Money loan process in centralized finance vs. decentralized finance : a comparative study of Deutsche Bank, Aave and Compound
Kuzenkov, Georgii (2023)
Kuzenkov, Georgii
2023
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023121838223
https://urn.fi/URN:NBN:fi:amk-2023121838223
Tiivistelmä
Rapid-developing DeFi landscape has presented us an alternative to traditional banking insti- tutions. This study was conducted in order to compare Deutsche Bank, Aave and Compound loan models. The study has indicated possible benefits of using DeFi protocols over traditional banks; study has indicated possible risks of using DeFi protocols; traditional banking system is presented in a nutshell by one of the most influential banks on the current market. Data from traditional banks is considered to be rather representative, because of the bank’s individual-policy of creditworthiness and conditions non-disclosure, which may be secure and normalized, however it might be ineffective and non-transparent as well. DeFi protocols offer personal control over own funds without possibility of these funds ban, the exceptions exist in stablecoins policy though.