Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

5-2023

Abstract

Decentralized Finance (DeFi) platforms use self-executing smart contracts to provide financial services and are programmed to automatically post all transactions on the public blockchain. Notwithstanding this public availability of blockchain information, DeFi platforms also aggregate these transactions and disclose the summarized blockchain information on their Twitter accounts. This paper studies whether and how voluntary disclosure of blockchain information plays a role in the transparent DeFi market. I find that the number of blockchain-related tweets is associated both with an increase in the platform’s Total Value Locked (TVL) and with an increase in the unique number of platform users. The relationship between blockchain-related tweets and TVL is strengthened when the tweets have greater information content and when users face higher information processing costs. This suggests that public blockchain transactions are too costly for users to process such that they rely on the platform’s disclosure. Overall, my results show that DeFi platforms can help users process and understand blockchain transactions by summarizing and disclosing them on Twitter.

Keywords

decentralized finance (defi), cryptocurrency, disclosure, information processing costs

Degree Awarded

PhD in Accounting

Discipline

Accounting | Finance and Financial Management

Supervisor(s)

ZHANG, Liandong

First Page

1

Last Page

78

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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