CORE DEFI PRIMITIVES AND MECHANICS

From Tokens to Governance, A Comprehensive Guide to DeFi Architecture

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#DeFi #Smart Contracts #Blockchain #Protocols #Governance
From Tokens to Governance, A Comprehensive Guide to DeFi Architecture

Tokens are the building blocks of DeFi, a topic covered in depth in Token Standards Explained From ERC‑20 to Advanced DeFi Protocols.

Token Standards

ERC‑20

ERC‑20 is the de facto standard because it offers continuous benefits for developers and users alike—see Token Standards Explained From ERC‑20 to Advanced DeFi Protocols for a thorough overview.

Core DeFi Primitives

Liquidity Pools

Liquidity pools, the foundation of many DeFi protocols, are a core DeFi primitive, illustrated in Core DeFi Primitives Unpacked.

Governance Token Design

Tokenomics Fundamentals

Tokenomics Fundamentals—see Designing Governance Tokens for Sustainable DeFi Projects for practical guidance.

Vesting and Lockups

Vesting schedules are critical for aligning incentives over the long term, a concept explored in The Role of Vesting in Aligning Incentives for DeFi Developers.

The Future Landscape

Emerging concepts include:

  • Composable Governance—protocols that allow governance logic to be reused across projects—can be found in Governance Token Design Patterns for Community‑Driven Protocols.
  • Cross‑Chain Voting: Enabling token holders to vote on multiple chains with a single interface.
  • Layer‑Zero Governance: Governance that applies to the base layer, influencing how all protocols run on top.
JoshCryptoNomad
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JoshCryptoNomad

CryptoNomad is a pseudonymous researcher traveling across blockchains and protocols. He uncovers the stories behind DeFi innovation, exploring cross-chain ecosystems, emerging DAOs, and the philosophical side of decentralized finance.

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