A Closer Look Into Decentralized Finance
The Emerald Handbook on Cryptoassets: Investment Opportunities and Challenges
ISBN: 978-1-80455-321-3, eISBN: 978-1-80455-320-6
Publication date: 16 January 2023
Abstract
Decentralized finance is a technological infrastructure built on a blockchain networking environment that supplies transparent, uncensorable, and decentralized financial services and products. This infrastructure offers the opportunity to replicate traditional financial instruments on a decentralized platform and incorporate added features provided by blockchain technology. It also allows the creation of new instruments native to blockchain technology unavailable through traditional financial institutions. This chapter presents an in-depth analysis of the inner workings of stablecoins, decentralized exchanges, automated market makers, liquidity pools, decentralized lending, synthetic instruments, and asset management. It also provides specific examples for each application and presents some current challenges the sector faces.
Keywords
Citation
Benedetti, H. and Labbé, S. (2023), "A Closer Look Into Decentralized Finance", Baker, H.K., Benedetti, H., Nikbakht, E. and Smith, S.S. (Ed.) The Emerald Handbook on Cryptoassets: Investment Opportunities and Challenges, Emerald Publishing Limited, Leeds, pp. 327-340. https://doi.org/10.1108/978-1-80455-320-620221021
Publisher
:Emerald Publishing Limited
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