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CERTIFICATION

You have 60 minutes to answer 30 exam questions, with each question having exactly one correct answer. If you answer at least 80% of the questions correctly (i.e., at least 24 correct answers), then you have passed and you can download your certificate as a PDF directly at the end of the exam. If you don’t get the 80%, you can retake the exam as many times as you like. Good luck!

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Category: Module 1: Introduction to DeFi

Approximately how many different DeFi categories does the information provider DeFiLlama distinguish?

Approximately 500

Approximately 30

Not more than 5

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Category: Module 1: Introduction to DeFi

What is a DAO?

Decentralized autonomous organization

Decentralized automated onramping

Decentralized automated organization

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Category: Module 1: Introduction to DeFi

Is Ethereum or Polygon better for trying out DeFi protocols?

Both chains have an active DeFi community, but Polygon is a better option to try because of the much lower transaction costs

Both chains are unsuitable for trying out DeFi protocols because of their very high transaction costs

Both chains have an active DeFi community, but Ethereum is a better place to try because of the much lower transaction costs

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Category: Module 1: Introduction to DeFi

What is the Total Value Locked (TVL) of a blockchain?

The total value of all governance tokens on a blockchain; kind of like the equity of the blockchain.

The total value of all tokens placed in DeFi protocols on a blockchain; kind of like the balance sheet of the blockchain.

The total value of all tokens in a blockchain for which the private key was lost and which are therefore no longer usable.

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Category: Module 1: Introduction to DeFi

What is meant by the term ‘Institutional DeFi’

The increasing investment activities of institutional investors in the DeFi area

Both other answers are correct

The combination of DeFi protocols on public blockchains with central access controls by regulated institutions

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Category: Module 1: Introduction to DeFi

What is true about the history of Ethereum and Bitcoin?

Bitcoin's DeFi ecosystem is still significantly larger than that of Ethereum. But this could change soon.

Although Bitcoin went live in 2009, it was only the introduction of smart contracts by Ethereum in 2015 that made DeFi services possible.

NFT and ICO applications were launched before DeFi applications because, unlike DeFi applications, they run best on the Bitcoin blockchain.

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Category: Module 1: Introduction to DeFi

Are payments in DeFi or in TradFi faster?

Payments in TradFi are always faster than in DeFi because central servers are always faster than decentralized blockchains with their consensus mechanisms.

It depends. DeFi payments are much faster than international TradFi payments via correspondent banks. However, national centralized payment systems can also be very fast.

Payments in DeFi are always faster than in TradFi because in the TradFi world you always need correspondent banks which makes payments slow.

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Category: Module 1: Introduction to DeFi

Which definition of DeFi makes the most sense?

DeFi is based on public blockchains, non-custodial protocols, open source code and decentralized governance.

DeFi is based on distributed ledgers controlled by private consortia (mostly consisting of banks).

DeFi is based on private blockchains, non-custodial protocols, open source code and decentralized governance.

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Category: Module 4: Decentralized Exchanges

What approvals do you need to offer your own token for trading on Uniswap?

It doesn't need approvals! Any ERC-20 token can be offered for trading on Uniswap without approval.

Uniswap is domiciled in the USA (New York) and therefore needs the approval of the SEC (Securities & Exchange Commission) for newly traded tokens.

A token can only be offered for trading on Uniswap once the majority of UNI governance token holders have given their approval.

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Category: Module 4: Decentralized Exchanges

Which statement about the relative size of the Total Value Locked (TVL) of different DeFi categories is correct?

TVL of decentralized exchanges and TVL of decentralized lending are much larger than TVL of decentralized insurance

TVL of decentralized lending and TVL of decentralized insurance are much larger than TVL of decentralized exchanges

TVL of decentralized exchanges and TVL of decentralized insurance are much larger than TVL of decentralized lending

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Category: Module 4: Decentralized Exchanges

How do you define impermanent loss in the context of a decentralized exchange?

Opportunity cost of holding tokens in a DEX pool with low fees and volume versus holding in a pool with high fees and volume

Opportunity cost of holding tokens in a DEX pool versus holding the same tokens outside of the pool in a wallet

One-time loss of the DEX user due to price slippage

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Category: Module 4: Decentralized Exchanges

What is the key equation most Automated Market Makers use to determine the token swap price?

Token price = (lowest bid price + highest bid price) / 2

(price token 1) * (price token 2) = constant

(number of token 1) * (number of token 2) = constant

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Category: Module 4: Decentralized Exchanges

What is meant by LP tokens in the DeFi world?

These are legal provider tokens, i.e. governance tokens of a legal service on the blockchain.

These are loan provider tokens, which are awarded to users who provide loans in lending protocols.

These are liquidity provider tokens, which are awarded to users who provide liquidity into liquidity pools of a protocol.

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Category: Module 6: Decentralized Insurance

On which blockchains was Unslashed Finance rolled out?

Polygon

Ethereum, Arbitrum, Polygon, Optimism, Celo

Ethereum

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Category: Module 6: Decentralized Insurance

Which risks can be insured with decentralized insurance protocols such as Unslashed Finance?

