FINTECH THRUST SEMINAR | A Theory of Decentralized Money Creation
A Theory of Decentralized Money Creation
Abstract:
Tokens are used as an input into financial services, as a platform-specific medium of exchange, and as an asset that stores value. DeFi platforms have complex input-output linkages from locking tokens into smart contracts that provide financial services. In this paper, we measure value added and document network linkages, develop a model of decentralized money (token) creation in a production network model, and quantitatively assess the value of DeFi.
Shengxing Zhang is an Assistant Professor at the London School of Economics and Political Science, and a visiting Associate Professor at Peking University HSBC Business School. He will join Carnegie Mellon Tepper Business School this fall. His research interests include financial economics, monetary economics, and applications of the search and matching theory in macro and finance.