Interest Rate as a Key Parameter in Decentralized Financial Systems
( Pp. 140-145)
More about authors
Nikita A. Kolobanov
postgraduate student
Financial University under the Government of the Russian Federation
Moscow, Russian Federation Ilona V. Tregub Dr. Sci. (Econ.), Professor, Professor at the Department of Business Informatics, Faculty of Information Technology and Big Data Analysis
Financial University under the Government of the Russian Federation
Moscow, Russian Federation
Financial University under the Government of the Russian Federation
Moscow, Russian Federation Ilona V. Tregub Dr. Sci. (Econ.), Professor, Professor at the Department of Business Informatics, Faculty of Information Technology and Big Data Analysis
Financial University under the Government of the Russian Federation
Moscow, Russian Federation
Abstract:
Decentralized lending is one of the key services in the field of decentralized finance. Due to its specifics, DeFi attracts participants all over the world, allowing you to fully take advantage of blockchain technologies. This article presents arguments emphasizing the key importance of interest rates in shaping the behavior of participants, allocating resources, and balancing supply and demand of financial products and services. The article also examines the impact of interest rates on the stability and efficiency of decentralized financial systems. In addition, it examines various approaches to setting interest rates in these ecosystems, including market mechanisms and algorithmic models.
How to Cite:
Kolobanov N. A., Tregub I. V. Interest Rate as a Key Parameter in Decentralized Financial Systems // ECONOMIC PROBLEMS AND LEGAL PRACTICE. 2024. Vol. 20. № 3. P. 140-145. (in Russ.) DOI: 10.33693/2541-8025-2024-20-3-140-145. EDN: CCMZVD
Reference list:
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Belyaeva D.M. Decentralization of financial markets and instruments, Its consequences // Skif. 2021. №11 (63). URL: https://cyberleninka.ru/article/n/detsentralizatsiya-finansovyh-rynkov-i-instrumentov-eyo-posledstviya.
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Amit Chaudhary, Roman Kozhan, Ganesh Viswanath-Natraj Interest rate rules in decentralized finance: Evidence from Compound.
Cohen, Samuel N. and Sánchez-Betancourt, Leandro and Szpruch, Lukasz The Economics of Interest Rate Models in Decentralised Lending Protocols (November 20, 2023). Available at SSRN: https://ssrn.com/abstract=4638390 or http://dx.doi.org/10.2139/ssrn.4638390.
Chaudhary A., Kozhan R., Viswanath-Natraj G. Interest rate parity in decentralized finance //WBS Finance Group Research Paper Forthcoming. —2023.
Bartoletti M., Chiang J. H., Lafuente A. L. SoK: lending pools in decentralized finance //Financial Cryptography and Data Security. FC 2021 International Workshops: CoDecFin, DeFi, VOTING, and WTSC, Virtual Event, March 5, 2021, Revised Selected Papers 25. —Springer Berlin Heidelberg, 2021. —С. 553–578.
Gudgeon L. et al. Defi protocols for loanable funds: Interest rates, liquidity and market efficiency //Proceedings of the 2nd ACM Conference on Advances in Financial Technologies. —2020. —P. 92–112.
The report of the Russian national Bank «Decentralized Finance», Moscow, 2022; URL: https://cbr.ru/Content/Document/File/141992/report_07112022.pdf.
Belyaeva D.M. Decentralization of financial markets and instruments, Its consequences // Skif. 2021. №11 (63). URL: https://cyberleninka.ru/article/n/detsentralizatsiya-finansovyh-rynkov-i-instrumentov-eyo-posledstviya.
A. Aspembitova «Dynamic Interest Rate Model Based on Control Theory», URL: https://members.delphidigital.io/reports/dynamic-interest-rate-model-based-on-control-theory?utm_source=link&utm_medium=portal.
Amit Chaudhary, Roman Kozhan, Ganesh Viswanath-Natraj Interest rate rules in decentralized finance: Evidence from Compound.
Cohen, Samuel N. and Sánchez-Betancourt, Leandro and Szpruch, Lukasz The Economics of Interest Rate Models in Decentralised Lending Protocols (November 20, 2023). Available at SSRN: https://ssrn.com/abstract=4638390 or http://dx.doi.org/10.2139/ssrn.4638390.
Chaudhary A., Kozhan R., Viswanath-Natraj G. Interest rate parity in decentralized finance //WBS Finance Group Research Paper Forthcoming. —2023.
Bartoletti M., Chiang J. H., Lafuente A. L. SoK: lending pools in decentralized finance //Financial Cryptography and Data Security. FC 2021 International Workshops: CoDecFin, DeFi, VOTING, and WTSC, Virtual Event, March 5, 2021, Revised Selected Papers 25. —Springer Berlin Heidelberg, 2021. —С. 553–578.
Keywords:
blockchain, decentralized credit protocols, digital economy, digital financial assets..
