Stylized Facts of Decentralized Finance (DeFi)

Abstract

Decentralized Finance (DeFi) represents an emerging sector within the cryptocurrency space. DeFi is currently one of the most groundbreaking and disruptive technologies impacting upon the centralized finance systems, bringing with it many distinctive features and huge potential. In this chapter, we present stylized facts on DeFi and shed light on the broader empirical features of market efficiency, volatility clustering, leverage effects, and the return volume relationship of this market.