BIS proposes research model to study DeFi’s integration with TradFi and its risks By Cointelegraph

The Bank for International Settlements looked under the hood of decentralized finance (DeFi) in a new working paper and introduced the DeFi stack reference (DSR) model to illustrate the technology’s functionality and risks. The report discussed the integration of DeFi with traditional finance and suggested ways to assess its risks during that integration.

The paper examined the architecture, technical primitives and functionalities of DeFi protocols in considerable technical detail. “A deep understanding of DeFi is still lacking in many circles,” the authors wrote, “which calls for a specific framework for an improved working knowledge of the technology.”