Unveiling Risks in Decentralized Finance: A Systematic Literature Review

Abstract

The present study aims to map the existing intellectual structure on Decentralized Finance (DeFi) risks.The study utilizes the systematic literature review (SLR) method to identify DeFi risks and the Scopus database to retrieve the pertinent literature.Further, authors select 50 research articles through abstract and title scanning, complete text analysis, and citation chaining to perform content analysis.Using content analysis, the present study identifies 21 DeFi risks segregated into four categories, namely technical, macro-economic, legal and regulatory, and user-centric risks.Additionally, the study provides unique research directions for the future.Hence, the present study contributes to the DeFi literature and has practical implications for DeFi entrepreneurs, individuals, developers, programmers, and policymakers.The study is the first of its kind that consolidates pertinent risks related to DeFi using the SLR method and broadens the knowledge of stakeholders in the DeFi ecosystem.