Decentralized finance (DeFi) consists of a wide range of heterogeneous sectors which are interconnected by way of an input-output community of its tokens. We first use a panel knowledge set to empirically doc the evolution of the DeFi community throughout its completely different sectors. As a substitute of trying on the deceptive measure of complete worth locked, we then make use of a normal, theoretical production-network mannequin to measure the worth added and repair outputs of the completely different DeFi sectors. Lastly, primarily based on a calibrated model of our mannequin, we examine which elements drive DeFi token costs and predict the equilibrium results when community interconnectedness will increase.
