Decentralized Finance—A Systematic Literature Review and Research Directions

ECIS 2022 Research Papers. 25. https://aisel.aisnet.org/ecis2022_rp/25

21 Pages Posted: 28 Jan 2022 Last revised: 16 May 2022

See all articles by Eva Meyer

Eva Meyer

Technische Universität München (TUM)

Isabell M. Welpe

Technische Universität München (TUM) - School of Management

Philipp G. Sandner

Frankfurt School of Finance & Management

Date Written: 2022

Abstract

Decentralized Finance (DeFi) is the (r)evolutionary movement to create a solely code-based, intermediary-independent financial system—a movement which has grown from $4bn to $104bn in assets locked in the last three years. We present the first systematic literature review of the yet fragmented DeFi research field. By identifying, analyzing, and integrating 83 peer-reviewed DeFi-related publications, our results contribute fivefold. First, we confirm the increasing growth of academic DeFi publications through systematic analysis. Second, we frame DeFi-related literature into three levels of abstraction (micro, meso, and macro) and seven subcategories. Third, we identify Ethereum as the blockchain in main academic focus. Fourth, we show that prototyping is the dominant research method applied whereas only one paper has used primary research data. Fifth, we derive four prioritized research avenues, namely concerning i) DeFi protocol interaction and aggregation platforms, ii) decentralized off-chain data integration to DeFi, iii) DeFi agents, and iv) regulation.

Note: The paper is work in progress.

Keywords: Decentralized Finance, DeFi, Literature Review, Research Directions, Blockchain

JEL Classification: G23, O31

Suggested Citation

Meyer, Eva and Welpe, Isabell M. and Sandner, Philipp, Decentralized Finance—A Systematic Literature Review and Research Directions (2022). ECIS 2022 Research Papers. 25. https://aisel.aisnet.org/ecis2022_rp/25, Available at SSRN: https://ssrn.com/abstract=4016497 or http://dx.doi.org/10.2139/ssrn.4016497

Eva Meyer (Contact Author)

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

Isabell M. Welpe

Technische Universität München (TUM) - School of Management ( email )

Leopoldstrasse 139
Munich, 80804
Germany
++49/89/289-24800 (Phone)
++49/89/289-24805 (Fax)

HOME PAGE: http://www.strategie.wi.tum.de

Philipp Sandner

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

HOME PAGE: http://www.philipp-sandner.de

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