Free module · Crypto & decentralized finance
Crypto Markets: Instruments, Ownership and Cash Flows
Read the units and claims before measuring returns.
spot · quote currencies · depth · stablecoins · custody · token supply
The building blocks
A token balance, an exchange claim, a wrapped asset and a derivative are different economic positions even when they reference the same name.
- Identify ownership, denomination and settlement.
- Convert each cash flow into a consistent reporting currency.
- Stress execution, custody and supply assumptions.
Lessons in this module
- Base, quote and instrument identity
- Returns across two currencies
- Order-book depth and average execution price
- Stablecoin conversion is an FX route
- Custody claims and recovery scenarios
- Token issuance, unlocks and dilution
- Staking rewards and economic return
- A reconciled spot research ledger
Practice and apply
- Base, quote and instrument identity — .2 BTC at 50000 USDT/BTC; USDT valued at .98 USD. Find marked dollars.
- Returns across two currencies — Base/quote return .10 and quote/USD return -.05 over the same interval. Find dollar return.
- Order-book depth and average execution price — .5 BTC fills at 50000 and .3 at 50100. Find average price.
- Stablecoin conversion is an FX route — 105 local/token, 1 USD/token, direct FX 100 local/USD. Find route premium.
- Custody claims and recovery scenarios — Exposure $10000, assumed event probability .02, conditional recovery .40. Find expected loss.
- Token issuance, unlocks and dilution — Initial token price $2, supply 100 million; new supply 125 million at unchanged total marked value. Find price.
- Staking rewards and economic return — Net units grow .08 and USD token price falls .20 over one year. Find dollar return.
- A reconciled spot research ledger — Start .5 BTC, buy .2, sell .1, deposit .05, withdraw .03, pay .001 BTC fee. Find ending BTC.
Work through the practice exercises · Quant development tools