Decentralized Finance (DeFi)
Defi is a broad category of smart contracts which loosely correspond to digital investment schemes running on a blockchain which allow users to create overcollateralized loans out of stablecoin and which have side payouts in so-called "governance tokens".
DeFi generally refers to a collection of services which offer lending products offered by non-banks and which exist outside the regulatory perimeter as a form regulatory arbitrage and to fund margin trading activities to speculaate on crypto assets.
See also yield farming, AMM, DEX and shadow bank.
References
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- Anker-Sørensen, Linn, and Dirk A Zetzsche. 2021. âFrom Centralized to Decentralized Finance: The Issue Ofâ. Available at SSRN 3978815. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3978815.
- Aramonte, Sirio, Wenqian Huang, and Andreas Schrimpf. 2021. âDeFi Risks and the Decentralisation Illusionâ, 16.
- Barbereau, Tom, Reilly Smethurst, Orestis Papageorgiou, Alexander Rieger, and Gilbert Fridgen. 2022. âDeFi, Not So Decentralized: The Measured Distribution of Voting Rightsâ. In Proceedings of the 55th Hawaii International Conference on System Sciences. https://scholarspace.manoa.hawaii.edu/handle/10125/80074.
- Barbereau, Tom, Reilly Smethurst, Orestis Papageorgiou, Johannes Sedlmeir, and Gilbert Fridgen. 2022. âDecentralised Financeâs Unregulated Governance: Minority Rule in the Digital Wild Westâ. Available at SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4001891.
- Brennecke, Martin, Benjamin Schellinger, Nils Urbach, and Tobias Guggenberger. 2022. âThe De-Central Bank in Decentralized Finance: A Case Study of MakerDAOâ. In 55th Hawaii International Conference on System Sciences (2022). https://doi.org/10.24251/HICSS.2022.737.
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- Ciriello, Raffaele Fabio. 2021. âTokenized Index Funds: A Blockchain-Based Concept and a Multidisciplinary Research Frameworkâ. International Journal of Information Management 61: 102400. https://doi.org/10.1016/j.ijinfomgt.2021.102400.
- Eikmanns, Benedikt C., Pascal Mehrwald, Isabell M. Welpe, and Philipp G. Sandner. n.d. âIs Ethereum the New IOS? Exploring the Platform Economy of Decentralized Financeâ. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3992625.
- Harwick, Cameron, and James Caton. 2020. âWhatâs Holding Back Blockchain Finance? On the Possibility of Decentralized Autonomous Financeâ. Quarterly Review of Economics and Finance, October. https://doi.org/10.1016/j.qref.2020.09.006.
- Johnson, Kristin N. 2021. âDecentralized Finance: Regulating Cryptocurrency Exchangesâ. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3831439.
- Maia, Guilherme, and JoĂŁo Vieira dos Santos. 2021. âMiCA and DeFi (âProposal for a Regulation on Market in Crypto-Assetsâ and âDecentralised Financeâ)â. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3875355.
- Nedashkovskiy, Alexander. 2021. âUnderstanding DeFi Ecosystem and How Can It Change or Transform Existing Financial Systemâ. https://lutpub.lut.fi/handle/10024/162989.
- Qin, Kaihua, Liyi Zhou, Yaroslav Afonin, Ludovico Lazzaretti, and Arthur Gervais. 2021. âCeFi vs. DeFi â Comparing Centralized to Decentralized Financeâ. ArXiv Preprint ArXiv:2106.08157. http://arxiv.org/abs/2106.08157.
- Saengchote, Kanis. 2021. âA DeFi Bank Run: Iron Finance, IRON Stablecoin, and the Fall of TITANâ. IRON Stablecoin, and the Fall of TITAN (July 16, 2021).
- Schär, Fabian. 2021. âDecentralized Finance: On Blockchain-and Smart Contract-Based Financial Marketsâ. Federal Reserve Bank of St. Louis Review 103 (2): 153â74. https://doi.org/10.20955/r.103.153-74.
- Sun, Xiaotong. 2021. âCentralized Governance in Decentralized Finance (DeFi): A Case Study of MakerDAOâ. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3971791.
- Zetzsche, Dirk A., Douglas W. Arner, and Ross P. Buckley. 2020. âDecentralized Financeâ. Journal of Financial Regulation 6 (2): 172â203. https://doi.org/10.1093/jfr/fjaa010.