{"id":"https://openalex.org/W7117123092","doi":"https://doi.org/10.1109/brains67003.2025.11302928","title":"Automated Risk Management Mechanisms in DeFi Lending Protocols: A Crosschain Comparative Analysis of Aave and Compound","display_name":"Automated Risk Management Mechanisms in DeFi Lending Protocols: A Crosschain Comparative Analysis of Aave and Compound","publication_year":2025,"publication_date":"2025-11-18","ids":{"openalex":"https://openalex.org/W7117123092","doi":"https://doi.org/10.1109/brains67003.2025.11302928"},"language":null,"primary_location":{"id":"doi:10.1109/brains67003.2025.11302928","is_oa":false,"landing_page_url":"https://doi.org/10.1109/brains67003.2025.11302928","pdf_url":null,"source":null,"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"2025 7th Conference on Blockchain Research &amp;amp; Applications for Innovative Networks and Services (BRAINS)","raw_type":"proceedings-article"},"type":"conference-paper","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5023768506","display_name":"Erum Iftikhar","orcid":null},"institutions":[{"id":"https://openalex.org/I36234482","display_name":"University of Bristol","ror":"https://ror.org/0524sp257","country_code":"GB","type":"education","lineage":["https://openalex.org/I36234482"]}],"countries":["GB"],"is_corresponding":false,"raw_author_name":"Erum Iftikhar","raw_affiliation_strings":["University of Bristol,School of Engineering Mathematics and Technology,Bristol,UK"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"University of Bristol,School of Engineering Mathematics and Technology,Bristol,UK","institution_ids":["https://openalex.org/I36234482"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5121147841","display_name":"Wei Wei","orcid":null},"institutions":[{"id":"https://openalex.org/I36234482","display_name":"University of Bristol","ror":"https://ror.org/0524sp257","country_code":"GB","type":"education","lineage":["https://openalex.org/I36234482"]}],"countries":["GB"],"is_corresponding":false,"raw_author_name":"Wei Wei","raw_affiliation_strings":["University of Bristol,School of Engineering Mathematics and Technology,Bristol,UK"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"University of Bristol,School of Engineering Mathematics and Technology,Bristol,UK","institution_ids":["https://openalex.org/I36234482"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5017729087","display_name":"John Cartlidge","orcid":"https://orcid.org/0000-0002-3143-6355"},"institutions":[{"id":"https://openalex.org/I36234482","display_name":"University of Bristol","ror":"https://ror.org/0524sp257","country_code":"GB","type":"education","lineage":["https://openalex.org/I36234482"]}],"countries":["GB"],"is_corresponding":false,"raw_author_name":"John Cartlidge","raw_affiliation_strings":["University of Bristol,School of Engineering Mathematics and Technology,Bristol,UK"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"University of Bristol,School of Engineering Mathematics and Technology,Bristol,UK","institution_ids":["https://openalex.org/I36234482"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":[],"corresponding_institution_ids":["https://openalex.org/I36234482"],"apc_list":null,"apc_paid":null,"fwci":0.0,"has_fulltext":false,"cited_by_count":0,"citation_normalized_percentile":{"value":0.586601,"is_in_top_1_percent":false,"is_in_top_10_percent":false},"cited_by_percentile_year":null,"biblio":{"volume":null,"issue":null,"first_page":"1","last_page":"8"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10270","display_name":"Blockchain Technology Applications and Security","score":0.5091000199317932,"subfield":{"id":"https://openalex.org/subfields/1710","display_name":"Information Systems"},"field":{"id":"https://openalex.org/fields/17","display_name":"Computer Science"},"domain":{"id":"https://openalex.org/domains/3","display_name":"Physical Sciences"}},"topics":[{"id":"https://openalex.org/T10270","display_name":"Blockchain Technology Applications and Security","score":0.5091000199317932,"subfield":{"id":"https://openalex.org/subfields/1710","display_name":"Information Systems"},"field":{"id":"https://openalex.org/fields/17","display_name":"Computer Science"},"domain":{"id":"https://openalex.org/domains/3","display_name":"Physical Sciences"}},{"id":"https://openalex.org/T11995","display_name":"FinTech, Crowdfunding, Digital Finance","score":0.32839998602867126,"subfield":{"id":"https://openalex.org/subfields/1404","display_name":"Management Information Systems"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10127","display_name":"Banking stability, regulation, efficiency","score":0.014999999664723873,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/revenue","display_name":"Revenue","score":0.5629000067710876},{"id":"https://openalex.org/keywords/risk-management","display_name":"Risk management","score":0.5497999787330627},{"id":"https://openalex.org/keywords/market-liquidity","display_name":"Market liquidity","score":0.5277000069618225},{"id":"https://openalex.org/keywords/value","display_name":"Value (mathematics)","score":0.444599986076355},{"id":"https://openalex.org/keywords/liquidity-risk","display_name":"Liquidity risk","score":0.392300009727478},{"id":"https://openalex.org/keywords/panel-data","display_name":"Panel