We explain the mechanics of smart contracts. We then highlight the benefits of smart
contracts, such as overcoming commitment problems. We also discuss limitations, such as …

We compare the market quality of centralized crypto exchanges (CEXs) such as Binance
and Kraken to decentralized blockchain-based venues (DEXs) such as Uniswap v2 and v3 …

We consider the market microstructure of constant function market makers (CFMMs) from the
perspective of passive liquidity providers (LPs). In a Black-Scholes setting, we compare the …

Financial markets are undergoing an unprecedented transformation. Technological
advances have brought major improvements to the operations of financial services. While …

How financial technology impacts financial inclusion and democratic access to financial
services is central for policy discussions and applied research (World Bank Group, 2016; …

Decentralized exchanges (DEXs) are an essential component of the nascent decentralized
finance (DeFi) ecosystem. The most common DEXs are so-called automated market makers …

This paper examines the economic implications of scaling blockchains under two different
consensus protocols: Proof-of-Work (PoW) and Proof-of-Stake (PoS). We study an economic …

We study the equilibrium level of staking in a Proof-of-Stake blockchain when investors have
different trading horizons. We find that, contrary to conventional wisdom, staking levels do …

We study lending in decentralized finance facilitated by a programmable interest rate rule
set by a Protocol for Loanable Funds (PLF). PLFs suffer a disadvantage when compared to …

Decentralized exchanges (DEXs) allow traders to express their willingness to pay for quick
execution through a public priority fee bidding mechanism. This influences the trading …