000	00000nam 2200000zi 4500
001	9.951207
003	CaOODSP
005	20250520114750
006	m     o  d f
007	cr |n|||||||||
008	250520t20252025oncd    ob   f|0| 0 eng d
040	|aCaOODSP|beng|erda|cCaOODSP
041	|aeng|beng|bfre
043	|an-cn---
086	1 |aFB3-5/2025-12E-PDF
100	1 |aTian, Phoebe, |eauthor.
245	10|aLiquidation mechanisms and price impacts in DeFi / |cPhoebe Tian [and] Yu Zhu.
264	1|a[Ottawa] : |bBank of Canada = Banque du Canada, |c2025.
264	4|c©2025
300	|a1 online resource (ii, 43 pages) : |bcharts.
336	|atext|btxt|2rdacontent
337	|acomputer|bc|2rdamedia
338	|aonline resource|bcr|2rdacarrier
490	1 |aStaff working paper = Document de travail du personnel, |y1701-9397 ; |v2025-12
500	|a"Last updated: March 21, 2025."
504	|aIncludes bibliographical references.
520	|a"This paper examines the price impacts of liquidations in decentralized finance (DeFi) lending and how they vary with fixed-spread and auction-based liquidation mechanisms. Using a theoretical framework, we show that the impact of these mechanisms depends on the liquidator participation cost, which determines the level of competition. Auctions mitigate the price impact of liquidations when the participation cost is low, but amplify them when it is high. Empirical analysis of Ethereum blockchain data shows that auction based liquidations lead to smaller price drops by increasing competition, which raises collateral prices and reduces liquidation volumes. These findings underscore the importance of liquidation design in promoting market stability and mitigating fire-sale risks in DeFi lending"--Abstract, page ii.
546	|aIncludes abstract in French.
650	0|aDigital currency.
650	0|aFintech.
650	6|aMonnaie électronique.
650	6|aTechnologie financière.
710	2 |aBank of Canada, |eissuing body.
830	#0|aStaff working paper (Bank of Canada)|v2025-12.|w(CaOODSP)9.806221
856	40|qPDF|s840 KB|uhttps://publications.gc.ca/collections/collection_2025/banque-bank-canada/FB3-5-2025-12-eng.pdf
856	4 |qHTML|sN/A|uhttps://doi.org/10.34989/swp-2025-12