The Bank of Canada working paper series presents another deep dive into complex crypto questions.
The Bank of Canada has released a working paper that examines lending protocols in decentralized finance with regard to sources of instability and their relation to crypto asset prices. Its findings point to potential ways to optimize DeFi lending platforms, or possibly the practical limits of decentralization.“On the Fragility of DeFi Lending” and released Feb. 22, acknowledged the inclusiveness DeFi offers and the advantages of smart contract protocols over the use of human discretion.
That is because borrowers are at least aware of the quality of the assets they used a loan collateral. Moreover, “Only tokenized assets can be pledged as collateral, and such assets tend to exhibit very high price volatilities.” Price and liquidity produce a feedback loop, the paper argued: the price of an asset affects borrowing volume and that, in turn, affects asset price.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Reconsidering Fragility in Museums—and the WorldNew today, from SAPIENS Following climate protests at art museums, a conservator considers museums’ role in the unsustainable exploitation of nature and cultural heritage.
Les mer »
Forsage Founders Indicted for $340M Ponzi Scheme Masquerading as DeFi PlatformFour Russian nationals who founded Forsage were indicted for running a $340 million Ponzi scheme that portrayed itself as a DeFi investing platform, according to TheJusticeDept. inkbacker reports
Les mer »
Forsage founders indicted over $340M DeFi ‘Ponzi scheme’Founders of DeFi platform Forsage have been indicted by a federal grand jury in the District of Oregon. The platform is accused of being a 'global Ponzi and pyramid scheme' which milked $340 million from investors.
Les mer »
DeFi Liquidity Protocol Synthetix Deploys Version 3 on EthereumOn-chain liquidity and derivatives trading protocol Synthetix_io has deployed version 3 (v3) on the Ethereum mainnet following security audits. By shauryamalwa.
Les mer »