Empirical approach to decentralized finance: practical study in two liquidity protocols

Identifier:  TFG:9119

Handle: https://hdl.handle.net/20.500.11797/TFG9119

Authors:  Casas Nogués, Pol

Abstract:
This undergraduate thesis explores the practical operation of decentralized finance (DeFi) through a comparative analysis of two of the most widely used platforms: Uniswap v3 and PancakeSwap v3. By executing real transactions on the Arbitrum One and BNB Chain networks respectively, the study investigates two representative DeFi strategies: liquidity provision and yield farming. Combining a strong theoretical foundation with hands-on experimentation, the analysis evaluates differences in profitability, transaction costs, operational complexity, risks, and user experience. Special attention is given to price range decisions, APR fluctuations, fee accumulation, and the time commitment required for strategy monitoring and management.