This article was first published on Chainlink
*This tutorial is for anyone with a little familiarity with Python, and little to no Solidity/smart contract experience. *
The classic fintech world is full of tools that enable a user to make sophisticated algorithmic trading models and systems. The decentralized finance (DeFi) world offers users and developers those very same tools, with significantly more transparency and flexibility around the underlying financial protocols and instruments, giving rise to DeFi quantitative and research engineers. DeFi developers and DeFi quants can even leverage derivatives of those tools and compose them into new services to build innovative financial positions that have no equivalent in the traditional fintech world. One of the fundamental tools for DeFi developers is the ability to lend and borrow cryptocurrency assets in a non-custodial way. Some of the massive advantages of working with DeFi lending and borrowing protocols are:
- Frictionless short selling
- Obtaining liquidity without closing out your positions
- Gain yield on your deposited collateral
- Things impossible in the traditional fintech world, like flash loans.
A large portion of the fintech world uses Python, due to its wonderful developer experience. With smart contracts, you can use the exact same Python tools you are familiar with. You don’t need to know Solidity or how to write smart contracts in order to engage with quantitative DeFi or build your own cryptocurrency hedge fund or shop. However, if you do decide to learn Solidity, your DeFi prowess will be multiplied tenfold, as you’ll be able to engage in decentralized quantitative finance and pool your resources more efficiently.
In this tutorial, we will learn how to:
- Deposit collateral into the Aave Lending Pool
- Get the conversation rate between our collateral and another asset
- Use that collateral to borrow a different asset (take out a loan)
- Repay the loan
Learning how to ...
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