Maximizing the Time Value of Cryptocurrency in Smart Contracts with Decentralized Money Markets

Shao Ku Tien, Yu Ting Wang, Yun Zhan Cai, Meng Hsun Tsai

研究成果: Conference contribution同行評審

6 引文 斯高帕斯(Scopus)

摘要

Smart contracts on the Ethereum blockchain can be utilized as secure places to store cryptocurrency if they are designed carefully. However, while cryptocurrency is kept in smart contracts, such as being paid to a blockchain service, no extra profit is generated. The time value of cryptocurrency serves only as collateral, which is an issue of capital inefficiency. Therefore, we propose to maximize the time value of cryptocurrency in smart contracts by supplying it to decentralized money markets of Compound to earn supply interest. Furthermore, by utilizing the interest generated, we can mitigate the liquidity risk of Compound and thus do not diminish the flexibility of the original service much. Experiments are conducted to testify the proposed method, and the implementation cost is estimated to be 2.1 US dollars. We also discuss the potential systemic risk in the decentralized finance system.

原文English
主出版物標題Proceedings - 2020 IEEE International Conference on Blockchain, Blockchain 2020
發行者Institute of Electrical and Electronics Engineers Inc.
頁面503-508
頁數6
ISBN(電子)9780738104959
DOIs
出版狀態Published - 11月 2020
事件3rd IEEE International Conference on Blockchain, Blockchain 2020 - Virtual, Rhodes Island, Greece
持續時間: 2 11月 20206 11月 2020

出版系列

名字Proceedings - 2020 IEEE International Conference on Blockchain, Blockchain 2020

Conference

Conference3rd IEEE International Conference on Blockchain, Blockchain 2020
國家/地區Greece
城市Virtual, Rhodes Island
期間2/11/206/11/20

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