Gillmore Centre Seminar on Equilibrium in a Decentralized Finance Lending Market

Hosted by Ruslan SverchkovLink opens in a new window - Assistant Professor of Finance at Warwick Business School

Speaker: Fahad SalehLink opens in a new window is an Associate Professor of Finance and the Nunnenkamp-Cinelli Faculty Fellow at Wake Forest University.

Fahad will examine a lending platform on blockchain. Notably, a blockchain lending platform suffers a disadvantage relative to a traditional lending platform in that a blockchain lending platform is unable to incorporate off-chain information when setting borrowing and lending rates. He will demonstrate that the referenced disadvantage implies that a blockchain lending equilibrium is sub-optimal when compared to a competitive lending market equilibrium. Also, offer a modification of the blockchain interest rate setting specification and demonstrate that this modification generates equilibrium interest rates, and therefore welfare, that is arbitrarily close to a competitive lending market equilibrium.

The Strategy Networks will be two hour sessions, for in person or online attendance and open to all staff.

Each of the monthly slots will cover an update on one of the strategic priorities by each area lead and include time for questions.