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The BIS on the Two Key Ways DeFi Could Pose Risks to Financial Stability

Uniswap token market data on the Compound website.

Uniswap token market data on the Compound website.

Photographer: Gabby Jones/Bloomberg

The Bank for International Settlements has a new research piece out about DeFi, as part of its latest quarterly review. And once again, it shows the degree to which legacy institutions are taking this space very seriously.

The first thing to note is that the piece titled “DeFi risks and the decentralisation illusion”  is extremely good. Authors Sirio Aramonte, Wenqian Huang and Andreas Schrimpf have put together one of the best one-stop shops out there for people looking to brush up on the space. It’s also filled with original data and research on how decentralized finance actually works.