Decentralized Finance—A systematic literature review and research directions

Download This Paper Open PDF in Browser Add Paper to My Library Share: Permalink Using these links will ensure access to this page indefinitely Copy URL Decentralized Finance—A systematic literature review and research directions 19 Pages Posted: 28 Jan 2022 See all articles by Eva MeyerEva MeyerTechnische Universität München (TUM)Isabell M. WelpeTechnische Universität München (TUM) - School of ManagementPhilipp G. SandnerFrankfurt School of Finance & Management Date Written: November 17, 2021 Abstract Decentralized Finance (DeFi) is the (r)evolutionary movement to create a solely code-based, intermediary-independent financial system—a movement which has grown from $4bn to $104bn in assets locked in the last three years. We present the first systematic literature review of the yet fragmented DeFi research field. By identifying, analyzing, and integrating 83 peer-reviewed DeFi-related publications, our results contribute fivefold. First, we confirm the increasing growth of academic DeFi publications through systematic analysis. Second, we frame DeFi-related literature into three levels of abstraction (micro, meso, and macro) and seven subcategories. Third, we identify Ethereum as the blockchain in main academic focus. Fourth, we show that prototyping is the dominant research method applied whereas only one paper has used primary research data. Fifth, we derive four prioritized research avenues, namely concerning i) DeFi protocol interaction and aggregation platforms, ii) decentralized off-chain data integration to DeFi, iii) DeFi agents, and iv) regulation. Keywords: Decentralized Finance, DeFi, Literature Review, Research Directions, Blockchain JEL Classification: G23, O31 Suggested Citation: Suggested Citation Meyer, Eva and Welpe, Isabell M. and Sandner, Philipp, Decentralized Finance—A systematic literature review and research directions (November 17, 2021). Available at SSRN: https://ssrn.com/abstract=4016497 Eva Meyer (Contact Author) Technische Universität München (TUM) ( email ) Arcisstrasse 21Munich, DE 80333Germany Isabell M. Welpe Technische Universität München (TUM) - School of Management ( email ) Leopoldstrasse 139Munich, 80804Germany++49/89/289-24800 (Phone)++49/89/289-24805 (Fax) HOME PAGE: http://www.strategie.wi.tum.de Philipp Sandner Frankfurt School of Finance & Management ( email ) Adickesallee 32-34Frankfurt am Main, 60322Germany HOME PAGE: http://www.philipp-sandner.de Download This Paper Open PDF in Browser Do you have a job opening that you would like to promote on SSRN? 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