A closer look into decentralized finance

Hugo Benedetti, Sebastian Labbe

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


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 languageEnglish
Title of host publicationThe Emerald Handbook on Cryptoassets
Subtitle of host publicationInvestment Opportunities and Challenges
PublisherEmerald Group Publishing Ltd.
Number of pages14
ISBN (Electronic)9781804553206
ISBN (Print)9781804553213
StatePublished - 16 Jan 2023

Bibliographical note

Publisher Copyright:
© 2023 by Emerald Publishing Limited. All rights reserved.


  • Automated market makers
  • Decentralized exchanges
  • Decentralized finance
  • Decentralized lending
  • Liquidity pools
  • Stablecoins
  • Synthetic instruments


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