The 4th Workshop on
Coordination of Decentralized Finance
(CoDecFin) 2023

In Association with Financial Cryptography 2022

May 5, 2023

Bluesun Hotel Elaphusa
Bol, Brač, Croatia

Date and Venue

  • Date: May 5, 2023
  • Venue: Bluesun Hotel Elaphusa, Bol, Brač, Croatia

Background

On June 8th and 9th 2019, Distributed Ledger Technology-related innovations have been referenced in the Communique at the G20 Finance and Central Bank Meeting in Fukuoka, Japan, referencing the report produced by the Financial Stability Board (FSB).

  • G20 Communique Section 13 "We welcome the FSB report on decentralized financial technologies, and the possible implications for financial stability, regulation and governance, and how regulators can enhance the dialogue with a wider group of stakeholders.”

  • FSB Report Decentralised financial technologies: Report on financial stability, regulatory and governance implications; Direct link to the FSB Report document

Blockchain Governance Initiative Network ("BGIN" - pronounced ‘BEGIN’) ​was initiated on March 10, 2020 after several multi-stakeholder workshops including CoDeFi 2020, an associated workshop with Financial Cryptography 2020. BGIN is a multi-stakeholder discussion network which aims at providing an open and neutral sphere for all stakeholders to deepen common understanding and to collaborate to address issues they face in order to attain sustainable development of the blockchain community.

Workshop on Coordination of Decentralized Finance (CoDecFin)

This workshop is designed to identify and discuss technology and operation issues of permissionless blockchain and decentralized finance. As permissionless blockchain and distributed ledger technology (DLT) platforms evolve and mature, there is an urgent need for multi-stakeholders to engage in their planning, development, roll-out, and operation, in order for innovation of a wide variety of financial applications to proliferate and become mainstream. Thus far it has been mainly developer & startup communities which are driving these protocols, platforms, and applications for this new era of computing. New ​standards, governance mechanisms and design patterns​are evolving and need input from a variety of perspectives. There is a growing trend towards decentralized computing systems in which distributed ledger technologies are a fundamental component. These systems are designed to be global computing systems; they will likely form the basis of new financial services and businesses including a distributed Financial Market Infrastructure (dFMI). These new financial services and businesses could bring huge benefit to the global financial system, e.g. resiliency over efficiency, and predictability over resiliency. However financial regulators, central banks, the Bank for International Settlements (BIS) and International Monetary Fund (IMF), while recognizing the potential of DLT systems, have also been keenly aware of the challenges in the adoption, and designing for the consumer protections required to balance usability, safety while supporting innovation. While it is likely that many G20 countries will be leading the design and development of these new infrastructures, all cities and countries ​should be considered and encouraged to participate​in the planning.

Discussions of this workshop are expected to contribute to discussions of Blockchain Governance Initiative Network (BGIN), where common documents on blockchain technology and operations are created backed by all stakeholders. Hence, CoDeFi 2023 will be directly connected to the eighth general meeting (Block #8) of BGIN. The Block #8 will be held right after CoDecFin 2023, at the same location. This joint organization of FC, CoDecFin and BGIN Block #8 will encourage participants of Block #8, which include regulators, government organizations, blockchain business companies and engineers to attend Financial Cryptography main conference.

Special area of this year

Though the areas of academic discussion of this workshop are widely open (see the call for paper), from ongoing discussions among stakeholders, we strongly encourage to submit academic papers/research results to provide academic foundation to all stakeholders for following areas.
  • Usecase and governance of NFT/SBT
  • Analysis on human behaviors regarding stable coins and custodies
  • Blockchain governance after FTX
  • Decentralized treasury
  • Energy consumption and fair evaluation criteria

Note: This workshop does not endorse any specific decentralized finance projects and products.

Basic Structure of the Workshop

This workshop is composed of three parts:

  • Presentations of academic and practical results on blockchain technology and operations
  • Selected talks from ​a variety of stakeholders
  • Unconference/round table style multi-stakeholder discussions on selected discussion topics. Some/all discussions to be summarized by table leaders and/or scribes.

