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

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  • Kevin Zhao

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.

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Handle: RePEc:ofr:ofrblg:23-01
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File URL: https://www.financialresearch.gov/the-ofr-blog/2023/02/07/ofr-identifies-three-ways-defi-growth-could-threaten-financial-stability/
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