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SoK: Decentralized Finance (DeFi)

Open access
Werner, Sam, Perez, Daniel, Gudgeon, Lewis, Klages-Mundt, Ariah, Harz, Dominik, Knottenbelt, William·2022·Proceedings of the 4th ACM Conference on Advances in Financial Technologies

Abstract

Decentralized Finance (DeFi), a blockchain powered peer-to-peer financial system, is mushrooming. Two years ago the total value locked in DeFi systems was approximately 700m USD, now, as of April 2022, it stands at around 150bn USD. The frenetic evolution of the ecosystem has created challenges in understanding the basic principles of these systems and their security risks. In this Systematization of Knowledge (SoK) we delineate the DeFi ecosystem along the following axes: its primitives, its operational protocol types and its security. We provide a distinction between technical security, which has a healthy literature, and economic security, which is largely unexplored, connecting the latter with new models and thereby synthesizing insights from computer science, economics and finance. Finally, we outline the open research challenges in the ecosystem across these security types.

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Metadata

Authors
Werner, S., Perez, D., Gudgeon, L., Klages-Mundt, A., Harz, D., & Knottenbelt, W.
Venue
Proceedings of the 4th ACM Conference on Advances in Financial Technologies
Publisher
ACM
Published
2022-09-19
Pages
30-46
OpenAlex
W3123503292
Cited by
404
References
61
FWCI
72.85
Type
conference paper
Language
en
Open access
gold

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CoChat. (2026). Citation check: SoK: Decentralized Finance (DeFi). https://app.cochat.ai/papers/10.1145/3558535.3559780
The paper
Werner, S., Perez, D., Gudgeon, L., Klages-Mundt, A., Harz, D., & Knottenbelt, W. (2022). SoK: Decentralized Finance (DeFi). Proceedings of the 4th ACM Conference on Advances in Financial Technologies. https://doi.org/10.1145/3558535.3559780

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