data","score":0.3806999921798706}],"concepts":[{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.6162999868392944},{"id":"https://openalex.org/C195487862","wikidata":"https://www.wikidata.org/wiki/Q850210","display_name":"Revenue","level":2,"score":0.5629000067710876},{"id":"https://openalex.org/C32896092","wikidata":"https://www.wikidata.org/wiki/Q189447","display_name":"Risk management","level":2,"score":0.5497999787330627},{"id":"https://openalex.org/C183582576","wikidata":"https://www.wikidata.org/wiki/Q184783","display_name":"Market liquidity","level":2,"score":0.5277000069618225},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.5091999769210815},{"id":"https://openalex.org/C2776291640","wikidata":"https://www.wikidata.org/wiki/Q2912517","display_name":"Value (mathematics)","level":2,"score":0.444599986076355},{"id":"https://openalex.org/C189259953","wikidata":"https://www.wikidata.org/wiki/Q1042259","display_name":"Liquidity risk","level":3,"score":0.392300009727478},{"id":"https://openalex.org/C112930515","wikidata":"https://www.wikidata.org/wiki/Q4389547","display_name":"Risk analysis (engineering)","level":1,"score":0.3846000134944916},{"id":"https://openalex.org/C6422946","wikidata":"https://www.wikidata.org/wiki/Q857354","display_name":"Panel data","level":2,"score":0.3806999921798706},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.3149000108242035},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.3021000027656555},{"id":"https://openalex.org/C43071985","wikidata":"https://www.wikidata.org/wiki/Q2906013","display_name":"Financial risk management","level":3,"score":0.2768000066280365},{"id":"https://openalex.org/C2992735868","wikidata":"https://www.wikidata.org/wiki/Q66344","display_name":"Central bank","level":3,"score":0.262800008058548},{"id":"https://openalex.org/C2779795794","wikidata":"https://www.wikidata.org/wiki/Q7315343","display_name":"Reset (finance)","level":2,"score":0.2565000057220459}],"mesh":[],"locations_count":1,"locations":[{"id":"doi:10.1109/brains67003.2025.11302928","is_oa":false,"landing_page_url":"https://doi.org/10.1109/brains67003.2025.11302928","pdf_url":null,"source":null,"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"2025 7th Conference on Blockchain Research &amp;amp; Applications for Innovative Networks and Services (BRAINS)","raw_type":"proceedings-article"}],"best_oa_location":null,"sustainable_development_goals":[],"awards":[],"funders":[{"id":"https://openalex.org/F4320314731","display_name":"UK Research and Innovation","ror":"https://ror.org/001aqnf71"}],"has_content":{"grobid_xml":false,"pdf":false},"content_urls":null,"referenced_works_count":14,"referenced_works":["https://openalex.org/W3114396687","https://openalex.org/W3134196592","https://openalex.org/W4287855120","https://openalex.org/W4288072839","https://openalex.org/W4291470779","https://openalex.org/W4318716761","https://openalex.org/W4382117356","https://openalex.org/W4385820244","https://openalex.org/W4395055338","https://openalex.org/W4396767507","https://openalex.org/W4402510455","https://openalex.org/W4403864882","https://openalex.org/W4404863616","https://openalex.org/W4404933079"],"related_works":[],"abstract_inverted_index":{"Blockchain-based":[0],"decentralised":[1],"lending":[2,22,51,99],"is":[3,53],"a":[4,61],"rapidly":[5],"growing":[6],"and":[7,73,75,78,87,102,131,187,203],"evolving":[8],"alternative":[9],"to":[10,67,109,124,142],"traditional":[11],"lending,":[12],"but":[13],"it":[14],"poses":[15],"new":[16],"risks.":[17],"To":[18,55],"mitigate":[19],"these":[20,50],"risks,":[21],"protocols":[23,52,122,160],"have":[24,149,161],"integrated":[25],"automated":[26],"risk":[27,40,163],"management":[28,41,164],"tools":[29],"into":[30],"their":[31,184,200],"smart":[32],"contracts.":[33],"However,":[34],"the":[35,38,45,70,95,105,138,156,166,177],"effectiveness":[36,80],"of":[37,49,81,94,120],"latest":[39],"features":[42],"introduced":[43],"in":[44,118,127,147],"most":[46,97,157],"recent":[47,158],"versions":[48],"understudied.":[54],"close":[56],"this":[57],"gap,":[58],"we":[59],"use":[60],"panel":[62],"regression":[63],"fixed":[64],"effects":[65],"model":[66],"empirically":[68],"analyse":[69],"cross-version":[71],"(v2":[72],"v3)":[74],"cross-chain":[76],"(L1":[77],"L2)":[79],"liquidation":[82,116],"mechanisms,":[83],"measured":[84],"through":[85],"TVL":[86],"total":[88,128,132],"revenue":[89],"as":[90],"proxies":[91],"for":[92,183,199],"performance":[93],"two":[96],"popular":[98,195],"protocols,":[100],"Aave":[101],"Compound,":[103],"during":[104],"period":[106],"Jan":[107],"2021":[108],"Dec":[110],"2024.":[111],"Our":[112],"analysis":[113],"reveals":[114],"that":[115,155,173],"events":[117],"v3":[119,159],"both":[121],"lead":[123],"an":[125,150],"increase":[126],"value":[129],"locked":[130],"revenue,":[133],"with":[134],"stronger":[135],"impact":[136],"on":[137],"L2":[139,191],"blockchain":[140],"compared":[141],"L1.":[143],"In":[144],"contrast,":[145],"liquidations":[146],"v2":[148,168],"insignificant":[151],"impact,":[152],"which":[153],"indicates":[154],"better":[162],"than":[165],"earlier":[167],"protocols.":[169],"We":[170],"also":[171],"show":[172],"L1":[174],"blockchains":[175,192],"are":[176,193],"preferred":[178],"choice":[179],"among":[180,196],"large":[181],"investors":[182,198],"robust":[185],"liquidity":[186],"ecosystem":[188],"depth,":[189],"while":[190],"more":[194],"retail":[197],"lower":[201],"fees":[202],"faster":[204],"execution.":[205]},"counts_by_year":[],"updated_date":"2026-07-29T14:22:42.915294","created_date":"2025-12-24T00:00:00"}
