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
Citation
AW YONG, Amanda.
The role of disclosure in DeFi markets: Evidence from Twitter. (2023). 1-78.
Available at: https://ink.library.smu.edu.sg/etd_coll/488
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.