Who should get this book?
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I wish I could say that the book is for everyone. But it is not. This book is very specific to people in or trying to get into the crypto and DeFi space. If it feels like a good fit for you then you can pre-order and save up to 47% + get free access to premium subscription of our newsletter for an entire month: book.economicsdesign.com
In general, this book can be split into two main sections. Chapters 1 to 13 focus on economics. Chapters 14 to 25 focus on DeFi and the mathematics of such mechanisms.
If you are a protocol creator
That means you have an idea and you want to turn that idea into a smart contract on blockchain. I recommend that you start this way:
Understand foundations:
Chapter 4: Outcome and Constraints
Chapter 6: Market Design
Chapter 8: Mechanism Design
Chapter 10: Token Design
Chapter 13: Other Economics Principles
Bonding curve introduction:
Chapter 11: Bonding Curves
DeFi introduction:
Chapter 14: Economics of Decentralised Finance (DeFi)
Math for DeFi applications:
Chapter 16: Math of Stable Token
Chapter 17: Math of Decentralised Market Maker Mechanisms (AMM)
Chapter 18: Fundraising Bonding Curve
Chapter 19: Crypto Insurance • Chapter 20: Crypto Derivatives
Chapter 20: Crypto Derivatives
Governance:
Chapter 22: DAO, The Future of Governance
If you are a retail investor
You are probably looking for fundamental analysis before investing long-term with these protocols. Great job looking at fundamentals instead of only market analysis.
Case study for analysis: 7, 9, 12, 25, 26
Chapter 7: [Case Study] Nexus Mutual
Chapter 9: [Case Study] MakerDAO
Chapter 12: [Case Study] Bancor
Chapter 25: [Case Study] Tokenise This Book
Chapter 26: Future of Tokenised Ecosystems
DeFi introduction:
Chapter 14: Economics of Decentralised Finance (DeFi)
Math for DeFi applications:
Chapter 16: Math of Stable Token
Chapter 17: Math of Decentralised Market Maker Mechanisms (AMM)
Chapter 18: Fundraising Bonding Curve
Chapter 19: Crypto Insurance
Chapter 20: Crypto Derivatives
Governance:
Chapter 22: DAO, The Future of Governance
If you are looking to get educated about the space
Maybe because you want to get a job in the space, you want to learn more to be an investor, you want to consult for projects or you want to start your own project. That is all fantastic.
Economics for token engineering: 1 to 13
Chapter 1: Introduction to the Economics of Token Engineering
Chapter 2: Evolution of Economics
Chapter 3: Coordination and Incentives
Chapter 4: Outcome and Constraints
Chapter 5: 7 Wonders of Token Economics
Chapter 6: Market Design
Chapter 7: [Case Study] Nexus Mutual
Chapter 8: Mechanism Design
Chapter 9: [Case Study] MakerDAO
Chapter 10: Token Design
Chapter 11: Bonding Curves
Chapter 12: [Case Study] Bancor
Chapter 13: Other Economics Principles
DeFi and Math: 14 to 25
Chapter 14: Economics of Decentralised Finance (DeFi)
Chapter 15: Ponzinomics
Chapter 16: Math of Stable Token
Chapter 17: Math of Decentralised Market Maker Mechanisms (AMM)
Chapter 18: Fundraising Bonding Curve
Chapter 19: Crypto Insurance
Chapter 20: Crypto Derivatives
Chapter 21: Financial Risks of DeFi
Chapter 22: DAO, The Future of Governance
Chapter 23: Economics of Yield Farming
Chapter 24: [Case Study] Binance
Chapter 25: [Case Study] Tokenise This Book
If you are a regulator
Thank you for not just trying to squash a new evolving system into an old existing system, not trying to put “new wine into old wineskins”. Regulation works hand in hand with innovation, to support new systems and new ways of doing things.
Economic principles of these ecosystems:
Chapter 6: Market Design
Chapter 8: Mechanism Design
Chapter 10: Token Design
Chapter 13: Other Economics Principles
Case studies:
Chapter 7: [Case Study] Nexus Mutual
Chapter 9: [Case Study] MakerDAO
Chapter 12: [Case Study] Bancor
Chapter 25: [Case Study] Tokenise This Book
Chapter 26: Future of Tokenised Ecosystems
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