| dc.description.abstract | develop and compare two DeFi regulatory uncertainty indexes based on the specialised media
coverage frequency. By applying active learning in combination with SVM to identify
uncertainty-related news articles, I show how regulatory uncertainty can be captured for
emerging industries with limited data intervals. Both indexes display rising levels of DeFi
regulatory uncertainty in recent years with the highest index spikes appearing during the first
wave of the COVID-19 pandemic. By constructing a structural VAR model, I identified the
negative effects of regulatory uncertainty shocks on total value locked in smart contracts of
decentralised financial services. The negative response is consistent among the leading DeFi
categories, such as lending services and decentralised exchanges. However, uncertainty shocks
cause an increase of total value locked in derivatives and payment protocols. | en_US |
