Decentralized finance (DeFi) has the potential to disrupt centralized finance by validating peer-to-peer transactions through tamper-proof smart contracts, thus significantly lowering the transaction cost charged by financial intermediaries. However, the actual realization of peer-to-peer transactions and the levels and effects of decentralization are largely unknown. Our research pioneers a blockchain network study that applies social network analysis to measure the level, dynamics, and impacts of decentralization in DeFi token transactions on the Ethereum blockchain. First, we find a significant core-periphery structure in the AAVE token transaction network where the cores include the two largest centralized crypto exchanges. Second, we provide evidence that multiple network features consistently characterize decentralization dynamics. Finally, we document that a more decentralized network significantly predicts a higher return and lower volatility of the decentralized market of AAVE tokens on the Ethereum blockchain. We point out that our approach is seminal for inspiring future extensions related to the facets of application scenarios, research questions, and methodologies on the mechanics of blockchain decentralization.

翻译：去中心化金融（DeFi）有望通过防篡改智能合约验证点对点交易，从而显著降低金融中介收取的交易成本，进而颠覆中心化金融体系。然而，点对点交易的实现程度以及去中心化的水平与影响在很大程度上仍属未知。本研究开创性地运用社会网络分析，衡量以太坊区块链上DeFi代币交易的去中心化程度、动态特征及其影响。首先，我们发现AAVE代币交易网络存在显著的核心-边缘结构，核心中包含两个最大的中心化加密货币交易所。其次，我们提供证据表明，多种网络特征一致地刻画了去中心化的动态演变。最后，我们证明，网络去中心化程度的提高能显著预测以太坊区块链上AAVE代币去中心化市场更高的回报率和更低的波动性。我们指出，本方法具有开创性意义，可启发未来在区块链去中心化机制的应用场景、研究问题及方法论等方面的拓展。