Decentralized Finance: Protocols, Risks, and Governance (Foundations and Trends(r) in Privacy and Security)

Capponi, Agostino; Iyengar, Garud; Sethuraman, Jay

ISBN 10: 1638282706 / ISBN 13: 9781638282709

Published by Now Publishers, 2023

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Seller Inventory # 18398949285

Bibliographic Details

• Title: Decentralized Finance: Protocols, Risks, and Governance (Foundations and Trends(r) in Privacy and Security)
• Publisher: Now Publishers
• Publication Date: 2023
• Language: English
• ISBN 10: 1638282706
• ISBN 13: 9781638282709
• Binding: Soft cover
• Condition: New

About this title

Synopsis

Financial markets are undergoing an unprecedented transformation. Technological advances have brought major improvements to the operations of financial services. While these advances promote improved accessibility and convenience, traditional finance shortcomings like lack of transparency and moral hazard continue to plague centralized platforms, imposing societal costs. The advent of distributed ledger technologies presents an opportunity to alleviate some of the issues raised by centralized financial platforms, regardless of their integration of financial technology enhancements. These technologies have the potential to further disrupt the financial service industry by facilitating the transition to a decentralized trading environment, also referred to as decentralized finance (DeFi). DeFi enables the provision of services such as exchanges, lending, derivatives trading, and insurance without the need for a centralized intermediary. This monograph provides an overview of the DeFi ecosystem, with a focus on exchanges, lending protocols, and the decentralized governance structure in place. The monograph also discusses the operational risks inherent in the design of smart contracts and the DeFi ecosystem, and it concludes with remarks and directions for future research.