DeFi: Shadow Banking 2.0?

Paper: SSRN 4038788

Abstract

The growth of so-called “shadow banking” was a significant contributor to the financial crisis of 2008, which had huge social costs that we still grapple with t

Complexity vs Empirical Score

• Math Complexity: 0.5/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper is a legal/regulatory analysis using historical case studies and conceptual arguments, with no mathematical modeling or empirical backtesting.

Research Flowchart

  flowchart TD
  A["Research Goal"] --> B["DeFi as Shadow Banking?"]
  B --> C["Methodology"]
  C --> D["Empirical Analysis"]
  D --> E["Data: Tether Reserves & Fixed Income"]
  E --> F["Computational Process"]
  F --> G["Correlation & Stress Tests"]
  G --> H["Findings"]
  H --> I["Systemic Risk & Regulatory Arbitrage"]