DecentralizedFinance: On Blockchain- and Smart Contract-Based Financial Markets

ArXiv ID: ssrn-3843844 “View on arXiv”

Authors: Unknown

Abstract

The term decentralized finance (DeFi) refers to an alternative financial infrastructure built on top of the Ethereum blockchain. DeFi uses smart contracts to cr

Keywords: Decentralized Finance (DeFi), Smart Contracts, Blockchain, Ethereum, Tokenomics, Crypto

Complexity vs Empirical Score

• Math Complexity: 1.0/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: The paper is a survey and introduction to DeFi architecture with conceptual frameworks and qualitative descriptions, containing no advanced mathematics, models, or statistical analysis, and it lacks backtest-ready data, implementation details, or empirical results.

  flowchart TD
    A["Research Goal:<br>Understanding DeFi Infrastructure"] --> B{"Methodology"};
    
    B --> C["Data Collection:<br>Ethereum Blockchain Logs"];
    B --> D["Analysis:<br>Smart Contract Code Review"];
    
    C --> E["Computational Analysis:<br>Tokenomics & Gas Fee Models"];
    D --> E;
    
    E --> F["Key Findings:<br>1. Automated Market Makers<br>2. Lending Protocols<br>3. Composability Risks"];