Does DeFi Remove the Need for Trust? Evidence From a Natural Experiment in Stablecoin Lending

@article{Saengchote2022DoesDR,
  title={Does DeFi Remove the Need for Trust? Evidence From a Natural Experiment in Stablecoin Lending},
  author={Kanis Saengchote and Talis Putnicnvs and Krislert Samphantharak},
  journal={SSRN Electronic Journal},
  year={2022}
}
Decentralized Finance (DeFi) is built on a fundamentally different paradigm: rather than having to trust individuals and institutions, participants in DeFi potentially only have to trust computer code that is enforced by a decentralized network of computers. We examine a natural experiment that exogenously stress tests this alternative paradigm by revealing the identities of individuals associated with a DeFi protocol, including a convicted criminal. We find that, in practice, DeFi does not… 
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