Authors:
(1) Johannes Rude Jensen, University of Copenhagen, eToroX Labs (johannesrudejensen@gmail.com);
(2) Victor von Wachter, University of Copenhagen (victor.vonwachter@di.ku.dk);
(3) Omri Ross, University of Copenhagen, eToroX Labs (omri@di.ku.dk). Table of Links Abstract and Introduction 1 Literature Review 2 Methodology and Artefact Requirements 3 The Implementation and Integration of the Artefact 4 Artefact Evaluation 5 Discussion 6 Conclusion and Future Work, and References 6 Conclusion and Future Work 6 Conclusion and Future Work In this paper, we present ongoing efforts towards the research question: To what extent can blockchain technology improve the execution of a leveraged trade? Utilizing the DSR methodology we demonstrate the implementation and initial integration of a digital artefact, utilizing the Dai Stablecoin system to deterministically automate the processes required to monitor and liquidate a leveraged position. The initial attempt at integrating the artefact into a traditional exchange operation presented several necessary compromises required to maintain the integrity of the secured exchange environment. Future work on this artefact will seek to bridge the chasm between permissionless blockchain technology and the hardened enterprise environment. Our work will examine the feasibility of exposing the browser-based wallet API to internally managed hot-wallets alongside an examination of whether the recursive operation can be conducted utilizing internal liquidity. References Antonopoulos, A. M., and Wood, G. 2018. Mastering Ethereum: Building Smart Contracts and Dapps, O’Reilly Media. Beinke, J. H., and Nguyen Ngoc, D. 2018. “Towards a Business Model Taxonomy of Startups in the Finance Sector Using Blockchain,” 39th International Conference on Information Systems (December), pp. 1–9. Castellanos, J. A. F., Coll-Mayor, D., and Notholt, J. A. 2017. “Cryptocurrency as Guarantees of Origin: Simulating a Green Certificate Market with the Ethereum Blockchain,” in 2017 IEEE International Conference on Smart Energy Grid Engineering (SEGE), IEEE, pp. 367–372. Dai, J., and Vasarhelyi, M. A. 2017. “Toward Blockchain-Based Accounting and Assurance,” Journal of Information Systems (31:3), pp. 5–21. Egelund-Müller, B., Elsman, M., Henglein, F., and Ross, O. 2017. “Automated Execution of Financial Contracts on Blockchains,” Business and Information Systems Engineering (59:6), pp. 457–467. Fridgen, G., Urbach, N., and Schweizer, A. 2017. “Unchaining Social Businesses-Blockchain as the Basic Technology of a Crowdlending Platform IT-Management Im Zeitalter Der Digitalisierung View Project.” Glaser, F. 2017. “Pervasive Decentralisation of Digital Infrastructures: A Framework for Blockchain Enabled System and Use Case Analysis,” Proceedings of the 50th Hawaii International Conference on System Sciences (HICSS-50), pp. 1543–1552. Gregor, S., and Hevner, A. R. 2013. “Positioning and Presenting Design Science Research for Maximum Impact,” MIS Quarterly (37:2), pp. 337–356. Ken Peffers, Tuure Tuunanen, Marcus A. Rothenberger, and Samir Chatterjee. 2007. “A Design Science Research Methodology for Information Systems Research,” Journal of Management Information Systems (24:3), pp. 45–77. Labazova, O. 2019. “Towards a Framework for Evaluation of Blockchain Implementations,” in Fortieth International Conference on Information Systems. Lindman, J., Tuunainen, V. K., and Rossi, M. 2017. “Opportunities and Risks of Blockchain Technologies: A Research Agenda,” in Proceedings of the 50th Hawaii International Conference on System Sciences (2017), pp. 1533–1542. Moyano, J. P., and Ross, O. 2017. “KYC Optimization Using Distributed Ledger Technology,” Business & Information Systems Engineering (59:6), Springer, pp. 411–423. Müller-Bloch, C., Beck, R., and Palmund, S. 2017. “Blockchain to Rule the Waves-Nascent Design Principles for Reducing Risk and Uncertainty in Decentralized Environments,” Proceedings of