Inside this simulator
Work through decentralised finance from the inside: supply collateral to a lending market, borrow against it, watch the health factor move as prices do, and get liquidated once on purpose so the mechanic is never abstract again. Swaps and yield sources are covered with the same hands-on framing.
What you'll do
- Supply collateral, borrow against it, and track the health factor
- Trigger a liquidation and read what it actually costs
- Execute swaps and observe slippage and price impact on thin liquidity
- Decompose an advertised yield into its real sources and risks
Skills you'll evidence
- Explaining smart-contract risk distinct from market risk
- Reading an APY and identifying which part is emission and which is fee revenue
- Recognising when a 'yield product' is an undisclosed leveraged position
Who it's for
Advisors whose clients are already earning yield somewhere and cannot explain where it comes from.
Common questions
- Where does DeFi yield actually come from?
- Three places, in descending order of durability: fees paid by borrowers or traders, token emissions subsidised by a protocol treasury, and leverage embedded in the structure. Only the first is a business. The exercise makes you attribute a headline APY to its components before deciding it is suitable.
- What is a liquidation and why does it matter for clients?
- When collateral value falls far enough relative to a loan, the position is force-closed at a penalty. Clients who treat borrowing against crypto as a tax-efficient liquidity strategy frequently have not priced that penalty into a drawdown scenario.