{"product_id":"decentralizing-finance-isbn-9781394154975","title":"Decentralizing Finance","description":"\u003cp\u003e\u003cb\u003eA Practitioner's Guide to Decentralized Finance (DeFi), Digital Assets, and Distributed Ledger Technology\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eDecentralizing Finance: How DeFi, Digital Assets and Distributed Ledger Technology Are Transforming Finance\u003c\/i\u003e, blockchain and digital assets expert Kenneth Bok offers an insightful exploration of the current state of decentralized finance (DeFi). As distributed ledger technology (DLT) increasingly optimizes and democratizes financial ecosystems worldwide, this book serves as a comprehensive guide to the most salient aspects of the ongoing transformation.\u003c\/p\u003e \u003cp\u003eThe text delves into both crypto-native DeFi and DLT applications in regulated financial markets, providing:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eComprehensive analysis of crypto-native DeFi across key areas such as its competitive landscape, infrastructure, financial instruments, activities, and applications\u003c\/li\u003e \u003cli\u003eCoverage of key risks, mitigation strategies, and regulatory frameworks, analyzed through the perspective of international financial standard-setting bodies\u003c\/li\u003e \u003cli\u003eInsight into how DLT is reshaping traditional financial systems through innovations like central bank digital currencies (CBDCs), tokenized assets, tokenized deposits, and institutional-grade DeFi platforms\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIn a world where financial technology is rewriting the fundamental code of digital currency, the future of money is undeniably DLT-centric. How will this seismic shift interact with existing financial infrastructures? Can decentralization and traditional banking coexist and potentially synergize? This book endeavors to answer these pressing questions for financial professionals navigating these transformative times.\u003c\/p\u003e \u003cp\u003eAuthored by a former Goldman Sachs trader, past Head of Growth at Zilliqa, and an early Ethereum investor with extensive experience in both traditional finance and the crypto ecosystem, \u003ci\u003eDecentralizing Finance\u003c\/i\u003e provides you with an insider's perspective on the revolution that is DeFi.\u003c\/p\u003e \u003cp\u003eAcknowledgmentsxiii\u003c\/p\u003e \u003cp\u003eGlossary xv\u003c\/p\u003e \u003cp\u003eForeword xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIntroduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eI. 1 Who Am I? 2\u003c\/p\u003e \u003cp\u003eI. 2 How This Book Is Organized 3\u003c\/p\u003e \u003cp\u003eI. 3 Scope of This Book 4\u003c\/p\u003e \u003cp\u003eI. 4 Disclaimers 5\u003c\/p\u003e \u003cp\u003eI. 5 Corrections 5\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Crypto-native DeFi 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 What Is DeFi? 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 The Role of Intermediaries in TradFi 12\u003c\/p\u003e \u003cp\u003e1.2 Definitions 13\u003c\/p\u003e \u003cp\u003e1.3 Other Characteristics of DeFi 15\u003c\/p\u003e \u003cp\u003e1.4 The DeFi Stack 16\u003c\/p\u003e \u003cp\u003e1.5 Size of DeFi 18\u003c\/p\u003e \u003cp\u003e1.6 Key Participants in DeFi 19\u003c\/p\u003e \u003cp\u003e1.7 DeFi and FinTech 25\u003c\/p\u003e \u003cp\u003e1.8 How Can I Try DeFi? 27\u003c\/p\u003e \u003cp\u003e1.9 Where Does DeFi Meet TradFi? 