An Introduction to Decentralized Finance (DeFi)
Research output: Contribution to journal › Journal article › Research › peer-review
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.
Original language | English |
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Article number | 150 |
Journal | Complex Systems Informatics and Modeling Quarterly |
Volume | 26 |
Issue number | 26 |
Pages (from-to) | 46-54 |
ISSN | 2255-9922 |
DOIs | |
Publication status | Published - 2021 |
ID: 336129865