An Introduction to Decentralized Finance (DeFi)
Research output: Contribution to journal › Journal article › Research › peer-review
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An Introduction to Decentralized Finance (DeFi). / Jensen, Johannes Rude; Von Wachter, Victor; Ross, Omri.
In: Complex Systems Informatics and Modeling Quarterly, Vol. 26, No. 26, 150, 2021, p. 46-54.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - An Introduction to Decentralized Finance (DeFi)
AU - Jensen, Johannes Rude
AU - Von Wachter, Victor
AU - Ross, Omri
PY - 2021
Y1 - 2021
N2 - Decentralized financial applications (DeFi) are a new breed of consumer-facing financial applications composed as smart contracts, deployed on permissionless blockchain technologies. In this article, we situate the DeFi concept in the theoretical context of permissionless blockchain technology and provide a taxonomical overview of agents, incentives and risks. We examine the key market categories and use-cases for DeFi applications today and identify four key risk groups for potential stakeholders contemplating the advantages of decentralized financial applications. We contribute novel insights into a rapidly emerging field, with far-reaching implications for the financial services.
AB - Decentralized financial applications (DeFi) are a new breed of consumer-facing financial applications composed as smart contracts, deployed on permissionless blockchain technologies. In this article, we situate the DeFi concept in the theoretical context of permissionless blockchain technology and provide a taxonomical overview of agents, incentives and risks. We examine the key market categories and use-cases for DeFi applications today and identify four key risk groups for potential stakeholders contemplating the advantages of decentralized financial applications. We contribute novel insights into a rapidly emerging field, with far-reaching implications for the financial services.
U2 - 10.7250/csimq.2021-26.03
DO - 10.7250/csimq.2021-26.03
M3 - Journal article
VL - 26
SP - 46
EP - 54
JO - Complex Systems Informatics and Modeling Quarterly
JF - Complex Systems Informatics and Modeling Quarterly
SN - 2255-9922
IS - 26
M1 - 150
ER -
ID: 336129865