Decentralized Finance: Protocols, Risks, and Governance.
Found. Trends Priv. Secur.(2023)
摘要
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 frictions continue to plague centralized platforms, imposing
societal costs. In this paper, we argue how these shortcomings and frictions
are being mitigated by the decentralized finance (DeFi) ecosystem. We delve
into the workings of smart contracts, the backbone of DeFi transactions, with
an emphasis on those underpinning token exchange and lending services. We
highlight the pros and cons of the novel form of decentralized governance
introduced via the ownership of governance tokens. Despite its potential, the
current DeFi infrastructure introduces operational risks to users, which we
segment into five primary categories: consensus mechanisms, protocol, oracle,
frontrunning, and systemic risks. We conclude by emphasizing the need for
future research to focus on the scalability of existing blockchains, the
improved design and interoperability of DeFi protocols, and the rigorous
auditing of smart contracts.
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关键词
governance,protocols
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