Concentration of DeFi’s liquidity: Evidence from Decentralised Exchanges (DEXs) and Automated Market Makers (AMMs)

Iota Kaousar Nassr, Eleftheria Kostika and Anastasia Melachrinos

No 49, OECD Working Papers on Finance, Insurance and Private Pensions from OECD Publishing

Abstract: Decentralised exchanges (DEXs) are on-chain platforms where traders can exchange one crypto-asset for another. DEXs play an increasingly important role in the decentralised finance (DeFi) market, particularly in the aftermath of the recent downturn in the crypto-asset market. This working paper explores the characteristics of DEXs and identifies areas of possible concentration in decentralised exchanges activity and potential associated risks. To substantiate the analysis, it uses an original on-chain dataset covering the largest DEXs. The paper reveals an increased concentration within DeFi trading in the sample observed, which could exacerbate vulnerabilities already present in DeFi markets.

Date: 2024-04-25
New Economics Papers: this item is included in nep-mac, nep-mst and nep-pay
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1787/4ed08440-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:dafaad:49-en

Access Statistics for this paper

More papers in OECD Working Papers on Finance, Insurance and Private Pensions from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().