Lorenzo Schoenleber wins grant from the Fintech Chair at Paris Dauphine University

Congratulations to Assistant Professor of Finance Lorenzo Schoenleber for receiving funding for his project on Yield Farming from the Fintech Chair at Paris-Dauphine University-PSL.

Created with the support of Mazars and CACIB, the Fintech Chair at Paris-Dauphine aims through expert mornings, round tables, and annual conferences worldwide, to bring together academic specialists and professionals, to discuss the theme of digital finance. Selected research projects receive the support of up to EUR 10,000, and in addition, the prizewinners are considered an associate member of the Chaire Fintech which allows them to be part of a community sharing information about worldwide conferences in Fintech and research projects.

Lorenzo’s project is about Yield Farming, which denotes a Decentralised Finance (DeFi) strategy of seeking rewards in the form of transaction fees by depositing tokens into a decentralized application. First, they demystify the investment process and quantify transaction costs, returns, and risks using historical data from a major decentralized exchange. Then, they reveal the economic mechanisms providing a mathematical (optimization) framework which resembles the yield farming investment process including the direct modeling of returns, transaction costs, and sources of risk.