Interest Rate as a Key Parameter in Decentralized Financial Systems

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Аннотация

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.

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Авторлар туралы

Nikita Kolobanov

Financial University under the Government of the Russian Federation

Хат алмасуға жауапты Автор.
Email: nakolobanov@fa.ru
ORCID iD: 0009-0001-4406-0481

postgraduate student

Ресей, Moscow

Ilona Tregub

Financial University under the Government of the Russian Federation

Email: itregub@fa.ru
ORCID iD: 0000-0001-7329-8344
SPIN-код: 2192-9453

Dr. Sci. (Econ.), Professor of the Department of Mathematics

Ресей, Moscow

Әдебиет тізімі

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  2. 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.
  3. The report of the Russian national Bank «Decentralized Finance», Moscow, 2022; URL: https://cbr.ru/Content/Document/File/141992/report_07112022.pdf.
  4. 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.
  5. 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.
  6. Amit Chaudhary, Roman Kozhan, Ganesh Viswanath-Natraj Interest rate rules in decentralized finance: Evidence from Compound.
  7. 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.
  8. Chaudhary A., Kozhan R., Viswanath-Natraj G. Interest rate parity in decentralized finance //WBS Finance Group Research Paper Forthcoming. —2023.
  9. 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.

Қосымша файлдар

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Әрекет
1. JATS XML
2. Fig. 1. The algorithm for calculating the interest rate using the PID controller.

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