This report presents the outcome of the study undertaken by IBM Promontory for the European Commission on embedding supervision in the decentralized finance (DeFi). The project comprised four distinct phases: identifying use cases and protocols to assess, defining elements of comparison (benchmarks) to supervision in traditional finance (TradFi), developing a software application to collect data from the ledger, and analysing the collected data to assess the potential of embedded supervision. After analysing four use cases and eight protocols,