The Role of Disclosure in DeFi Markets: Evidence from Twitter

Amanda AW YONG*

*Corresponding author for this work

Research output: Contribution to conferenceConference paperpeer-review


Decentralized Finance (DeFi) platforms use self-executing smart contracts to provide financial services and are programmed to automatically post all transactionson the public blockchain. Notwithstandingthispublic availability of blockchain information, DeFi platforms alsoaggregatethese transactionsand disclose the summarized blockchain informationon their Twitter accounts. This paper studies whether and how voluntary disclosure of blockchain information plays a role in the transparent DeFi market. I find that the number of blockchain-related tweets is associated both with an increase in the platform’s Total Value Locked (TVL)and with an increase in the unique number of platform users. The relationship between blockchain-related tweets and TVL is strengthened when the tweets have greater information content and when users face higher information processing costs. This suggests that public blockchain transactions are too costly for users to process such that they rely on the platform’s disclosure.Overall, my results show that DeFi platforms can help users process and understand blockchain transactions by summarizing and disclosing them on Twitter.
Original languageEnglish
Number of pages60
Publication statusPublished - 11 Jul 2023
Event2023 MIT Asia Conference in Accounting - Singapore Management University, Singapore, Singapore
Duration: 9 Jul 202311 Jul 2023 (Conference website) (Conference program) (Conference paper)


Conference2023 MIT Asia Conference in Accounting
OtherThe MIT Asia Conference in Accounting aims to bring together academics and practitioners of accounting and corporate governance in the Asia-Pacific region with leading scholars from the United States, Europe, and beyond.

The goal of this annual two-day conference is to incubate and develop rigorous and relevant research in the field of accounting, defined broadly. Through thoughtful and constructive workshops and interactions, the conference expects to encourage and facilitate researchers in Asia to employ the highest standards of academic diligence in addressing challenges that are topical to managers, investors, regulators, and/or market intermediaries such as auditors and analysts. Over time, the conference hopes to become a preeminent forum for cutting-edge accounting research in Asia.
Internet address

User-Defined Keywords

  • decentralized finance (defi),
  • cryptocurrency
  • disclosure
  • information processing costs


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