Abstract
Decentralized finance is a technological infrastructure built on a block-chain 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 block-chain 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.
| Original language | English |
|---|---|
| Title of host publication | The Emerald Handbook on Cryptoassets |
| Subtitle of host publication | Investment Opportunities and Challenges |
| Publisher | Emerald Group Publishing Ltd. |
| Pages | 327-340 |
| Number of pages | 14 |
| ISBN (Electronic) | 9781804553206 |
| ISBN (Print) | 9781804553213 |
| DOIs | |
| State | Published - 16 Jan 2023 |
Bibliographical note
Publisher Copyright:© 2023 by Emerald Publishing Limited. All rights reserved.
Keywords
- Automated market makers
- Decentralized exchanges
- Decentralized finance
- Decentralized lending
- Liquidity pools
- Stablecoins
- Synthetic instruments