MetaFinance Unit 1: Blockchain Financial Products

Comprehensive Unit 1 Overview

MetaFinance Unit 1: Blockchain Financial Products builds upon the blockchain fundamentals learned in Unit 0, focusing on decentralized finance (DeFi) mechanisms that can generate passive income. Students will learn to use MetaWork’s financial tools to stake tokens, earn interest through lending, provide liquidity, and manage risks effectively. By the end of this unit, students will have practical experience with various DeFi strategies and understand how to build sustainable passive income streams.

Course Outline

Unit Structure

This unit consists of six one-hour lessons that progressively build students’ capabilities:

Lesson 7: What is DeFi?

• Introduction to decentralized finance principles
• Comparison with traditional financial systems
• Overview of DeFi product categories
• Navigating MetaWork’s financial tools

Lesson 8: Staking & Rewards

• Understanding staking mechanisms and rewards
• Types of staking approaches
• Calculating and comparing returns
• Practical staking on testnets

Lesson 9: Interest-Bearing Tokens

• Mechanics of lending protocols
• Using interest-bearing tokens
• Calculating yields and comparing options
• Risk management for lending

Lesson 10: Lending/Borrowing Pools

• Understanding lending pool operations
• Overcollateralization and liquidation mechanics
• Borrowing strategies and use cases
• Managing liquidation risk

Lesson 11: Token Swaps & DEXs

• Decentralized exchange mechanics
• Automated market maker operations
• Executing efficient token swaps
• Minimizing slippage and fees

Lesson 12: Risk Management

• DeFi risk categories and assessment
• Portfolio construction and diversification
• Impermanent loss calculation and mitigation
• Building a personal risk management framework

Assessment Approach

Assessment in this unit focuses on practical application and income-generating potential:

• In-class activities demonstrate technical skills and concept understanding
• Homework assignments build toward a comprehensive DeFi strategy
• The final test evaluates both technical knowledge and strategic thinking about DeFi participation

Required Resources

For Students:

• Computer with internet access
• Web browser (Chrome, Firefox, or Edge recommended)
• MetaWork account with wallet setup (from Unit 0)
• Testnet tokens (obtained through faucets)
• Blockchain explorer access

Connection to Unit 2

This unit prepares students for Unit 2 (Cryptocurrency/Equity Trading Concepts), where they will learn more advanced trading strategies. The passive income streams and risk management skills developed in Unit 1 provide a foundation for the more active trading approaches covered in Unit 2.

By the end of Unit 1, students will have transformed from passive users of financial services into active participants in the DeFi ecosystem, with practical knowledge of how to generate sustainable passive income through blockchain financial products.