An integrated decision-making process for risk analysis of decentralized finance

• Published in: Neural computing & applications Vol. 37; no. 8; pp. 6021 - 6051
• Main Author: Kirişci, Murat
• Format: Journal Article
• Language: English
• Published: London Springer London 01.03.2025; Springer Nature B.V
• Subjects: Artificial Intelligence; Asset management; Blockchain; Computational Biology/Bioinformatics; Computational Science and Engineering; Computer Science; Data Mining and Knowledge Discovery; Decision making; Digital currencies; Distributed ledger; Empirical analysis; Finance; Financial systems; Fuzzy sets; Image Processing and Computer Vision; Innovations; Original Article; Performance evaluation; Probability and Statistics in Computer Science; Risk analysis; Risk assessment; Sensitivity analysis; Stochastic models; Technological change; Volatility; DEMATEL; Risk assessment; Fermatean fuzzy environment; Decentralized finance (DeFi); AHP; MCDM; TOPSIS; ARAS
• ISSN: 0941-0643; 1433-3058
• DOI: 10.1007/s00521-024-10839-2

Decentralized finance is upending the financial system through innovative, open, and interoperable financial solutions. Decentralized finance is a rapidly emerging field based on distributed ledger technology. Decentralized banking protocols are witnessing a perfect storm in terms of growth. However, because these financial innovations pose specific risks to consumers, creators, regulators, and other stakeholders, this emerging subject demands careful investigation. The current study tries to categorize and rate the risks connected with decentralized finance. The current study seeks to identify the multiple risks associated with decentralized finance through a thorough literature analysis. Data gathered from specialists in prior research were incorporated into the study used for empirical analysis. As MCDM techniques, IVFF-based DEMATEL, AHP, and TOPSIS are first used, and then the IVFF-ARAS method and sensitivity analysis are used for performance evaluation and verification. The findings of this study have several ramifications for legislators, businesspeople, technologists, and practitioners. These stakeholders can concentrate on these weaknesses in the future and provide longer-lasting solutions.