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Decentralized finance (DeFi) markets spread across Layer-1 (L1) and Layer-2 (L2) blockchains rely on arbitrage to keep prices aligned. Today most price gaps are closed against centralized exchanges (CEXes), whose deep liquidity and fast…

Cryptography and Security · Computer Science 2025-06-19 Burak Öz , Christof Ferreira Torres , Christoph Schlegel , Bruno Mazorra , Jonas Gebele , Filip Rezabek , Florian Matthes

The registration, transfer, clearing and settlement of equities represents a significant part of economic activity currently underserved by modern technological innovation. In addition, recent events have revealed problems of transparency,…

Cryptography and Security · Computer Science 2016-12-22 Brent Kievit-Kylar , Chris Horlacher , Marc Godard , Christian Saucier

Liquidity providers (LPs) on decentralized exchanges (DEXs) can protect themselves from adverse selection risk by updating their positions more frequently. However, repositioning is costly, because LPs have to pay gas fees for each update.…

Trading and Market Microstructure · Quantitative Finance 2024-03-20 Basile Caparros , Amit Chaudhary , Olga Klein

As of July 15, 2023, Ethererum, which is a Proof-of-Stake (PoS) blockchain [1] has around 410 Billion USD in total assets on chain (popularly referred to as total-value-locked, TVL) but has only 33 Billion USD worth of ETH staked in…

Cryptography and Security · Computer Science 2024-01-12 Soubhik Deb , Robert Raynor , Sreeram Kannan

Blockchain-based cryptocurrencies, facilitating the convenience of payment by providing a decentralized online solution, have not been widely adopted so far due to slow confirmation of transactions. Offline delegation offers an efficient…

Cryptography and Security · Computer Science 2021-03-25 Rujia Li , Qin Wang , Xinrui Zhang , Qi Wang , David Galindo , Yang Xiang

The limit order book mechanism has been the core trading mechanism of the modern financial market. In the cryptocurrency market, centralized exchanges also adopt this limit order book mechanism and a centralized matching engine dynamically…

Computational Engineering, Finance, and Science · Computer Science 2022-12-21 Yeonwoo Jeong , Chanyoung Jeoung , Hosan Jeong , SangYoon Han , Juntae Kim

Optimal simple rules for the monetary policy of the first stochastically dominant crypto-currency are derived in a Dynamic Stochastic General Equilibrium (DSGE) model, in order to provide optimal responses to changes in inflation, output,…

Cryptography and Security · Computer Science 2022-10-13 David Cerezo Sánchez

Recently, the notion of cryptocurrencies has come to the fore of public interest. These assets that exist only in electronic form, with no underlying value, offer the owners some protection from tracking or seizure by government or…

Mathematical Finance · Quantitative Finance 2018-05-09 Carey Caginalp

Decentralized smart contracts enable trustless collaboration but suffer from limited privacy and scalability, which hinders broader adoption. Trusted Execution Environment (TEE) based off-chain execution frameworks offer a promising…

Cryptography and Security · Computer Science 2025-11-07 Keyu Zhang , Andrew Martin

An increasing number of industries rely on Internet-of-Things devices to track physical resources. Blockchain technology provides primitives to represent these resources as digital assets on a secure distributed ledger. Due to the…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-04-13 Martijn de Vos , Can Umut Ileri , Johan Pouwelse

Automated Market Maker (AMM)-based Decentralized Exchanges (DEXs) are crucial in Decentralized Finance (DeFi), but Ethereum implementations suffer from high transaction costs and price synchronization challenges. To address these…

Computational Engineering, Finance, and Science · Computer Science 2025-08-28 Walter Hernandez Cruz , Firas Dahi , Yebo Feng , Jiahua Xu , Aanchal Malhotra , Paolo Tasca

In this paper, we propose FedChain, a novel framework for federated-blockchain systems, to enable effective transferring of tokens between different blockchain networks. Particularly, we first introduce a federated-blockchain system…

Computer Science and Game Theory · Computer Science 2021-02-01 Cong T. Nguyen , Dinh Thai Hoang , Diep N. Nguyen , Yong Xiao , Hoang-Anh Pham , Eryk Dutkiewicz , Nguyen Huynh Tuong

This paper presents a comprehensive statistical analysis of the Web3 ecosystem, comparing various Web3 tokens with traditional financial assets across multiple time scales. We examine probability distributions, tail behaviors, and other key…

Statistical Finance · Quantitative Finance 2024-12-09 Wei-Ru Chen , A. Christian Silva , Shen-Ning Tung

Today's world is organized based on merit and value. A single global currency that's decentralized is needed for a global economy. Bitcoin is a partial solution to this need, however it suffers from scalability problems which prevent it…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-10-29 Iurii Shyshatsky , Vinod Manoharan , Taras Emelyanenko , Lucas Leger

Decentralized, offline, and privacy-preserving e-cash could fulfil the need for both scalable and byzantine fault-resistant payment systems. Existing offline anonymous e-cash schemes are unsuitable for distributed environments due to a…

Cryptography and Security · Computer Science 2023-03-16 Alfredo Rial , Ania M. Piotrowska

Stablecoins, digital assets pegged to a specific currency or commodity value, are heavily involved in transactions of major cryptocurrencies. The effects of deviations from their desired fixed values (depeggings) on the cryptocurrencies for…

Statistical Finance · Quantitative Finance 2022-05-16 Connor Oxenhorn

As the core issue of blockchain, the mining requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to high computing power needed. Thus, the development of blockchain in mobile applications…

Computer Science and Game Theory · Computer Science 2018-11-20 Zehui Xiong , Shaohan Feng , Dusit Niyato , Ping Wang , Zhu Han

Trusted execution environment (TEE) technology has found many applications in mitigating various security risks in an efficient manner, which is attractive for critical infrastructure protection. First, the natural of critical…

Cryptography and Security · Computer Science 2023-09-14 Rabimba Karanjai , Rowan Collier , Zhimin Gao , Lin Chen , Xinxin Fan , Taeweon Suh , Weidong Shi , Lei Xu

We consider the problem of learning stable matchings with unknown preferences in a decentralized and uncoordinated manner, where "decentralized" means that players make decisions individually without the influence of a central platform, and…

Computer Science and Game Theory · Computer Science 2024-08-16 S. Rasoul Etesami , R. Srikant

Financial markets have evolved over centuries, and exchanges have converged to rely on the order book mechanism for market making. Latency on the blockchain, however, has prevented decentralized exchanges (DEXes) from utilizing the order…

Pricing of Securities · Quantitative Finance 2022-11-11 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer
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