Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299321 
Year of Publication: 
2023
Series/Report no.: 
Queen’s Economics Department Working Paper No. 1509
Publisher: 
Queen's University, Department of Economics, Kingston (Ontario)
Abstract: 
Decentralized Finance (DeFi) is composed of a variety of heterogeneous sectors that are interconnected through an input-output network of its tokens. We use a panel data set to empricially document the evolution of the DeFi network across its different sectors. We then employ a standard, theoretical production-network model to measure the value added and service outputs of different DeFi sectors which is fundamentally different from the commonly used metric of Total Value Locked (TVL). Our calibrated model is then used to study DeFi token prices and to predict the equilibrium effects of increasing network interconnectedness.
Subjects: 
Blockchain
Crypto
Decentralized Finance
Production Network
JEL: 
G2
L14
Document Type: 
Working Paper

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