A multivocal literature review of decentralized finance: Current knowledge and future research avenues

Vincent Gramlich (), Tobias Guggenberger (), Marc Principato (), Benjamin Schellinger () and Nils Urbach ()
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Vincent Gramlich: FIM Research Center, University of Bayreuth
Tobias Guggenberger: FIM Research Center, University of Bayreuth
Marc Principato: FIM Research Center, University of Bayreuth
Benjamin Schellinger: FIM Research Center, University of Bayreuth
Nils Urbach: FIM Research Center, University of Bayreuth

Electronic Markets, 2023, vol. 33, issue 1, No 10, 37 pages

Abstract: Abstract While decentralized finance (DeFi) has the potential to emulate and, indeed, outperform existing financial systems, it remains a complex phenomenon yet to be extensively researched. To make the most of this potential, its practitioners must gain a rigorous understanding of its intricacies, as must information systems (IS) researchers. Against this background, this study uses a multivocal literature review to capture the state of research in DeFi. Thereby, we (1) present a consolidating definition of DeFi as we (2) analyze, synthesize, and discuss the current state of knowledge in the field of DeFi. We do so while adapting the blockchain research framework proposed by (Risius and Spohrer, Business & Information Systems Engineering 59:385–409, 2017). Furthermore, we (3) identify gaps in the literature and indicate future research directions in DeFi. Even though our findings highlight several shortcomings in DeFi that have prevented its widespread adoption, our literature review shows a large consensus on DeFi’s many promising features and potential to complement the traditional financial system. To that end, this paper is presented to encourage further research to mitigate the current risks of DeFi, the payoff of which will be an enriched financial ecosystem.

Keywords: Blockchain; Crypto Finance; DeFi; Literature review; Research agenda; Smart contracts (search for similar items in EconPapers)
JEL-codes: G15 G23 O33 O34 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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DOI: 10.1007/s12525-023-00637-4

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