kaal:claim:3782216-023

Decentralized derivatives must be capitalized at least fully because the platform and its anonymous users cannot be trusted, a requirement that would be impossibly onerous in traditional markets and that leaves the market for decentralized options extremely shallow.

Source quote, verbatim

the inability to trust the platform or the anonymous users requires these decentralized derivatives to be capitalized at least c::%, which would be impossibly onerous in traditional markets.

From

Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021), The basic financial markets
https://ssrn.com/abstract=3782216 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216

Holds when

decentralized options and derivatives markets at the time of writing

Classification

failuresupport: arguedfailure: derivatives overcollateralizationfamily: liquidity-and-market-structure-failurereputationdefi

Verify

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Attestation record: colloquium/attestations/8c296a8308cb56f6...json
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