Staff Analytical Note 2023-15 (English)

October 2023

Applicationlayer Decentralizedexchanges Lendingprotocols Assetmanagement Nativetokens Stablecoins Non-fungible tokens Assetlayer Settlementlayer Blockchain(e.g., Ethereum)

Figure 2: An example of decentralized finance lending

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Figure 2: An example of decentralized finance lending

a. Initiation of loan b. Collateral is released when loan is repaid c. Collateral is liquidated when loan is not repaid

DOI: https://doi.org/10.34989/san-2023-15