Dan Luo
Institution
The Chinese University of Hong Kong
PhD Year
2022
danluo@cuhk.edu.hk
FTG Membership
Member
Website
https://www.danluo.net/
Featured Work
Mar 3, 2026
Financing via Partially Liquid Tokens
We develop a Diamond-Dybvig-style model in which a non-bank firm issues tokens backed by its future services. Consumers face uncertain liquidity demand and costly ex-post borrowing. Tokens are partially liquid–they provide liquidity for the firm’s service but not other consumption
goods, creating an endogenous liquidity premium. This premium is influenced by the imperfect substitution between tokens and fully liquid claims, leading to a non-monotonic relationship with...