the 38th International Conference on Information Systems (September), pp. 1–16. Myers, M. D., and Newman, M. 2007. “The Qualitative Interview in IS Research: Examining the Craft,” Information and Organization (17:1), pp. 2–26. Pedersen, A. B., Risius, M., and Beck, R. 2019. “Blockchain Decision Path: When to Use Blockchains? Which Blockchains Do You Mean?,” MIS Quarterly Executive (18:2), p. 24. (https://pure.itu.dk/ws/files/83594249/MISQe_BC_in_the_Maritime_Shipping_Industry_Revisio n.pdf). Rai, A. 2017. “Diversity of Design Science Research,” MIS Quarterly (41:1), iii–xviii. Ross, O., Jensen, J., and Asheim, T. 2019. “Assets under Tokenization: Can Blockchain Technology Improve Post-Trade Processing?,” in Fortieth International Conference on Information Systems, Munich 2019. Rossi, M., Mueller-Bloch, C., Thatcher, J. B., and Beck, R. 2019. “Blockchain Research in Information Systems: Current Trends and an Inclusive Future Research Agenda,” Journal of the Association for Information Systems (20:9), pp. 1388–1403. Schlagwein, D., Conboy, K., Feller, J., Leimeister, J. M., and Morgan, L. 2017. “‘openness’ with and without Information Technology: A Framework and a Brief History,” Journal of Information Technology (32:4), Palgrave Macmillan UK, pp. 297–305. Weinhardt, C., Anandasivam, A., Blau, B., Borissov, N., Meinl, T., Michalk, W., and Stößer, J. 2009. “Cloud Computing – A Classification, Business Models, and Research Directions,” Business & Information Systems Engineering (1:5), pp. 391–399. This paper is available on arxiv under CC BY 4.0 DEED license. Authors: (1) Johannes Rude Jensen, University of Copenhagen, eToroX Labs (johannesrudejensen@gmail.com); (2) Victor von Wachter, University of Copenhagen (victor.vonwachter@di.ku.dk); (3) Omri Ross, University of Copenhagen, eToroX Labs (omri@di.ku.dk). Authors: Authors: (1) Johannes Rude Jensen, University of Copenhagen, eToroX Labs (johannesrudejensen@gmail.com); (2) Victor von Wachter, University of Copenhagen (victor.vonwachter@di.ku.dk); (3) Omri Ross, University of Copenhagen, eToroX Labs (omri@di.ku.dk). Table of Links Abstract and Introduction Abstract and Introduction 1 Literature Review 1 Literature Review 2 Methodology and Artefact Requirements 2 Methodology and Artefact Requirements 3 The Implementation and Integration of the Artefact 3 The Implementation and Integration of the Artefact 4 Artefact Evaluation 4 Artefact Evaluation 5 Discussion 5 Discussion 6 Conclusion and Future Work, and References 6 Conclusion and Future Work, and References 6 Conclusion and Future Work 6 Conclusion and Future Work In this paper, we present ongoing efforts towards the research question: To what extent can blockchain technology improve the execution of a leveraged trade? Utilizing the DSR methodology we demonstrate the implementation and initial integration of a digital artefact, utilizing the Dai Stablecoin system to deterministically automate the processes required to monitor and liquidate a leveraged position. The initial attempt at integrating the artefact into a traditional exchange operation presented several necessary compromises required to maintain the integrity of the secured exchange environment. To what extent can blockchain technology improve the execution of a leveraged trade? Future work on this artefact will seek to bridge the chasm between permissionless blockchain technology and the hardened enterprise environment. Our work will examine the feasibility of exposing the browser-based wallet API to internally managed hot-wallets alongside an examination of whether the recursive operation can be conducted utilizing internal liquidity. References Antonopoulos, A. M., and Wood, G. 2018. Mastering Ethereum: Building Smart Contracts and Dapps, O’Reilly Media. Beinke, J. H., and Nguyen Ngoc, D. 2018. “Towards a Business Model Taxonomy of Startups in the Finance Sector Using Blockchain,” 39th International Conference on Information Systems (December), pp. 1–9. Castellanos, J. A. F., Coll-Mayor, D., and Notholt, J. A. 2017. “Cryptocurrency as Guarantees of Origin: Simulating a Green Certificate Market with the Ethereum Blockchain,” in 2017 IEEE International Conference on Smart Energy Grid Engineering (SEGE), IEEE, pp. 367–372. Dai, J., and Vasarhelyi, M. A. 2017. “Toward Blockchain-Based Accounting and Assurance,” Journal of Information Systems (31:3), pp. 5–21. Egelund-Müller, B., Elsman, M., Henglein, F., and Ross, O. 2017. “Automated Execution of Financial Contracts on Blockchains,” Business and Information Systems Engineering (59:6), pp. 457–467. Fridgen, G., Urbach, N., and Schweizer, A. 2017. “Unchaining Social Businesses-Blockchain as the Basic Technology of a Crowdlending Platform IT-Management Im Zeitalter Der Digitalisierung View Project.” Glaser, F. 2017. “Pervasive Decentralisation of Digital Infrastructures: A Framework for Blockchain Enabled System and Use Case Analysis,” Proceedings of the 50th Hawaii International Conference on System Sciences (HICSS-50), pp. 1543–1552. Gregor, S., and Hevner, A. R. 2013. “Positioning and Presenting Design Science Research for Maximum Impact,” MIS Quarterly (37:2), pp. 337–356. Ken Peffers, Tuure Tuunanen, Marcus A. Rothenberger, and Samir Chatterjee. 2007. “A Design Science Research Methodology for Information Systems Research,” Journal of Management Information Systems (24:3), pp. 45–77. Labazova, O. 2019. “Towards a Framework for Evaluation of Blockchain Implementations,” in Fortieth International Conference on Information Systems. Lindman, J., Tuunainen, V. K., and Rossi, M. 2017. “Opportunities and Risks of Blockchain Technologies: A Research Agenda,” in Proceedings of the 50th Hawaii International Conference on System Sciences (2017), pp. 1533–1542. Moyano, J. P., and Ross, O. 2017. “KYC Optimization Using Distributed Ledger Technology,” Business & Information Systems Engineering (59:6), Springer, pp. 411–423. Müller-Bloch, C., Beck, R., and Palmund, S. 2017. “Blockchain to Rule the Waves-Nascent Design Principles for Reducing Risk and Uncertainty in Decentralized Environments,” Proceedings of the 38th International Conference on Information Systems (September), pp. 1–16. Myers, M. D., and Newman, M. 2007. “The Qualitative Interview in IS Research: Examining the Craft,” Information and Organization (17:1), pp. 2–26. Pedersen, A. B., Risius, M., and Beck, R. 2019. “Blockchain Decision Path: When to Use Blockchains? Which Blockchains Do You Mean?,” MIS Quarterly Executive (18:2), p. 24. (https://pure.itu.dk/ws/files/83594249/MISQe_BC_in_the_Maritime_Shipping_Industry_Revisio n.pdf). Rai, A. 2017. “Diversity of Design Science Research,” MIS Quarterly (41:1), iii–xviii. Ross, O., Jensen, J., and Asheim, T. 2019. “Assets under Tokenization: Can Blockchain Technology Improve Post-Trade Processing?,” in Fortieth International Conference on Information Systems, Munich 2019. Rossi, M., Mueller-Bloch, C., Thatcher, J. B., and Beck, R. 2019. “Blockchain Research in Information Systems: Current Trends and an Inclusive Future Research Agenda,” Journal of the Association for Information Systems (20:9), pp. 1388–1403. Schlagwein, D., Conboy, K., Feller, J., Leimeister, J. M., and Morgan, L. 2017. “‘openness’ with and without Information Technology: A Framework and a Brief History,” Journal of Information Technology (32:4), Palgrave Macmillan UK, pp. 297–305. Weinhardt, C., Anandasivam, A., Blau, B., Borissov, N., Meinl, T., Michalk, W., and Stößer, J. 2009. “Cloud Computing – A Classification, Business Models, and Research Directions,” Business & Information Systems Engineering (1:5), pp. 391–399. This paper is available on arxiv under CC BY 4.0 DEED license. This paper is available on arxiv under CC BY 4.0 DEED license. available on arxiv

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The Future of Leveraged Trading on Blockchain

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