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Understanding DeFi through the lens of a production-network model / by Jonathan Chiu, Thorsten Koeppl, Hanna Yu and Shengxing Zhang.FB3-5/2023-42E-PDF

"Decentralized finance (DeFi) is composed of a variety of heterogeneous sectors that are interconnected through an input-output network of its tokens. We first use a panel data set to empirically document the evolution of the DeFi network across its different sectors. Instead of looking at the misleading measure of total value locked, we then employ a standard, theoretical production-network model to measure the value added and service outputs of the different DeFi sectors. Finally, based on a calibrated version of our model, we study which factors drive DeFi token prices and predict the equilibrium effects when network interconnectedness increases"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.927604&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleUnderstanding DeFi through the lens of a production-network model / by Jonathan Chiu, Thorsten Koeppl, Hanna Yu and Shengxing Zhang.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-42
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: August 15, 2023."
  • Includes bibliographical references.
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2023.
  • ©2023
Author / Contributor
  • Chiu, Jonathan, author.
Description1 online resource (ii, 36 pages) : charts.
Catalogue number
  • FB3-5/2023-42E-PDF
Subject terms
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