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Crypto DeFi Cheatsheet

One-page quick reference for key DeFi concepts, formulas, and tools. Free for everyone.

Core Concepts

DeFi = Decentralized Finance - financial services on blockchain without intermediaries

DEX = Decentralized Exchange - trade tokens directly from your wallet (Uniswap, SushiSwap)

Liquidity Pool = Collection of tokens locked in a smart contract to enable trading

Yield Farming = Providing liquidity to earn fees + token rewards

Impermanent Loss = Temporary loss when providing liquidity vs holding

Key Formulas

IL = 2 × sqrt(price_ratio) / (1 + price_ratio) - 1
APY = (1 + APR/n)^n - 1
Net Worth = Σ (token_balance × current_price)

Essential Tools

Portfolio Tracking: Google Sheets with CoinGecko API, Zapper, Zerion, DeBank

Gas Tracking: Etherscan, GasNow, ETH Gas Station

Security: Revoke.cash, Etherscan Token Approval checker

Research: Dune Analytics, DeFi Llama, Token Terminal, Messari

Risk Management

Never invest more than you can afford to lose

Always use hardware wallet for large amounts

Check contract audits before depositing

Diversify across protocols and chains

Track your trades for tax purposes

Recommended First Steps

1. Set up MetaMask (wallet)

2. Bridge ETH to L2 (Arbitrum, Optimism, Base)

3. Try a small swap on Uniswap

4. Provide liquidity to a stable pair (USDC/DAI)

5. Track everything in a portfolio spreadsheet

Tip: For a complete 45-chapter guide, check out our DeFi 101 Guide ($3)