Geometry of q-Hypergeometric Functions as a Bridge between Yangians and   Quantum Affine Algebras
  The rational quantized Knizhnik-Zamolodchikov equation (qKZ equation) associated with the Lie algebra $sl_2$ is a system of linear difference equations with values in a tensor product of $sl_2$ Verma modules. We solve the equation in terms of multidimensional $q$-hypergeometric functions and define a natural isomorphism between the space of solutions and the tensor product of the corresponding quantum group $U_q(sl_2)$ Verma modules, where the parameter $q$ is related to the step $p$ of the qKZ equation via $q=e^{pi i/p}$.   We construct asymptotic solutions associated with suitable asymptotic zones and compute the transition functions between the asymptotic solutions in terms of the trigonometric $R$-matrices. This description of the transition functions gives a new connection between representation theories of Yangians and quantum loop algebras and is analogous to the Kohno-Drinfeld theorem on the monodromy group of the differential Knizhnik-Zamolodchikov equation.   In order to establish these results we construct a discrete Gauss-Manin connection, in particular, a suitable discrete local system, discrete homology and cohomology groups with coefficients in this local system, and identify an associated difference equation with the qKZ equation. 
Vitaly Tarasov and Alexander Varchenko