We are looking for Main Discussants for Block#10! In the next BGIN event, we are (partially) opening up Main Discussant positions to anybody willing to share and discuss ‘Transparency of dApps and Sound DeFi’ based on research papers, white papers, and reports that have been published or new ideas/suggestions from you! Please feel free to share your ideas and suggestions below. We are looking forward to your contribution!!
Related Doc Suggestion: Genuine DeFi as Critical Infrastructure: A Conceptual Framework for Combating Illicit Finance Activity in Decentralized Finance
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Other resources for discussion:
U.S. Commodity Futures Trading Commission (CFTC) Technology Advisory Committee (TAC) Report on DeFi, https://www.cftc.gov/media/10106/TAC_DeFiReport010824/download
Whole paper, but especially Annex C (Data Gaps): IOSCO Policy Recommendations for Decentralized Finance (DeFi), Consultation Report, https://www.iosco.org/library/pubdocs/pdf/IOSCOPD744.pdf
General flow aimed for discussion, based on time available:
Main discussants: Carole House, Fletcher Roberts (Hashlock), Chengyi Ong (Chainalysis) , Nikos Andrikogiannopoulos (Metrika)
Introduction (~2 minutes): Carole introduces the panel, underscores issues of transparency, availability of usable data and regtech, elements of soundness, implications in DeFi.
Panelist Opening Remarks (1-2 minutes/speaker): Each speaker will introduce yourself, your background related to DeFi and dApps, and share very brief remarks about key issues you feel need to be examined to addressed or examined to achieve necessary transparency and soundness in dApps.
Q&A:
- Transparency
- Discussion around what transparency means in certain contexts - for countering illicit finance? For informing consumers? For business counterparties? For supervisors and law enforcement?
- How transparent are DApps? What information is visible in different forms of DApps? What is the state of regtech in developing to leverage that transparency? How do different implementations of DApps affect this?
- Discuss IOSCO defining of data gaps (see Annex C of their report). What is the cause of limited transparency? Asymmetry of information? What is the impact of getting transparency wrong (with too much or too little)? How to address?
- Soundness
- What is soundness? (for example: capital adequacy, asset quality, earnings and profitability, liquidity, operational safety and resilience [cyber, fraud, availability, delivery], market integrity)
- How sound are dApps? What mechanisms is DeFi implementing to improve soundness? What is missing?
- How do we assess and improve soundness in TradFi? What lessons can we import into dApps?
- What are the features of dApps that can most greatly impact soundness? (for example: hard-wired procyclicality or algorithmic failures?) Are there different design choices or compliance mechanisms that can be built-in or be included for governance to address the risks?
- Next Steps - Discussion of what gov’t, industry, and academia should do