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Innovative Risk Management Solutions in DeFi: A Study of Tracking Platforms

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  • Imran Hussain Shah

Abstract

Purpose: This study provides a user-prioritized, data-driven framework for evaluating DeFi risk management platforms and offers actionable insights for developers, investors, and regulators seeking to enhance the transparency, security, and sustainability of the DeFi ecosystem. Design/Methodology/Approach: This study investigates the effectiveness of six leading DeFi tracking platforms—Chainalysis, Elliptic, Nansen, Dune Analytics, DeBank, and Etherscan—in mitigating these risks. Employing a mixed-methods approach, the research integrates survey data (n = 138), expert interviews, and platform metrics, analyzed through advanced statistical techniques such as T-Test, MANOVA, Logistic Regression, Kruskal–Wallis H Test, Cohen’s D Effect Size, Survival Analysis, Cluster Analysis, and a Utility-Based Scoring Model. Findings: Results reveal significant differences in platform performance, with Chainalysis and Etherscan emerging as top performers in compliance and usability, respectively. Practical Implications: The rapid expansion of Decentralized Finance (DeFi) has revolutionized financial services by eliminating intermediaries and enabling peer-to-peer interactions through blockchain-based smart contracts. However, this innovation introduces significant risk management challenges, including smart contract vulnerabilities, transaction opacity, and compliance limitations. Originality value: The utility model highlights the importance of real-time alerts, trust, and compliance tools in platform adoption.

Suggested Citation

  • Imran Hussain Shah, 2025. "Innovative Risk Management Solutions in DeFi: A Study of Tracking Platforms," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 185-203.
    • Handle: RePEc:ers:ijebaa:v:xiii:y:2025:i:2:p:185-203
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    1. Fabian Schär, 2021. "Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets," Review, Federal Reserve Bank of St. Louis, vol. 103(2), pages 153-174, April.
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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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