BEGIN:VCALENDAR VERSION:2.0 PRODID:-//132.216.98.100//NONSGML kigkonsult.se iCalcreator 2.20.4// BEGIN:VEVENT UID:20260707T180028EDT-5903X768Us@132.216.98.100 DTSTAMP:20260707T220028Z DESCRIPTION:\n\nChallenges and Possibilities in Digital Financial Markets: Risk and Return\n\nBy Patrick Augustin\n\nAssociate Professor of Finance a t the Desautels Faculty of Management at 91ºÚÁÏÍø\, Canada Resear ch Chair in Macrofinance and Derivative\n\nWith High-Level Panel of Leader s in Science\, Technology\, On-the-Ground Action\, and Policy\n\n \n\nRegi ster & watch the webinar\n\nView poster\n\nThe digital economy has resulte d in a significant transformation of the finance sector. The research pres ented in this webinar focuses on the risk and return characteristics of yi eld farming investment strategies on PancakeSwap\, which is one of the lar gest auto- mated market makers within the emerging ecosystem of decentrali zed financial services. PancakeSwap offers various opportunities for earni ng passive income by pledging pairs of cryptocurrency tokens in liquidity pools and harvesting governance tokens in yield farms. This practice\, als o known as yield farming\, generates performance through different compone nts related to capital gains\, trading fee revenue\, and farm yields. Howe ver\, it is exposed to impermanent losses that are non-linearly driven by differential return performance in the underlying cryptocurrency token pai rs. The research reveals that yield farming provides positive Sharpe ratio s comparable to other cryptocurrency investments and the S&P500 index. How ever\, investment performance decreases significantly after accounting for transaction costs and price impact\, which is most significant for farms with the highest headline yields. This can lead to negative risk-adjusted returns. Moreover\, it is found that investors in high -yield farms tend t o chase past performance and high yields\, which leads to negative future returns. These patterns are similar to investment behavior and risk-return characteristics observed in traditional markets\, despite the absence of financial intermediaries. Since yield farming is easily accessible to reta il investors\, this analysis has important implications for the current de bate about the regulation of decentralized financial services. A panel dis cussion will follow to explore real-world solutions further.\n\nAbout the speaker\n\nPatrick Augustin holds the Canada Research Chair in Macrofinanc e and Derivative and is an Associate Professor of Finance at the Desautels Faculty of Management at 91ºÚÁÏÍø. He is also an Associate Fello w at the Canadian Derivatives Institute\, and the 2022 recipient of the Ba nk of Canada Governor’s Award. He holds a PhD degree in Finance from the S tockholm School of Economics and held visiting research positions at the N ew York University Stern School of Business\, the University of California Los Angeles Anderson School of Management\, the Stockholm School of Econo mics\, the University of Sydney\, and the Luxembourg School of Finance. He is certified as Financial Risk Manager by the Global Association of Risk Professionals and served as a Fellow at the Global Future Councils of the World Economic Forum. Before joining academia\, he worked as a structured credit officer at Dexia and as attaché to the Luxembourg Ministry of Forei gn Affairs. Patrick’s research interests lie at the intersection of macroe conomics and financial markets with a focus on sovereign credit risk\, fir m fundamentals and credit risk with a focus on credit derivatives\, and la w and finance with a focus on insider trading. Most recently\, he has beco me interested in the emergence of digital financial securities. His work h as been published in the Journal of Finance\, the Review of Financial Stud ies\, the Journal of Financial Economics\, the Journal of Monetary Economi cs\, Management Science\, and the Journal of Financial and Quantitative An alysis\, among others. His work has been widely covered in the financial p ress\, including The New York Times\, The Wall Street Journal\, The Washin gton Post\, Fortune\, and The Globe and Mail.\n\n\nAbout the series\n\nThe Precision Convergence series is launched to catalyze unique synergy betwe en\, on the one hand\, novel partnerships across sciences\, sectors and ju risdictions around targeted domains of real-world solutions\, and on the o ther hand\, a next generation convergence of AI with advanced research com puting and other data and digital architectures such as PSC’s Bridges-2\, and supporting data sharing frameworks such as HuBMAP\, informing in a rea l time as possible the design\, deployment and monitoring of solutions for adaptive real-world behaviour and context.\n\nThe Precision Convergence W ebinar Series is co-hosted by The 91ºÚÁÏÍø Centre for the Convergence of Hea lth and Economics (MCCHE) at 91ºÚÁÏÍø and The Pittsburgh Supercom puting Center\, a joint computational research centre between Carnegie Mel lon University and the University of Pittsburgh.\n\n \n DTSTART:20231101T180000Z DTEND:20231101T200000Z SUMMARY:MCCHE Precision Convergence Webinar Series with Patrick Augustin URL:/desautels/channels/event/mcche-precision-converge nce-webinar-series-patrick-augustin-350433 END:VEVENT END:VCALENDAR