Innovative Risk Management Solutions in DeFi: A Study of Tracking Platforms

Abstract

Purpose:This study provides a user-prioritized, data-driven framework for evaluating DeFi risk management platforms and offers actionable insights for developers, investors, and regulators seeking to enhance the transparency, security, and sustainability of the DeFi ecosystem.Design/Methodology/Approach: This study investigates the effectiveness of six leading DeFi tracking platforms-Chainalysis, Elliptic, Nansen, Dune Analytics, DeBank, and Etherscan-in mitigating these risks.Employing a mixed-methods approach, the research integrates survey data (n = 138), expert interviews, and platform metrics, analyzed through advanced statistical techniques such as T-Test, MANOVA, Logistic Regression, Kruskal-Wallis H Test, Cohen's D Effect Size, Survival Analysis, Cluster Analysis, and a Utility-Based Scoring Model.Findings: Results reveal significant differences in platform performance, with Chainalysis and Etherscan emerging as top performers in compliance and usability, respectively.Practical Implications: The rapid expansion of Decentralized Finance (DeFi) has revolutionized financial services by eliminating intermediaries and enabling peer-to-peer interactions through blockchain-based smart contracts.However, this innovation introduces significant risk management challenges, including smart contract vulnerabilities, transaction opacity, and compliance limitations.Originality value: The utility model highlights the importance of real-time alerts, trust, and compliance tools in platform adoption.