FTEC5640 Decentralized Finance / Spring 2026

Course Description

This course provides a foundational introduction to Decentralized Finance (DeFi) with an aim to bridge decentralized/ distributed computing and finance. Students will learn about decentralized systems, distributed consensus, blockchains, smart contracts, and the contrast between DeFi and traditional finance. The course starts with a brief review of the notion of money, conventional banking and payment systems. It then proceeds to cover different DeFi assets including cryptocurrencies, tokens and stablecoins.
Various DeFi infrastructure technologies such as Decentralized Exchanges (DEX), Automated Market Maker (AMM) protocols, Decentralized Lending/ Borrowing protocols, and Oracles are also discussed. The course concludes with decentralized governance, DeFi risk management and best practices for DeFi security. By exploring the intricacies of DeFi ecosystems, students will gain a better understanding of the opportunities, challenges, and systemic risks associated with this emerging field.

Upon successful completion of this course, students will be able to:

1. Understand the operating principles and concepts underlying various DeFi services.
2. Explain how cryptocurrencies, tokens, and smart contracts can be used to implement different financial services.
3. Evaluate various DeFi services by analyzing their strengths, limitations, potential applications and risks.
4. Assess the potential impact of different DeFi services on the financial industry and the society.

Please check Blackboard for important announcements, assignment submissions, grades, etc.

Course Assessment

• Programming Assignments/Labs (4-5 sets): 40%
• Project: 15%
• Exam: 45%

The tentative final exam date of the course is May 8, 1:30pm to 4:30pm (i.e., the usual Lecture meeting time of this course).

Student/Faculty Expectations on Teaching and Learning

https://mobitec.ie.cuhk.edu.hk/StaffStudentExpectations.pdf

Academic Honesty

You are expected to do your own work and acknowledge the use of anyone else’s words or ideas. You MUST put down in your submitted work the names of people with whom you have had discussions.

Refer to https://www.cuhk.edu.hk/policy/academichonesty for details

When scholastic dishonesty is suspected, the matter will be turned over to the University authority for action.

You MUST include the following signed statement in all of your submitted homework, project assignments and examinations. Submission without a signed statement will not be graded.

I declare that the assignment here submitted is original except for source material explicitly acknowledged, and that the same or related material has not been previously submitted for another course. I also acknowledge that I am aware of University policy and regulations on honesty in academic work, and of the disciplinary guidelines and procedures applicable to breaches of such policy and regulations, as contained in the website https://www.cuhk.edu.hk/policy/academichonesty/.

Academic Honesty Slides from Associate Dean of Faculty of Engineering

AI tools Policy

You are NOT allowed to use any AI tools (e.g., ChatGPT, Claude, etc.) in this course UNLESS instructor permission of using AI tools has been explicitly given to specific parts or question(s) of an assignment. Anyone who uses AI tools for completing the homework without explicit permission from the instructor will be treated as cheating.

Instructor

Prof. Wing C. Lau

Email: wclau [at] ie.cuhk.edu.hk

Office hours: TBD (SHB 818)

Teaching Assistants

Solon Li

Email: solon.android [at] gmail.com

Office hours: TBD

Kaixuan Luo

Email: luokaixuan [at] link.cuhk.edu.hk

Office hours: Tue 2:30PM - 3:30PM (SHB 803)