EthereumZuri.ch 2024

DeFi Supervision - Who's task is it?
04-07, 14:30–15:30 (Europe/Zurich), Merge Stage

The workshop is dedicated to unraveling the complexities of supervision in the rapidly evolving Decentralized Finance (DeFi) landscape. As DeFi reshapes the traditional financial ecosystem with its distributed and pseudonymous structure, it brings forth a new set of challenges in risk management and regulatory oversight. This workshop aims to delve into these challenges and explore who should bear the responsibility for ensuring safety of assets and maintaining systemic integrity.

The session will start with an overview of DeFi’s unique characteristics, emphasizing its decentralized nature and how it differs from traditional finance. We will then shift our focus to the inherent risks associated with DeFi, such as smart contract vulnerabilities, liquidity issues, and the absence of a centralized governing body. A critical part of our discussion will center around the concept of "Do Your Own Research" (DYOR), examining its practicality and limitations in the context of DeFi risk management.

Furthermore, the workshop will explore the roles that various entities, including governments, regulatory bodies, and the DeFi community itself, can play in supervision. Can a decentralized system be effectively regulated, and if so, how? Should the responsibility of safety lie solely on the users, or should external parties step in to provide oversight?

Participants are encouraged to bring their insights and experiences to what promises to be a lively discussion. The goal is not just to identify the challenges, but also to collaboratively propose innovative solutions and frameworks that could guide the future of DeFi supervision. Whether you're a DeFi enthusiast, a regulatory expert, or just curious about the future of finance, this workshop will provide valuable insights into one of the most pressing questions in the world of blockchain and cryptocurrencies.


Agenda:

  • Introduction to DeFi and Its Unique Characteristics
  • Discussion on the Inherent Risks in DeFi
  • The Role of 'Do Your Own Research' (DYOR) in DeFi
  • Exploring the Potential Roles of Governments and Regulatory Bodies
  • Open Discussion: Balancing Decentralization and Regulation

Workshop Goal:
The aim of this workshop is to engage participants in a dynamic discussion about the complexities of supervising DeFi. It seeks to understand the balance between the decentralized ethos of DeFi and the need for user protection and systemic stability. The session will provide a platform for participants to share ideas, debate various viewpoints, and collaboratively propose potential paths for effective DeFi supervision.

Who Should Attend:
This workshop is ideal for blockchain enthusiasts, DeFi investors, regulatory and compliance professionals, fintech innovators, and anyone interested in understanding the future of financial supervision in the age of decentralization.

Participant Takeaways:
- A deeper understanding of DeFi's risks and challenges.
- Insight into the debate around self-regulation versus external oversight.
- Collaborative proposals for the future of DeFi supervision.
- Networking opportunities with peers and experts in the field.

Prof. Dr. Tim Weingaertner is a lecturer at the School of Computer Science and Information Technology at the Lucerne University of Applied Sciences and Arts, Switzerland. His research focuses on Blockchain technology (DLT) and Self-sovereign identity. Tim is board member of DIDAS (Self-sovereign identity) and president of DEC Institute.
He obtained his PhD in medical robotics at the University of Karlsruhe, Germany, and subsequently worked over 15 years in the Swiss financial industry.