DApp / smart contract risks, oracle risks, stablecoin de-pegs, PoS validator slashing, central exchange hacks, central custodian hacks, wallet hacks

DApp / smart contract risks, oracle risks, stablecoin de-pegs

PoS validator slashing, central exchange hacks, central custodian hacks, wallet hacks

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Category: Module 6: Decentralized Insurance

How does the Unslashed Finance protocol determine whether an insurance claim is valid or not?

A decentralized majority decision is made by randomly selected judges using the Kleros protocol.

The Unslashed Finance governance token holders (USF token) make a majority decision.

The decisions are made fully automatically by a smart contract on-chain.

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Category: Module 5: Decentralized Lending

What is the core function of the Aave Safety Module?

The Safety Module gives users the security of complying with international anti money laundering regulations at all times.

The Safety Module serves as additional security for lenders in the event of an unusually large collapse in the price of the collateral deposited by the borrowers.

The Safety Module is a smart contract that makes it particularly difficult for hackers to steal the tokens deposited with Aave.

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Category: Module 5: Decentralized Lending

What is an “aToken” (e.g. aMATIC) in the context of Aave?

A tokenized (and thus tradable) version of a lending position

A tokenized (and thus tradable) version of a borrowing position

An Aave governance token

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Category: Module 5: Decentralized Lending

What credit durations does Aave offer its users?

Individually agreed by borrowers and lenders

1, 3, 6, 12 months

There are no fixed loan durations. Aave loans are perpetual loans.

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Category: Module 5: Decentralized Lending

What does a liquidation threshold of 80% mean for DAI collaterals at Aave?

If the loan-to-value (LTV) ratio rises above 80%, then the DAI collateral is liquidated.

A borrower can borrow a maximum of 80% of his DAI collateral.

If the loan-to-value (LTV) ratio falls below 80%, then the DAI collateral is liquidated.

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Category: Module 5: Decentralized Lending

What is the most appropriate description of Aave’s offering?

Aave is a decentralized protocol that only allows users to borrow tokens.

Aave is a decentralized protocol that only allows users to generate a passive income by lending their own tokens.

Aave is a decentralized protocol that allows users to both borrow tokens and generate a passive income by lending their own tokens.

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Category: Module 5: Decentralized Lending

What is a flash loan?

A secured loan that is immediately repaid within the same blockchain transaction

A loan paid out in the form of Flash Coins (both secured and unsecured possible)

An unsecured loan that is immediately repaid within the same blockchain transaction

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Category: Module 2: DeFi Core Concepts

What is meant by DeFi Lego?

The Lego company makes its building instructions for Lego models available via smart contracts.

That makes no sense! Children's toys have nothing to do with finance.

All smart contracts and tokens can be combined without limites by anyone.

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Category: Module 2: DeFi Core Concepts

What is an example of bootstrapping?

Governance token holders receive a large part of the fees of the DeFi service.

The DeFi service does not pay any benefits to liquidity providers in the first few months in order to first set up their own treasury.

A newly launched DeFi protocol distributes part of its own governance tokens to liquidity providers.

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Category: Module 2: DeFi Core Concepts

What is an example of a smart contract risk?

A hacker finds a bug in a smart contract that allows him to steal the tokens from the contract.

The regulator prohibits the smart contract of a DeFi protocol which offers users ananymizing token origins.

An attacker buys the majority of the governance tokens via a DEX and thus takes control of the smart contract.

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Category: Module 2: DeFi Core Concepts

What is an oracle?

An Oracle is a smart contract-based service for betting (e.g. sports betting).

An oracle connects multiple blockchains to get a single network.

An oracle brings off-chain data into the blockchain and makes this data usable for smart contracts.

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Category: Module 3: Setting Up Your Wallet

What is the difference between a seed phrase and a secret backup phrase?

The seed phrase is the public version of the secret backup phrase.

It is the same.

The secret backup phrase is the backup version of the seed phrase.

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Category: Module 3: Setting Up Your Wallet

What is a secret backup phrase?

12 or 24 words generated by your wallet, which give you unrestricted access to your tokens via your wallet.

12 or 24 words chosen by yourself, which give you unrestricted access to your tokens via your wallet.

Similar to the private key, the secret backup phrase is a hexadecimal string.

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Category: Module 3: Setting Up Your Wallet

How long does it take to setup a wallet like MetaMask?

Just a few seconds since the wallet does not have to keep a complete copy of the blockchain itself.

The software of wallet is quickly installed, but it can only be used after a few hours when the complete copy of the blockchain has been downloaded.

The software of wallet is quickly installed, but it can only be used after a few days when the complete copy of the blockchain has been downloaded.

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Category: Module 3: Setting Up Your Wallet

Which is the most suitable description of the MetaMask wallet?

The MetaMask wallet is a multi-signature smart contract for storing tokens directly on the blockchain.

The MetaMask wallet is essentially an account with a central institute through which tokens can be bought and sold.

The MetaMask wallet is a non-custodial wallet, which allows everyone to be their own bank.

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