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If you've already had some experience with decentralized finance (DeFi), there are many different directions you could take to continue exploring and building in this space.

There are plenty of exciting opportunities to explore in the DeFi space, whether you're a developer, entrepreneur, investor, or enthusiast.

Skills

What DeFi insurance is

Insurance is a way for people to protect themselves from potential risks. You buy insurance from an insurance company for some fee, and if an accident occurs, the company compensates you. Insurance companies are essentially a way for people to socialise their risks (e.g. illness, by pooling their money together. In DeFi, just as there are decentralised protocols built for people to lend out and/or exchange their tokens, there are insurance protocols where one can buy insurance against accidents on the blockchain — or put their funds in the insurance pools to cover others from losses in exchange for rewards. Insurance is still a nascent and fairly niche sector in crypto. DeFi insurance products typically give cover for smart contract failures (exploited bugs). While this is certainly a considerable risk when using DeFi in general, the cost of buying DeFi insurance on top of (for example) a DeFi loan is simply not worth the extra work for many people. As the industry evolves, we may see a broader use of insurance contracts issued on blockchains. Ironically, decentralised insurance applications may be exploitable themselves.
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Projects

Euler Finance

### What Euler is a non-custodial permissionless protocol on Ethereum that allows users to lend and borrow almost any crypto asset. Euler helps users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third-party. ### Why? Euler introduces a number of new features in DeFi, including permissionless lending markets, protected collateral, reactive interest rates, per-second compounding interests and feeless flash loans. #### Permisionless listing Euler lets its users determine which assets are listed. Any asset that has a WETH pair on Uniswap v3 can be added as a lending market on Euler. #### Protected Collateral On Compound and Aave, collateral deposited to the protocol is always made available for lending. On the other hand, Euler allows collateral to be deposited, but not made available for lending. This collateral is 'protected'. It doesn't earn interest, but is free from the risks of borrowers defaulting, can always be withdrawn instantly, and helps protect against borrowers using tokens to influence governance decisions. #### Reactive interest rates Euler uses control theory to autonomously change the interest rates towards a level that maximises utilisation of assets in the protocol. These reactive interest rates adapt to market conditions for the asset in real-time without the need for ongoing governance intervention. #### Compound Interest Compound interest is accrued on Euler each second. This is different from other lending protocols, where interest is typically accrued every block. Earning interest per-second is generally expected to perform more predictably in the long-run, even if upgrades to Ethereum lead to changes in the average time between blocks. #### Feeless Flash Loans Euler only charges fees according to the time value of money, and from the blockchain's perspective flash loans are held for a duration of 0 seconds. Thus, they are entirely free on Euler (ignoring gas costs).

www.euler.finance

Glossary

AMM

Traditional digital markets, like the NASDAQ stock exchange (as well as centralized crypto exchanges) work with matching engines built for so-called Limit Order Books: buyers and sellers have to offer up their goods at a certain price in a certain quantity, and wait to be matched with someone else to conduct a trade. This may sound simple in principle, but these orderbooks are a very competitive landscape where professional market makers compete with each other at split second speeds — it has been practically impossible to replicate this model on today's decentralized blockchains such as Ethereum.
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Layer two

Layer 2s can make blockchain networks cheaper, faster, and therefore more useful for more people. Blockchain systems offer great technological benefits for money transfers and record-keeping in general; the main properties most often considered are decentralisation, trust– and permissionlessness, censorship resistance and immutability. These desired properties of decentralised networks come at the cost of limited throughput, however. Even the most prominent networks of today, Bitcoin and Ethereum are only able to handle a fairly limited amount of transactions in a given time period; an average BTC transfer takes about 10 minutes, and some interactions with Ethereum dApps can cost hundreds of dollars in gas fees during congested. times. Scaling solutions to blockchains are an advanced topic with much ongoing research and development. The technical descriptions and differences between each is beyond the scope of this explainer, but they are well worth researching for the curious. For Bitcoin, the most notable L2 solution is Lightning Network. Ethereum has numerous Layer 2 implementations, with the two main approaches being Optimistic Rollups and Zero-Knowledge Rollups.
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