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Decentralized Finance for Actuaries

Authors

Jen Houng (Erik) Lie, FSA, ZooFi Labs
Gwen Yun Weng, FSA, CFA, ZooFi Labs
Wai Chak Tse, ZooFi Labs

Description

Decentralized finance, or DeFi, is an emerging financial system powered by blockchain technology. This research report aims to introduce actuaries to DeFi and help them develop a solid understanding of DeFi. It will begin with addressing “what is DeFi?” by providing an introduction on blockchains and DeFi. It will then discuss in further detail the key characteristics, applications, opportunities, and risks of DeFi. After providing the foundation, this report will discuss the potential adoption of DeFi and its interaction with the current financial system (sometime referred to as traditional finance for contrast with DeFi), and the implications for practicing and aspiring actuaries. In addition, a glossary of terms used in DeFi and a brief history of the development of DeFi have been included in the appendix.

Report

Decentralized Finance for Actuaries

Podcast

Research Insights - Decentralized Finance for Actuaries

Research Insights - Research Focus Edition, Decentralized Finance for Actuaries   

Acknowledgments

The researchers’ deepest gratitude goes to those without whose efforts this project could not have come to fruition: the Project Oversight Group and others for their diligent work reviewing and editing this report for accuracy and relevance.

Project Oversight Group members:

Stephen Chan, PhD
Franck Pralas, AQ
Jared Praniewicz, FSA, MBA, PhD
Zachary Tirrell, FSA, FIAA
Yifan Zhang, FSA, MAAA

At the Society of Actuaries Research Institute:
David Schraub, FSA, MAAA, CERA, AQ, Senior Research Practice Actuary
Korrel Crawford, Senior Research Administrator

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