Paper 2026/675
SoK: DeFi Lending and Yield Aggregation Protocol Taxonomy, Empirical Measurements, and Security Challenges
, Yale University, IC3, Complexity Science Hub, Technion - Israel Institute of TechnologyAbstract
Decentralized Finance (DeFi) lending protocols implement programmable credit markets without intermediaries. This paper systematizes the DeFi lending ecosystem, spanning collateralized lending (including over- and under- collateralized designs, and zero-liquidation loans), uncollateralized primitives (e.g., flashloans), and yield aggregation protocols which allocate capital across underlying lending platforms. Beyond a taxonomy of mechanisms and comparing protocols, we provide empirical on-chain measurements of lending activity and user behavior, using Compound V2 and AAVE V2 as case studies, and connect empirical observations to protocol design choices (e.g., interest-rate models and liquidation incentives). We then characterize vulnerabilities that arise due to notable designs, focusing on interest-rate setting mechanisms and time-measurement approaches. Finally, we outline open questions at the intersection of mechanism design, empirical measurement and security for future research.
Note: The paper was recently accepted to IEEE Transactions on Network and Service Management.
Metadata
- Available format(s)
-
PDF
- Category
- Applications
- Publication info
- Published elsewhere. Minor revision. IEEE Transactions on Network and Service Management
- Keywords
- BlockchainDecentralized Finance (DeFi)LendingYield Aggregation
- Contact author(s)
-
aradk @ campus technion ac il
tomazoulay @ campus technion ac il
yoad abels @ campus technion ac il
a @ yai sh
or @ technion ac il - History
- 2026-04-07: approved
- 2026-04-06: received
- See all versions
- Short URL
- https://ia.cr/2026/675
- License
-
CC BY
BibTeX
@misc{cryptoeprint:2026/675,
author = {Arad Kotzer and Tom Azoulay and Yoad Abels and Aviv Yaish and Ori Rottenstreich},
title = {{SoK}: {DeFi} Lending and Yield Aggregation Protocol Taxonomy, Empirical Measurements, and Security Challenges},
howpublished = {Cryptology {ePrint} Archive, Paper 2026/675},
year = {2026},
url = {https://eprint.iacr.org/2026/675}
}
