Quentin Vandeweyer
Quentin.Vandeweyer@chicagobooth.edu
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https://www.chicagobooth.edu/faculty/directory/v/quentin-vandeweyer
Featured Work
Aug 12, 2025
Equilibrium in a DeFi Lending Market
We develop a model of Decentralized Finance (DeFi) lending platforms that set interest rates as programmable functions of the utilization of available funds. These platforms are unable to incorporate off-chain information into the platform’s interest rates, leading to inefficient DeFi equilibria that feature excess demand or supply. Absent uncertainty about withdrawals, these inefficiencies can be made arbitrarily small through an interest rate function that is...