Risk Spotlight: OFR Identifies Three Ways DeFi Growth Could Threaten Financial Stability

Kevin Zhao

No 23-01, The OFR Blog from Office of Financial Research, US Department of the Treasury

Abstract: If decentralized finance (DeFi) continues to grow in size and scope, and if it continues to lack the guardrails that exist for traditional finance, then it could become a threat to financial stability. This blog post summarizes three channels through which threats could emerge in the DeFi market.

Date: 2023-02-07
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