Systemic risk in decentralized lending.

Project: Research Project

Project Details


Overall objective:

Develop and apply a framework to quantify systemic risk within decentralized lending and related protocols.

-Map the interconnections among decentralized lending protocols, related protocols and relevant participants.

-Design a conceptual approach to identify nodes of systemic importance among the network of collateralized lending and investing.

-Formulate stress scenarios on the network that are consistent with the empirical behavior of crypto-asset prices and the behavior of network participants.

-Identify mechanism to mitigate systemic risk that can be implemented by the lending, related protocols, and other market participants.


Decentralized finance, blockchain, collateralized loans, systemic risk.

Commitments / Obligations

1. A graduate research assistant will be part of the project. This research assistant will be financed by the Young Researchers Program of the Faculty of Economics.

2.Organize a half-day workshop on Decentralized Finance in Latin America. The workshop will be co-organized with the Financial Laboratory of the Universidad del Rosario and Colombia Fintech.

3. Working paper to be presented at at least one international conference and to be sent to an academic journal in the field.
Effective start/end date10/18/2212/11/23

UN Sustainable Development Goals

In 2015, UN member states agreed to 17 global Sustainable Development Goals (SDGs) to end poverty, protect the planet and ensure prosperity for all. This project contributes towards the following SDG(s):

  • SDG 1 - No Poverty
  • SDG 10 - Reduced Inequalities

Main Funding Source

  • Competitive Funds
  • Seed Capital


  • Bogotá D.C.


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