Sylvain Carré
Full Professor of Economics
Université Paris I Panthéon-Sorbonne
Affiliated researcher, Dauphine Foundation Digital Finance Chair
Recipient of the 2023 Young Researcher in Economics prize, awarded by Autorité des Marchés Financiers (the French SEC).
Contact
sylvain.carre(at)univ-paris1.fr
CV_Carre.pdfArticles
Working papers
Liquid Staking: When does it help?, with Franck Gabriel.
Efficiency and Security in DeFi Lending, with Franck Gabriel.
(Previously circulated as ``Security and Credit in Proof-of-Stake DeFi Protocols").
Presentations: NEOMA Business School - ISFA Lyon - SKEMA Business School - Apéro DeFi @ Palais Brongniart, Paris - 2nd International Cardiff Fintech Conference - Dauphine Digital Days - Université Paris I Panthéon-Sorbonne - Banque de France - Tech For Finance: AI and Blockchain
We construct a tractable general equilibrium model of DeFi lending to shed light on the role of pricing rules. We determine how the rule controls key equilibrium variables such as the utilization rate. Our model delivers a measure of welfare which incorporates the DeFi borrowing rate and the security of the underlying (Proof-of-Stake) blockchain, which we use to find welfare-maximizing pricing rules. Using a genuine function of the utilization rate becomes meaningful when there is parameter uncertainty. We establish conditions under which the first-best can be implemented by such a function, which we exhibit explicitly. When these conditions are not met, allowing the rule to also depend on the staking level restores efficiency. Our analysis leads to several other practical recommendations and conceptual clarifications.
Publications
Banks as Liquidity Multipliers, with Damien Klossner - Review of Financial Studies (2024), volume 37(1), pages 265-307.
Insider Trading with Penalties, with Pierre Collin-Dufresne and Franck Gabriel - Journal of Economic Theory (2022), volume 203, pages 1-36.
Disclosures, Rollover Risk, and Debt Runs - Journal of Banking and Finance (2022), volume 142, pages 1-18.
The Sources of Sovereign Risk, with Daniel Cohen and Sébastien Villemot - Journal of International Economics (2019), volume 118, pages 31-43.
(Computer science/Game theory) Smart Proofs via Recursive Information Gathering, with Gabriel, Hongler, Lacerda and Capano - ACM Distributed Ledger Technologies (2024), volume 3(1), pages 1-19.
