Concentration of DeFi’s liquidity
Evidence from Decentralised Exchanges (DEXs) and Automated Market Makers (AMMs)
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.
Available from April 25, 2024
In series:OECD Working Papers on Finance, Insurance and Private Pensionsview more titles