Grasping decentralized finance through the lens of economic theory

نویسندگان

چکیده

Abstract In this viewpoint article, we provide an analysis of the value proposition decentralized finance (DeFi) and its limitations using a simple stylized model collateralized lending. DeFi uses ledger to run smart contracts that automatically enforce terms lending contract safeguard collateral. can lower costs associated with intermediated improve financial inclusion. Limitations are volatility crypto collateral stablecoins used for settlement, possible incompleteness lack reliable oracle. A proper infrastructure reducing such could DeFi.

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ژورنال

عنوان ژورنال: Canadian Journal of Economics

سال: 2022

ISSN: ['0008-4085', '1540-5982']

DOI: https://doi.org/10.1111/caje.12627