28\u003c\/p\u003e \u003cp\u003e1.10 What Are the Risks of DeFi? 30\u003c\/p\u003e \u003cp\u003e1.11 Chapter Summary 31\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Infrastructure and Instruments 33\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 The Infrastructure of DeFi 33\u003c\/p\u003e \u003cp\u003e2.2 Basics of Blockchains 34\u003c\/p\u003e \u003cp\u003e2.3 Bitcoin and Ethereum 38\u003c\/p\u003e \u003cp\u003e2.4 Permissioned vs Public Blockchains 39\u003c\/p\u003e \u003cp\u003e2.5 L1s and L2s 41\u003c\/p\u003e \u003cp\u003e2.6 Accounts, Keys, Wallets, and Addresses 44\u003c\/p\u003e \u003cp\u003e2.7 Transactions 46\u003c\/p\u003e \u003cp\u003e2.8 Smart Contracts 48\u003c\/p\u003e \u003cp\u003e2.9 Clients and Nodes 49\u003c\/p\u003e \u003cp\u003e2.10 Block Explorers 50\u003c\/p\u003e \u003cp\u003e2.11 Custody 50\u003c\/p\u003e \u003cp\u003e2.12 Oracles 52\u003c\/p\u003e \u003cp\u003e2.13 RegTech 52\u003c\/p\u003e \u003cp\u003e2.14 Identity 52\u003c\/p\u003e \u003cp\u003e2.15 Bridges 52\u003c\/p\u003e \u003cp\u003e2.16 DeFi Instruments 53\u003c\/p\u003e \u003cp\u003e2.17 Stablecoins 55\u003c\/p\u003e \u003cp\u003e2.18 Derivatives 60\u003c\/p\u003e \u003cp\u003e2.19 Chapter Summary 61\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Activities and Applications 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Trading \/ DEXs 63\u003c\/p\u003e \u003cp\u003e3.2 Overcollateralized Lending \/ Borrowing 66\u003c\/p\u003e \u003cp\u003e3.3 Governance \/ DAOs 70\u003c\/p\u003e \u003cp\u003e3.4 Undercollateralized Lending 72\u003c\/p\u003e \u003cp\u003e3.5 Investing 82\u003c\/p\u003e \u003cp\u003e3.6 Payments 84\u003c\/p\u003e \u003cp\u003e3.7 Insurance 89\u003c\/p\u003e \u003cp\u003e3.8 Prediction Markets 91\u003c\/p\u003e \u003cp\u003e3.9 Chapter Summary 92\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Risks and Mitigation 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Types of Losses 96\u003c\/p\u003e \u003cp\u003e4.2 Basic Terminology 96\u003c\/p\u003e \u003cp\u003e4.3 Endogenous DeFi Risks 97\u003c\/p\u003e \u003cp\u003e4.4 Exogenous DeFi Risks 104\u003c\/p\u003e \u003cp\u003e4.5 Chapter Summary 118\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Regulation 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Introduction 121\u003c\/p\u003e \u003cp\u003e5.2 Global Nature of Crypto and DeFi 122\u003c\/p\u003e \u003cp\u003e5.3 What Regulators Want 124\u003c\/p\u003e \u003cp\u003e5.4 Are Tokens Securities? 125\u003c\/p\u003e \u003cp\u003e5.5 The Travel Rule 126\u003c\/p\u003e \u003cp\u003e5.6 Prudential Treatment of Crypto-asset Exposures 128\u003c\/p\u003e \u003cp\u003e5.7 SSBs, United States and European Union 131\u003c\/p\u003e \u003cp\u003e5.8 European Union – MiCA 136\u003c\/p\u003e \u003cp\u003e5.9 United States 140\u003c\/p\u003e \u003cp\u003e5.10 DeFi Specific Regulation 143\u003c\/p\u003e \u003cp\u003e5.11 Chapter Summary 147\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II DLT in Traditional Finance 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Central Bank Digital Currencies 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Introduction 153\u003c\/p\u003e \u003cp\u003e6.2 Prologue: Libra 155\u003c\/p\u003e \u003cp\u003e6.3 Role of the Central Bank 156\u003c\/p\u003e \u003cp\u003e6.4 Structure of the Monetary System and a View Towards the Future 157\u003c\/p\u003e \u003cp\u003e6.5 Central Bank Motivations and Considerations around CBDCs 158\u003c\/p\u003e \u003cp\u003e6.6 Retail vs Wholesale CBDCs 159\u003c\/p\u003e \u003cp\u003e6.7 Wholesale CBDCs 159\u003c\/p\u003e \u003cp\u003e6.8 Case Study: Project mBridge 163\u003c\/p\u003e \u003cp\u003e6.9 Retail CBDCs 165\u003c\/p\u003e \u003cp\u003e6.10 Benefits and Risks of R-CBDCs 167\u003c\/p\u003e \u003cp\u003e6.11 R-CBDC Design Choices 170\u003c\/p\u003e \u003cp\u003e6.12 Types of R-CBDCs 174\u003c\/p\u003e \u003cp\u003e6.13 Examples of R-CBDCs 177\u003c\/p\u003e \u003cp\u003e6.14 Case Study: Nigerian eNaira 178\u003c\/p\u003e \u003cp\u003e6.15 Case Study: United States 179\u003c\/p\u003e \u003cp\u003e6.16 Case Study: eCNY 数字人民币 181\u003c\/p\u003e \u003cp\u003e6.17 Chapter Summary 184\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Asset Tokenization 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 What Is Asset Tokenization? 