Elgar Companion to Decentralized Finance, Digital Assets, and Blockchain Technologies

Edited by Henrik Cronqvist, The George L. Argyros School of Business and Economics, Chapman University, US and Desiree-Jessica Pely, Institute for Capital Markets and Corporate Finance, Ludwig-Maximilians-Universität München, Germany

• ContentsIntroduction to The Elgar Companion to Decentralized Finance,Digital Assets, and Blockchain Technologies 1Henrik Cronqvist and Desiree-Jessica Pely1 DeFi: an overview of use cases and a status quo analysis of theecosystem 5Anies Khan and Philipp Sandner2 Decentralized lending 35Felix Irresberger, Kose John, and Fahad Saleh3 Ready P(l)ayer One: how we will pay tomorrow and what rolecrypto may play 57Dirk Bullmann4 Economic policy, regulation, and cryptocurrencies 75Marco Fama, Lucio Gobbi, and Stefano Lucarelli5 Central bank digital currencies in emerging economies:practical considerations 96Gordon Clarke and Emir Hrnjic6 Utility tokens, Markets in Crypto Assets Regulation (MiCAR),and the costs of being public 113David Florysiak7 A minting mold for the eFranc 127Hans Gersbach and Roger Wattenhofer8 Lessons from a decade of cryptocurrency hacks, 2011–2021 147Ben Charoenwong and Mario Bernardi9 Financial economics of automated market makers 167Alexander Brauneis, Roland Mestel, and Martin Rauch10 Systematization of knowledge: constant function market makers 191Michele Fabi, Myriam Kassoul, and Julien Prat11 Systematization of knowledge: mechanism design and theEthereum blockchain transaction fee market 217Fernando Molina and Pablo Roccatagliata12 Systematization of knowledge: the advent of a new incentive,maximal extractable value 241Burak Öz and Felix Hoops13 From scalability to cross-chain DeFi 265Marcel Kaiser14 Non-fungible tokens (NFTs) 280Mieszko Mazur and Efstathios Polyzos15 The environmental, social, and governance (ESG) aspects of Bitcoin 298Andrew Urquhart16 Regenerative finance: a crypto-based approach for a sustainable future 313Eva Meyer, Isabell Welpe, Philipp Sandner, and Mathias Ponte17 Decentralized finance in the developing world: the end of thefinancial inclusion gap? 327Mariana Carmona and Paz Gomez

‘Decentralized finance or DeFi offers the possibility of financial inclusion, increased efficiency and security, unprecedented transparency, and interoperability of all protocols. DeFi represents a fundamental reconstruction of our financial system. This comprehensive volume enables readers to understand the scope of this technology and to join this historic innovation.’