About this document
SSRN 4437706 by markosovs is a document available to read on EtoBox.
This paper analyzes the determinants of interest rates in decentralized finance (DeFi) lending protocols, highlighting their use for leveraged trading in the cryptocurrency market. It finds a weak correlation between interest rate differentials and futures premiums, suggesting limited market integration due to high trading costs and price impacts. The study concludes that while DeFi lending protocols are primarily used for leverage trading, the relationship between interest rates and speculative beliefs is
- Author
- markosovs
- Language
- EN