Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø

Aims:

The primary aim of this module is to provide students with a comprehensive understanding of the information security aspects, guarantees, and limitations of Decentralized Finance (DeFi). As a rapidly evolving field, DeFi offers innovative products and services that leverage blockchain and smart contract technologies to transform traditional financial services. This course seeks to equip students with the necessary skills and knowledge to critically analyze and improve the security of DeFi applications.

One of the key objectives of the module is to enable students to review and assess various DeFi applications, with a particular emphasis on identifying and addressing security vulnerabilities. Through hands-on assignments, students will learn to uncover potential weaknesses in DeFi applications and develop strategies for strengthening their security.

Furthermore, this course aims to foster creativity and innovation in the design of new DeFi primitives and applications. Students will engage with cutting-edge research, participate in discussions, and work on projects to develop novel DeFi solutions that address existing challenges and push the boundaries of what is possible within the decentralized finance ecosystem.

By focusing on the security aspects, vulnerability assessment, and innovative design of DeFi applications, this module prepares students for careers or research opportunities in the dynamic and transformative field of decentralized finance, contributing to the development of a more secure, efficient, and inclusive global financial system.

Intended learning outcomes:

On successful completion of the module, a student will be able to:

1. Demonstrate a systematic understanding of key aspects of Decentralized Finance, including detailed knowledge of its concepts, applications, and security, informed by the forefront of the field.
2. Accurately deploy established techniques of analysis and enquiry within the DeFi ecosystem, as well as devise and sustain arguments and solve problems using ideas and techniques at the forefront of the field.
3. Critically evaluate current research, advanced scholarship, and methodologies in DeFi, and where appropriate, propose new hypotheses, through a cultivated conceptual understanding.
4. Identify the uncertainty, ambiguity, and limits of knowledge in the DeFi landscape, and manage their own learning using scholarly reviews and primary sources such as refereed research articles and original materials.
5. Describe the function, application and limitations of various DeFi assets, exchanges, debt models, synthetic assets, and systemic risk measurement in decentralized systems.
6. Describe and critically analyse the security properties of price oracles, decentralized exchanges, DeFi privacy, contributing to a robust understanding of real-world connections with blockchains.
7. Assess and strengthen DeFi security by analysing past attacks, quantifying systemic risks stemming from Miner Extractable Value (MEV), identify vulnerabilities on e.g., decentralized governance and propose countermeasures.
8. Demonstrate originality in the application of knowledge and practical understanding of how established research and enquiry techniques are used to create and interpret knowledge in the DeFi field.

Indicative content:

The following is indicative of the topics the module will typically cover:

This module provides a comprehensive introduction to Decentralized Finance (DeFi), emphasizing the critical importance of information security in its design and implementation. Focusing on permissionless, open ledger systems, the curriculum delves into the foundations of DeFi, comparing it to centralized/traditional finance, and exploring a wide range of applications such as exchange/swap, lending/ borrowing, market making, stablecoins, pegged tokens, and price oracles. The module covers traditional financial concepts and extensively addresses DeFi-specific security concerns, including front-running, back-running, sandwich attacks, generalized replay bots, and multi-million-dollar attacks.

Throughout the module, students will engage with recent research papers from leading conferences (Financial Cryptography, IEEE S&P, AFT) and participate in hands-on assignments to design secure DeFi applications. The course highlights the interdisciplinary nature of DeFi, blending information security principles with computer science, finance, economics, and law. This module is primarily aimed at students interested in conducting research or pursuing a career in the rapidly growing DeFi space, which has surpassed $100 billion in value. However, it will also appeal to those with a casual interest in this timely and relevant topic, seeking to understand the essential role of information security in the development of DeFi systems.

Requisite conditions:

To be eligible to select this module as optional or elective, a student must be registered on a programme and year of study for which it is formally available.