kaal:claim:3782216-036

The inability of anonymous participants to trust one another is crippling the DeFi market and forces decentralized markets into overcollateralization, giving traditional markets a fundamental advantage.

Source quote, verbatim

the inability to trust each other due to the requirements of anonymity is crippling the deFi market. So traditional markets have a fundamental advantage. Decentralized markets are overcollateralized.

From

Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021), Summary
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

current decentralized markets, before decentralized reputation exists

Classification

failuresupport: arguedfailure: anonymity driven overcollateralizationfamily: liquidity-and-market-structure-failuredefireputation

Related claims

restated_by kaal:claim:3949098-001 Decentralized finance is structurally disadvantaged against traditional finance because decentralized products...

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