Risk Management

, volume 25 , issue 2 , publication number 13

Risk analysis in decentralized finance (DeFi): a fuzzy-AHP approach

Sandeepa Kaur ¹

Simarjeet Singh ²

Sanjay Gupta ³

Sangeeta Wats ⁴

Hide authors affiliations Show authors affiliations: 4 affiliations

Department of Management, Jagannath International Management School, New Delhi, India |

Great Lakes Institute of Management, Gurgaon, Gurugram, India |

Sri Aurobindo College of Commerce and Management, Ludhiana, Panjab University, Chandigarh, India |

⁴

School of Business Management, Narsee Monjee Institute of Management Studies University, (NMIMS University), Mumbai, India |

Publication type: Journal Article

Publication date: 2023-04-10

Springer Nature

Risk Management

scimago Q3

wos Q2

SJR: 0.346

CiteScore: 3.2

Impact factor: 1.7

ISSN: 14603799, 17434637

DOI: 10.1057/s41283-023-00118-0

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Strategy and Management

Economics and Econometrics

Finance

Business and International Management

Abstract

Decentralized finance is disrupting the financial ecosystem through innovative, transparent, and interoperable financial solutions. Based on distributed ledger technology, decentralized finance is a nascent and rapidly evolving area. Decentralized finance protocols are witnessing a perfect storm (in terms of growth). However, this emerging area needs sober consideration as these financial technologies possess unique risks for users, makers, regulators, and other stakeholders. The current research aims to identify and prioritize risks in decentralized finance. The present study conducted an extensive survey of the literature to identify various risks involved in decentralized finance. For empirical analysis, the study collected data from 90 experts. A fuzzy analytical hierarchical process (F-AHP) was applied to prioritize various risks in decentralized finance. Pairwise comparison and weights of all the criteria and sub-criteria revealed that technical risks are the most significant ones, followed by legal, regulatory, and financial risks. Among the sub-risks, financial risks are at the highest level, followed by smart contract risks and transaction risks. The outcomes of this research have several implications for regulators, policymakers, entrepreneurs, technologists, and practitioners. These stakeholders can focus on these vulnerabilities and offer more sustained solutions in the future.

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GOST Copy

Kaur S. et al. Risk analysis in decentralized finance (DeFi): a fuzzy-AHP approach // Risk Management. 2023. Vol. 25. No. 2. 13

GOST all authors (up to 50) Copy

Kaur S., Singh S., Gupta S., Wats S. Risk analysis in decentralized finance (DeFi): a fuzzy-AHP approach // Risk Management. 2023. Vol. 25. No. 2. 13

RIS |

Cite this

RIS Copy

TY - JOUR

DO - 10.1057/s41283-023-00118-0

UR - https://doi.org/10.1057/s41283-023-00118-0

TI - Risk analysis in decentralized finance (DeFi): a fuzzy-AHP approach

T2 - Risk Management

AU - Kaur, Sandeepa

AU - Singh, Simarjeet

AU - Gupta, Sanjay

AU - Wats, Sangeeta

PY - 2023

DA - 2023/04/10

PB - Springer Nature

IS - 2

VL - 25

SN - 1460-3799

SN - 1743-4637

ER -

BibTex

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BibTex (up to 50 authors) Copy

@article{2023_Kaur,

author = {Sandeepa Kaur and Simarjeet Singh and Sanjay Gupta and Sangeeta Wats},

title = {Risk analysis in decentralized finance (DeFi): a fuzzy-AHP approach},

journal = {Risk Management},

year = {2023},

volume = {25},

publisher = {Springer Nature},

month = {apr},

url = {https://doi.org/10.1057/s41283-023-00118-0},

number = {2},

pages = {13},

doi = {10.1057/s41283-023-00118-0}

}

Publisher

Springer Nature

Journal

Risk Management

scimago Q3

wos Q2

SJR

0.346

CiteScore

3.2

Impact factor

1.7

ISSN

14603799 (Print)

17434637 (Electronic)

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