Innovative Risk Management Solutions in DeFi: A Study of Tracking Platforms

Imran Shah

International Journal of Finance, Insurance and Risk Management, 2025, vol. 15, issue 3, 18-36

Abstract: Purpose: The rapid expansion of Decentralized Finance (DeFi) has revolutionized financial services by eliminating intermediaries and enabling peer-to-peer interactions through blockchain-based smart contracts. However, this innovation introduces significant risk management challenges, including smart contract vulnerabilities, transaction opacity, and compliance limitations. This study investigates the effectiveness of six leading DeFi tracking platforms—Chainalysis, Elliptic, Nansen, Dune Analytics, DeBank, and Etherscan—in mitigating these risks. Design/Methodology/Approach: Employing a mixed-methods approach, the research integrates survey data (n = 138), expert interviews, and platform metrics, analyzed through advanced statistical techniques such as T-Test, MANOVA, Logistic Regression, Kruskal–Wallis H Test, Cohen’s D Effect Size, Survival Analysis, Cluster Analysis, and a Utility-Based Scoring Model. Findings: Results reveal significant differences in platform performance, with Chainalysis and Etherscan emerging as top performers in compliance and usability, respectively. Practical Implications: This study provides a user-prioritized, data-driven framework for evaluating DeFi risk management platforms and offers actionable insights for developers, investors, and regulators seeking to enhance the transparency, security, and sustainability of the DeFi ecosystem. Originality/Value: The utility model highlights the importance of real-time alerts, trust, and compliance tools in platform adoption.

Keywords: Decentralized Finance (DeFi); risk management; tracking platforms; blockchain analytics; compliance tools; smart contracts; platform adoption; survival analysis; utility-based scoring; statistical modelling. (search for similar items in EconPapers)
JEL-codes: E42 G23 G28 G32 O33 (search for similar items in EconPapers)
Date: 2025
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Journal Article: Innovative Risk Management Solutions in DeFi: A Study of Tracking Platforms (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijfirm:v:15:y:2025:i:3:p:18-36

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