Decentralized Finance (DeFi) has developed has an answer to instability issues that have plagued the traditional, centralized financial system (see “The Lehman Brothers Bankruptcy G: The Special Case of Derivatives”). You will detail those historical issues as well as the solutions that DeFi has proposed. You should focus your discussion by using the following papers: “DeFi Beyond the Hype The Emerging World of Decentralized Finance”, “Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets”, “Decentralized Finance: A Primer for Accounting Professionals”. You should explain how derivatives concepts also permeate the development of DeFi solutions.
Critically analyze and assess the answers that DeFi has proposed.
Critically analyze and assess the technological and regulatory challenges involved in DeFi applications.