Week 1 Week 5 of 12 Week 12

Week 5: Lending Protocols

Collateralized lending, interest rate models, and liquidations

Complete

--- ## Learning Objectives

1. Calculate collateral ratios and health factors
2. Understand interest rate dynamics
3. Analyze liquidation mechanisms
4. Implement flash loan strategies

## Topics Covered

Overcollateralized lending Interest rate models Health factors and liquidations Aave and Compound mechanics Flash loans

--- ## Resources

Lecture Slides

Download PDF presentation

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Self-Assessment Quiz

Test your knowledge

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Lending Protocol Analysis

Open in Google Colab

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--- ## Required Readings

Paper	Authors	Year	Link
SoK: Lending Pools in Decentralized Finance	Gudgeon et al.	2020	Link

--- ## Reading Guide: Reading Guide: Decentralized Lending

2-3 hours Lending mechanics Liquidations Interest rate models

Understanding overcollateralized lending, liquidation mechanics, and interest rate models in DeFi.

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--- ## Exercise: Lending Protocol Analysis

100 Points 4-5 hours hard

Analyze lending protocol mechanics, calculate health factors, and simulate liquidation scenarios.

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--- ## Discussion & Questions

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