> For the complete documentation index, see [llms.txt](https://docs.ashswap.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ashswap.io/resources/ashswap-academy/defi-handbook-introduction-to-decentralized-finance.md). # DeFi Handbook — Introduction to Decentralized Finance ![](/files/CspR7hRd0i6sXNu3sXwf) We want to start this article with a screenshot from CZ — the “You-Know-Who” > It’s always a build market The crypto markets are in a bear market. There’s no way to sugarcoat the fact that we are having a difficult time. However, this is also a chance for us to focus on building, learning, and preparing for the next cycle. As a DeFi protocol, we want our users to know more knowledge about the crypto world, especially about DeFi; hence, with the support from Istari Vision, we already created a takeaway handbook in PDF version with the target to provide you an overview about the DeFi world. The handbook content is divided into 3 main parts: 1. **Understanding DeFi** * Centralized vs. Decentralized Finance * Smart Contracts * Validation of transactions * Stablecoins * Decentralized Autonomous Organization (DAO) * History of DeFi 2\. **Diving into DeFi** * What can you do with DeFi? * What are AMMs? * What is Liquidity Pool? * What is Yield Farming? * What is Impermanent Loss? 3\. **DeFi applications** * Decentralized Exchanges (DEX) * Derivatives * Trading → Swapping * Governance * Lending & Borrowing Besides, we are planning to make an articles series called AshSwap DeFi 101 where we have more deep-dive content about the terms & everything related to DeFi & Elrond blockchain, so do not hesitate to subscribe to our Medium page for receiving notifications about our new posts. 👉 Download the handbook here: