Theme：Information Processing in a Transparent Market: Evidence from a DeFi Protocol

Lecturer：Danqi Hu

Time：2022.05.31 15:00

Site：Tencent meeting 274 305 614

Abstract：

We take advantage of a rare setting in a decentralized finance market (the MakerDao Lending Protocol), where each trader’s activities are freely and publicly available in real-time and recorded permanently to the blockchain, to examine traders’mimicking behavior in this extremely transparent market. We find robust evidence of cross-sectional pe-rsistence in traders’ performance. Despite the public availability of all traders’ past and real-time activities, investors’efficient mimicking does not happen automatically and varies with the information processing costs associated with using the publicly available information on the blockchain.

Introduction to the lecturer：

Danqi Hu is an associate professor and doctoral supervisor of the Department of Accounting, Guanghua School of Management, Peking University. His research fields are financial accounting and capital markets, and he is committed to using new technologies (such as text analysis and machine learning) and high-frequency data to study market transparency, corporate transparency, their interactions and their policy implications for the design of capital market institutions and the regulation of corporate financial disclosure. She was awarded the American Institute of Public Accountants FARS Best Dissertation Award and the Doctoral Fellowship Award for Innovative Research in Accounting Education. Her research results have been published in The Journal of Accounting and Economics, The Accounting Review, Review of Accounting Studies and other international top academic journals.