Contagion in Decentralized Lending Protocols: A Case Study of Compound - Archive ouverte HAL
Conference Papers Year : 2023

Contagion in Decentralized Lending Protocols: A Case Study of Compound

Abstract

We study financial contagion in Compound V2, a decentralized lending protocol deployed on the Ethereum blockchain. We explain how to construct the balance sheets of Compound's liquidity pools and use our methodology to characterize the financial network. Our analysis reveals that most users either borrow stablecoins or engage in liquidity mining. We then study the robustness of Compound through a series of stress tests, identifying the pools that are most likely to set off a cascade of defaults.

Domains

Economics and Finance Modeling and Simulation Social and Information Networks [cs.SI] Risk Management [q-fin.RM]
Fichier principal
Vignette du fichier
Contagion_ACM_DeFi_2023.pdf (1.36 Mo) Télécharger le fichier
network.png (420.84 Ko) Télécharger le fichier
Origin Files produced by the author(s)
Licence
Copyright

Natkamon Tovanich  : Connect in order to contact the contributor

https://hal.science/hal-04221228

Submitted on : Thursday, September 28, 2023-1:35:21 PM

Last modification on : Monday, September 30, 2024-11:04:16 AM

Long-term archiving on : Friday, December 29, 2023-7:03:46 PM

Download

Dates and versions

hal-04221228 , version 1 (28-09-2023)

Licence

Copyright

Identifiers

Cite

Natkamon Tovanich, Myriam Kassoul, Simon Weidenholzer, Julien Prat. Contagion in Decentralized Lending Protocols: A Case Study of Compound. Proceedings of the 2023 Workshop on Decentralized Finance and Security, ACM, Nov 2023, Copenhagen, Denmark. ⟨10.1145/3605768.3623544⟩. ⟨hal-04221228⟩

Export

BibTeX XML-TEI Dublin Core DC Terms EndNote DataCite

Collections

X GENES CNRS ENSAE CREST ENSAI TDS-MACS X-CREST IP_PARIS
344 View
768 Download

Altmetric

Share

More