187\u003c\/p\u003e \u003cp\u003e7.2 Benefits of Asset Tokenization 189\u003c\/p\u003e \u003cp\u003e7.3 How is Tokenization Performed? 192\u003c\/p\u003e \u003cp\u003e7.4 Considerations for Tokenization 193\u003c\/p\u003e \u003cp\u003e7.5 DLT in Capital Markets 194\u003c\/p\u003e \u003cp\u003e7.6 Asset Servicing 198\u003c\/p\u003e \u003cp\u003e7.7 Chapter Summary 200\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Deposit Tokens 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 What Are Deposit Tokens? 203\u003c\/p\u003e \u003cp\u003e8.2 Benefits of Deposit Tokens 205\u003c\/p\u003e \u003cp\u003e8.3 Deposit Token Projects 206\u003c\/p\u003e \u003cp\u003e8.4 Chapter Summary 211\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Institutional DeFi 213\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Considerations for Institutions to Participate in DeFi 213\u003c\/p\u003e \u003cp\u003e9.2 Institutional DeFi Examples 214\u003c\/p\u003e \u003cp\u003e9.3 AMMs and FX 218\u003c\/p\u003e \u003cp\u003e9.4 Considerations for AMMs and Tokenized Assets 220\u003c\/p\u003e \u003cp\u003e9.5 Unified Ledger 221\u003c\/p\u003e \u003cp\u003e9.6 Chapter Summary 222\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Conclusion 225\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 The Crypto–Fiat Innovation Dialectic 226\u003c\/p\u003e \u003cp\u003e10.2 Future Scenarios for DeFi: The Wild West, the Citadel, and the Bazaar 231\u003c\/p\u003e \u003cp\u003e10.3 The Future of Money 236\u003c\/p\u003e \u003cp\u003eBibliography and Online Resources 241\u003c\/p\u003e \u003cp\u003eIndex 243\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eKENNETH BOK\u003c\/b\u003e is Managing Director of Blocks.sg, a digital assets advisory firm based in Singapore. He started his career in finance as an equities derivatives trader for Goldman Sachs. He was previously Head of Growth and Strategy at Zilliqa, where he led ecosystem and business development, and lead organiser for De\/Centralize 2018, a groundbreaking conference on digital assets and blockchain.   \u003c\/p\u003e\u003cp\u003eIn \u003ci\u003eDecentralizing Finance: How DeFi, Digital Assets, and Distributed Ledger Technology Are Transforming Finance,\u003c\/i\u003e blockchain and digital assets expert Kenneth Bok offers an insightful exploration of the current state of decentralized finance (DeFi). As distributed ledger technology (DLT) increasingly optimizes and democratizes financial ecosystems worldwide, this book serves as a comprehensive guide to the most salient aspects of the ongoing transformation. \u003c\/p\u003e\u003cp\u003eThe text delves into both crypto-native DeFi and DLT applications in regulated financial markets, providing: \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eComprehensive analysis of crypto-native DeFi across key areas such as its competitive landscape, infrastructure, financial instruments, activities, and applications \u003c\/li\u003e \u003cli\u003eCoverage of key risks, mitigation strategies, and regulatory frameworks, analyzed through the perspective of international financial standard-setting bodies\u003c\/li\u003e \u003cli\u003eInsight into how DLT is reshaping traditional financial systems through innovations like central bank digital currencies (CBDCs), tokenized assets, tokenized deposits, and institutional-grade DeFi platforms\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIn a world where financial technology is rewriting the fundamental code of digital currency, the future of money is undeniably DLT-centric. How will this seismic shift interact with existing financial infrastructures? Can decentralization and traditional banking coexist and potentially synergize? This book endeavors to answer these pressing questions for financial professionals navigating these transformative times. \u003c\/p\u003e\u003cp\u003eAuthored by a former Goldman Sachs trader, past Head of Growth at Zilliqa, and an early Ethereum investor with extensive experience in both traditional finance and the crypto ecosystem, \u003ci\u003eDecentralizing Finance\u003c\/i\u003e provides you with an insider’s perspective on the revolution that is DeFi.    \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePraise for\u003c\/b\u003e DECENTRALIZING FINANCE \u003c\/p\u003e\u003cp\u003e“In a space that is often fast-moving and difficult to fully understand, Bok successfully demystifies many of the key questions that surround DeFi. At R3 we have witnessed first-hand the evolution of emerging innovations such as CBDCs and tokenization, and what this book accomplishes is a detailed overview of the convergence between these new economic models and traditional financial frameworks. The book’s thoughtful breakdown of important industry initiatives, such as the Regulated Liability Network, enables readers to gain detailed insight into DeFi, without being overwhelmed by its complexities. Overall, \u003ci\u003eDecentralizing Finance\u003c\/i\u003e is a must-read for those interested in the impact of DLT and digital assets on today’s financial services industry.”\u003cbr\u003e \u003cb\u003e—Todd McDonald,\u003c\/b\u003e Co-Founder and Chief Strategy Officer, R3 \u003c\/p\u003e\u003cp\u003e“In the rapidly changing world of DeFi, Kenneth’s book is both relevant and timely, offering authoritative insights on the industry’s current evolution. In sharing his vision for the future, he brings valuable perspectives from deep experience in digital assets and blockchain as an investor, trader and more. Whether you are a crypto-native or just starting out in DeFi, I recommend this as an essential and informative read.”\u003cbr\u003e \u003cb\u003e—Darius Sit,\u003c\/b\u003e Founder \u0026amp; CIO, QCP Capital \u003c\/p\u003e\u003cp\u003e“Kenneth Bok’s book provides a solid overview of the fast-moving Decentralized Finance ecosystem. In particular, he introduces critical developments within and outside the regulatory perimeter. But Ken does not stop there; he also shares his future vision for DeFi — pick up a copy to find what it is. I recommend his book to anyone who wants to understand DLT \u0026amp; blockchain-based finance and is overwhelmed by the pace of industry developments and the quantity of academic papers released daily. Ken uniquely contributes to our understanding of DeFi by delivering the future standard introductory work for industry practitioners.”\u003cbr\u003e \u003cb\u003e—Daniel Liebau,\u003c\/b\u003e Affiliated Faculty, Singapore Management University \u003c\/p\u003e\u003cp\u003e“Kenneth Bok offers a comprehensive overview of the DeFi landscape by clearly defining the various layers of the application and infrastructure stack, presenting the key use cases and the differing mechanisms, and relating them to the current traditional finance and regulatory systems. Kenneth also offers glimpses into how factors such as government and market competition will change the landscape moving forward. This book should be read by anyone looking to understand DeFi from a theoretical and practical lens, as well as the associated benefits and risks of participating directly in the ecosystem.” \u003cbr\u003e \u003cb\u003e—Lasse Clausen,\u003c\/b\u003e Founding Partner, 1kx\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989030060261,"sku":"NP9781394154975","price":29.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781394154975.jpg?v=1761782508","url":"https:\/\/k12savings.com\/products\/decentralizing-finance-isbn-9781394154975","provider":"K12savings","version":"1.0","type":"link"}