Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets

@article{Schr2020DecentralizedFO,
  title={Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets},
  author={Fabian Sch{\"a}r},
  journal={Review},
  year={2020}
}
This paper explores the Decentralized Finance (DeFi) ecosystem. We examine how DeFi is emerging on top of the public Ethereum smart contract platform, compare it to the centralized architecture of traditional financial markets and highlight opportunities and potential risks of this ecosystem. We propose a multi-layered framework to analyze the implicit architecture and the various DeFi building blocks, including token standards, decentralized exchanges, decentralized debt markets, blockchain… 
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