ABSTRACT 'Decentralized finance'(DeFi) refers to a range of applications in the crypto-asset
space that seek to disintermediate the provision of financial services through reliance on self …

In this paper, we study the mechanisms that govern price stability of MakerDAO's DAI token,
the first decentralized stablecoin. DAI works through a set of autonomous smart contracts, in …

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 finance (DeFi), which executes financial transactions using blockchain
without an intermediary, has attracted over US $250 billion in total value locked (TVL) at its …

We provide an economic model of a decentralized exchange (DEX) that allows investors to
concentrate liquidity within exogenously specified price intervals (eg, Uniswap V3). We …

In this viewpoint article, we provide an analysis of the value proposition of decentralized
finance (DeFi) and its limitations using a simple stylized model of collateralized lending …

This paper studies determinants of interest rates on Decentralized lending protocols. Using
transaction level data, we show these protocols are being used to make long or short …

Lending protocols in decentralized finance enable the permissionless exchange of capital
from lenders to borrowers without relying on a trusted third party for clearing or market …

Decentralized finance (DeFi) borrowing and lending platforms are crucial to the
decentralized economy, involving two main participants: lenders who provide assets for …

This paper examines DeFi leverage, using wallet-level data on major lending platforms. The
overall leverage typically ranges between 1.4 and 1.9, while the largest and most active …