REVIEW 1 cited by
Liquidity Risks in Lending Protocols: Evidence from Aave Protocol
Not yet reviewed by Pith; the record is open.
This paper has not been read by Pith yet. Machine review is queued; the pith claim, tier, and objections will appear here once it completes.
SPECIMEN: schema-true, not a live event
T0 review · schema-true
One-sentence machine reading of the paper's core claim.
pith:XXXXXXXX · record.json · timestamp
Signed reviews
read the original abstract
Lending Protocols (LPs), as blockchain-based lending systems, allow any agents to borrow and lend cryptocurrencies. However, liquidity risks could occur, especially when salient loans are initiated by a particular group of borrowers. This paper proposes measurements of liquidity risks, focusing on both available liquidity and market concentration in LPs. By using Aave as a case study, we find that liquidity risks are highly volatile and show complex effects on Aave, and liquidity in Aave may affect across on-chain lending market. Compared to new users, regular users that repeatedly borrow cryptocurrencies may negatively affect Aave protocol, implying that user loyalty is a double-edged sword for LPs.
Forward citations
Cited by 1 Pith paper
-
Market Clearing with Semi-fungible Assets
Market clearing for divisible, partially ordered assets reduces to one convex program whose dual variables are prices and whose VCG-style payments are dominant-strategy incentive compatible.
Discussion (0). Continue with ORCID to comment.