Illiquidity Risks in Lending Protocols [LPs] : Evidence from Aave Protocol
In: 2021; (2021)
Online
Elektronische Ressource
Zugriff:
Benefiting from blockchain, Decentralized Finance (DeFi) can replicate most financial activities in traditional financial markets. Among various DeFi, Lending Protocols (LPs) allow users to borrow and lend tokens, which resembles banks in DeFi. In this paper, we investigate illiquidity risks of stablecoins in lending protocols, and measurements of illiquidity risks are established. By analysing Aave protocol, we find illiquidity risks can affect LPs. Besides, some users with dual roles, i.e., borrowers and depositors, have complex influence on LPs
Titel: |
Illiquidity Risks in Lending Protocols [LPs] : Evidence from Aave Protocol
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Autor/in / Beteiligte Person: | Sun, Xiaotong |
Quelle: | 2021; (2021) |
Veröffentlichung: | [S.l.]: SSRN, 2021 |
Medientyp: | Elektronische Ressource |
DOI: | 10.2139/ssrn.3985105 |
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