2022-09-15, Evgeny Pentsak, “DeFi: challenges of modern financial analytics”


2022-09-15, Evgeny Pentsak, “DeFi: challenges of modern financial analytics”



Evgen Pencak - Professor of Finance and Economics at KBS, contributor to KBS: Economics, Finance, Investments, Risk management. Panzak Maє degree of Doctor of Philosophy of the University of Lausanne (Switzerland). He worked as the director of the Lviv Institute of Management Business School (2004 - 2007), Vice President for Econometrics at the University of Lausanne (UNIL), Financial Mathematics at the Lausanne Polytechnic University (EPFL), Investment Practice Management at the University of Rotterdam MSIE (ERU), as well as investment director of P&S Capital Ukraine

Evgen Pentsak is the author of numerous publications on econometrics, mathematics, economics, finance and risk management, a participant in many international conferences, and a co-founder of FASS (Finart Smart Solutions) and MODEX UKRAINE.
Imagine yourself as a farmer thinking about how his business will operate next year. Will the war end? What will be the prices for mineral fertilizers and seeds? How to handle fields? What crops to grow? Or insure? Where can I get harvesting equipment? Under what contracts to sell crops, etc.
Similar to the actions of a farmer, construction companies can sell residential or commercial real estate using various types of contracts with their counterparties, hedging and insuring their risks with suppliers of materials, construction equipment, electricity, etc. For example, a beer manufacturer, by signing an agreement with a distributor on the supply of a certain volume of beer in cans, could protect its risks on the cost of barley, hops and the cost of the empty aluminum can itself. Companies involved in the development of sand, stone or coal quarries face the risks of a collapse in the construction or energy industry when prices for the extracted raw materials can fall. Travel companies can be affected by influenza epidemics or, in particular, from 19 years old, or by adverse weather conditions in certain regions. Air carriers face the risk of rising fuel prices as well as a rapid drop in household incomes. In each of these cases, companies can protect themselves against some risks through exchange-traded contracts, in other cases through over-the-counter or insurance contracts, and for some risks they cannot be protected at all. What are the advantages and disadvantages of exchange transactions? The advantage of exchange transactions over over-the-counter transactions is a guarantee of their execution through exchange mechanisms. The disadvantage of exchange transactions is their excessive standardization, the ability of the management team to work with financial instruments, as well as the need to comply with the requirements of margin trading. It’s good when those risks that an entrepreneur cannot hedge with the help of exchange and insurance instruments are not critical for his business. But what if they are significant? But what if there are several such risks? Moreover, when these risks are local in nature and affect several businesses differently in a fragmented local market? Then the solution to this problem may be the introduction of decentralized (off-exchange) financial derivatives.
The development of computing technologies and the emergence of cryptocurrencies have created the possibility of concluding direct smart contracts between economic agents, effectively redistributing risks between them and thereby creating prerequisites for further growth in economic efficiency in local markets, taking into account the local nature of their risks.
To realize the new opportunities that new technologies give us, we need to create a simple and understandable decentralized platform for trading derivative financial instruments (smart derivatives) that can be initiated by each market participant, create analytical methods for the basic assessment of financial contracts, ensure their implementation by introducing certain algorithms into the corresponding smart contracts, using the mechanism of collateral by different parties to the transaction. Another important tool for the implementation of such agreements is the inclusion, by mutual agreement of the parties, in smart derivatives of reliable information flows that provide another participant in the platform – the oracle.
It is these aspects of the formation of modern decentralized platforms that we will talk about during our meeting.Format: webinar on ZOOMThe meeting is held within the framework of the club program.
If you are not a member of the club, a guest visit is provided for you. You can use it once. Guest visit is valid for CFO only. The organizers have the right to refuse participation, as the number of guest places is limited.
We will be happy to answer your questions.
Call +38 067 192 48 67, Svitlana Vikarenko