  • This preliminary information is subject to change.

    Round table roles (6-8 persons per table)

    Ideally, each table would have representation from each of these areas. During registration, participants will identify their role: Regulator, Banker / Financial Services, Lawyer, Economist, Technologist, Business, Academic / Research Scientist/ undefined. Either the table moderator, or assigned scribe to summarize key points, and questions asked.

    Examples of Roundtable discussion questions

    Roundtable discussions may include the following questions - e.g. one question per table:
    • Potential of decentralized finance
      • How may blockchain tech transform securities and derivatives markets? (see: The Promise of Blockchain Technology for Global Securities and Derivatives Markets: The New Financial Ecosystem and the 'Holy Grail' of Systemic Risk Containment
      • What current day institutions are likely to disappear if they do not adapt?
      • How may the new trading markets evolve e.g. stock markets, using DLTs? Tzero vs Linq vs ASX
      • How may new decentralized online markets impact KYC/AML regulations? OpenBazaar, Origin
    • Governance
      • How may governance of decentralized permissionless ledgers platforms best serve multi-stakeholders? (ledger protocols, platforms, cryptocurrencies, digital assets)
      • How may “legal code” become integrated with “computer code”? Accord project
      • What new institutions are needed to help this new societal structure be equitable?
      • How do we design and achieve harmonization of automated systems, human intervention and regulation?
      • How best to integrate centralized and decentralized financial infrastructure e.g. cryptocurrencies with today’s fiat currencies? In the near future, how may CBDCs be integrated with permissioned and permissionless systems?
      • Which organizations should guide standards development? What efforts should be focused on harmonizing standards e.g. ISO, NIST, Enterprise Ethereum Alliance, Hyperledger/Linux Foundation?
      • How may we foster robust innovation while preventing risks designated by regulators and steer clear from enforcement actions?
    • Custody as a point of adoption and potential regulation
      • ○ Design and operations of centralized and decentralized custody
      • ○ With over 250 DEXs and 30 DEX protocols, How may decentralized exchanges (DEXs) harmonize with existing financial infrastructure and markets?
    • Identity and privacy
      • Requirements derived from regulatory goals
      • Balancing privacy enhancing technologies and regulatory goals
    • Global and multi-stakeholder collaboration
      • How can regulation of such technologies bridge across geo-political boundaries?
      • How may smart contracts operate across global jurisdictions?
      • Which multi-stakeholders should be included to provide vision and stability to global financial market distributed ledger systems?
      • How may we co-design and evolve permissionless blockchain protocols to be environmentally sustainable and ‘green’?

    Organizing and Program Committees (Alphabetical Order)

    • Julien Bringer, Kallistech
    • Feng Chen, University of British Columbia
    • Victor Garcia, Universitat Oberta de Catalunya
    • Joaquin Garcia-Alfaro, Telecom SudParis
    • Arthur Gervais, Imperial College London
    • Shin'ichiro Matsuo, Georgetown University (Chair)
    • Kanta Matsuura, The University of Tokyo (Chair)
    • Michele Benedetto Neitz, Golden Gate University
    • Ali Nejadmalayeri, University of Wyoming
    • Roman Danziger Pavlov, SafeStead Inc.
    • Jeremy Rubin, Judica
    • Robert Schwentker, DLT Education and BSafe.network
    • Yonatan Sompolinsky, The Hebrew University of Jerusalem, DAGlabs
    • Ryosuke Ushida, JFSA
    • Robert Wardrop, University of Cambridge Judge Business School
    • Aaron Wright, Cardozo Law School
    • Anton Yemelyanov, Base58 Association
    • Aviv Zohar, The Hebrew University of Jerusalem

    Key Dates

    • Submission Due Date: Februrary 17, 2023
    • Notification: March 10, 2023
    • Workshop: May 5, 2023