00000nam 2200000zi 4500 9.921953 CaOODSP 20230425150236 m o d f cr |n||||||||| 230425t20232023oncd ob f|0| 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- FB3-5/2023-14E-PDF Chiu, Jonathan, author. On the fragility of DeFi lending / by Jonathan Chiu, Emre Ozdenoren, Kathy Yuan andShengxing Zhang. [Ottawa] : Bank of Canada = Banque du Canada, 2023. ©2023 1 online resource (40 pages) : charts. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-14 "Last updated: February 22, 2023." Includes bibliographical references (pages 27-29). "We develop a dynamic model of decentralized finance (DeFi) lending that incorporates two/these key features: 1) borrowing and lending are decentralized, anonymous, overcollateralized and backed by the market value of crypto assets where contract terms are pre-specified and rigid; and 2) information friction exists between borrowers and lenders. We identify a price-liquidity feedback: the market outcome in any given period depends on agents’ expectations about lending activities in future periods, with higher price expectations leading to more lending and higher prices in that period"--Abstract. Includes abstract in French. Digital currency. Loans. Monnaie électronique. Prêts. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2023-14. (CaOODSP)9.806221 PDF 894 KB https://publications.gc.ca/collections/collection_2023/banque-bank-canada/FB3-5-2023-14-eng.pdf