SoK: Lending Pools in Decentralized Finance

Bartoletti, Massimo; Chiang, James Hsin yu; Lafuente, Alberto Lluch

doi:10.1007/978-3-662-63958-0_40

Cited by 40 publications

(22 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The mechanics and properties of DeFi lending protocols are investigated in several studies [21], [8], [47], [57], [34]. Gudgeon et al [21] coin the phrase Protocol for Loanable Funds (PLFs), to name protocols that form distributed ledgerbased markets for loanable funds.…”

Section: Related Workmentioning

confidence: 99%

SoK: Yield Aggregators in DeFi

Cousaert¹,

Xu²,

Matsui³

2022

2022 IEEE International Conference on Blockchain and Cryptocurrency (ICBC)

View full text Add to dashboard Cite

Yield farming has been an immensely popular activity for cryptocurrency holders since the explosion of Decentralized Finance (DeFi) in the summer of 2020. In this Systematization of Knowledge (SoK), we study a general framework for yield farming strategies with empirical analysis. First, we summarize the fundamentals of yield farming by focusing on the protocols and tokens used by aggregators. We then examine the sources of yield and translate those into three example yield farming strategies, followed by the simulations of yield farming performance, based on these strategies. We further compare four major yield aggregators-Idle, Pickle, Harvest and Yearn-in the ecosystem, along with brief introductions of others. We systematize their strategies and revenue models, and conduct an empirical analysis with on-chain data from example vaults, to find a plausible connection between data anomalies and historical events. Finally, we discuss the benefits and risks of yield aggregators.

show abstract

Section: Related Workmentioning

confidence: 99%

SoK: Yield Aggregators in DeFi

Cousaert¹,

Xu²,

Matsui³

2022

2022 IEEE International Conference on Blockchain and Cryptocurrency (ICBC)

View full text Add to dashboard Cite

show abstract

“…Daian et al [23] firstly introduce the potential impact of MEV on security. Many works analyzed the MEV extraction in various blockchain infrastructures [7,8,11]. Chen et al [19] investigated and systematized the vulnerabilities, attacks, and defenses of the Ethereum system security.…”

Section: Consensus Securitymentioning

confidence: 99%

Empirical Analysis of EIP-1559: Transaction Fees, Waiting Time, and Consensus Security

Liu,

Lu,

Nayak

et al. 2022

Preprint

View full text Add to dashboard Cite

Transaction fee mechanism (TFM) is an essential component of a blockchain protocol. However, a systematic evaluation of the real-world impact of TFMs is still absent. Using rich data from the Ethereum blockchain, mempool, and exchanges, we study the effect of EIP-1559, one of the first deployed TFMs that depart from the traditional first-price auction paradigm. We conduct a rigorous and comprehensive empirical study to examine its causal effect on blockchain transaction fee dynamics, transaction waiting time, and security. Our results show that EIP-1559 improves the user experience by making fee estimation easier, mitigating intra-block difference of gas price paid, and reducing users' waiting times. However, EIP-1559 has only a small effect on gas fee levels and consensus security. In addition, we found that when Ether's price is more volatile, the waiting time is significantly higher. We also verify that a larger block size increases the presence of siblings. These findings suggest new directions for improving TFM.

show abstract

“…Trading liquidity is provided by 'liquidity providers' which lock crypto assets in the pursuit of trading fee returns. While the primary context for the formal literature on blockchain based AMM has been provided by Angeris and Chitra et al [13]- [15] the field has attracted new work on adjacent topics such as liquidity provisioning [16]- [18] and token weighted voting systems [19].…”

Section: Decentralized Exchanges and Automated Market Makersmentioning

confidence: 99%

An Introduction to Decentralized Finance (DeFi)

Jensen¹,

Wachter²,

Ross³

2021

J. Complex Syst. Inform. Model. Q.

View full text Add to dashboard Cite

Decentralized financial applications (DeFi) are a new breed of consumer-facing financial applications composed as smart contracts, deployed on permissionless blockchain technologies. In this article, we situate the DeFi concept in the theoretical context of permissionless blockchain technology and provide a taxonomical overview of agents, incentives and risks. We examine the key market categories and use-cases for DeFi applications today and identify four key risk groups for potential stakeholders contemplating the advantages of decentralized financial applications. We contribute novel insights into a rapidly emerging field, with far-reaching implications for the financial services.

show abstract

SoK: Lending Pools in Decentralized Finance

Cited by 40 publications

References 30 publications

SoK: Yield Aggregators in DeFi

SoK: Yield Aggregators in DeFi

Empirical Analysis of EIP-1559: Transaction Fees, Waiting Time, and Consensus Security

An Introduction to Decentralized Finance (DeFi)

Contact Info

Product

Resources

About