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The rise of Ethereum and other blockchains that support smart contracts has led to the creation of decentralized exchanges (DEXs), such as Uniswap, Balancer, Curve, mStable, and SushiSwap, which enable agents to trade cryptocurrencies…

Optimization and Control · Mathematics 2021-07-28 Guillermo Angeris , Akshay Agrawal , Alex Evans , Tarun Chitra , Stephen Boyd

We identify the slow liquidity drain (SLID) scam, an insidious and highly profitable threat to decentralized finance (DeFi), posing a large-scale, persistent, and growing risk to the ecosystem. Unlike traditional scams such as rug pulls or…

Cryptography and Security · Computer Science 2025-08-07 Minh Trung Tran , Nasrin Sohrabi , Zahir Tari , Qin Wang , Minhui Xue , Xiaoyu Xia

Uniswap is a decentralized exchange (DEX) and was first launched on November 2, 2018 on the Ethereum mainnet [1] and is part of an Ecosystem of products in Decentralized Finance (DeFi). It replaces a traditional order book type of trading…

Trading and Market Microstructure · Quantitative Finance 2021-06-29 Andreas A. Aigner , Gurvinder Dhaliwal

High-frequency trading, in both traditional and decentralized markets, induces latency races and redundant order flow as traders spend resources to win time-sensitive opportunities. We show that auctioning artificial time priority can…

Computer Science and Game Theory · Computer Science 2026-02-17 Agostino Capponi , Brian Zhu

Edge computing has become increasingly popular across many domains and enterprises. However, given the locality constraint of edges (i.e., only close-by edges are useful), multiplexing diverse workloads becomes challenging. This results in…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-06-26 Faria Kalim , Shadi A. Noghabi

Financial speculators often seek to increase their potential gains with leverage. Debt is a popular form of leverage, and with over 39.88B USD of total value locked (TVL), the Decentralized Finance (DeFi) lending markets are thriving.…

General Finance · Quantitative Finance 2021-10-04 Kaihua Qin , Liyi Zhou , Pablo Gamito , Philipp Jovanovic , Arthur Gervais

Automated market makers are a popular mechanism used on decentralized exchange, through which users trade assets with each other directly and automatically through a liquidity pool and a fixed pricing function. The liquidity provider…

Mathematical Finance · Quantitative Finance 2024-11-27 Xue Dong He , Chen Yang , Yutian Zhou

We define a class of pure exchange Edgeworth trading processes that under minimal assumptions converge to a stable set in the space of allocations, and characterise the Pareto set of these processes. Choosing a specific process belonging to…

Econometrics · Economics 2022-03-28 Daniele Cassese , Paolo Pin

Decentralized Finance (DeFi) services are moving traditional financial operations to the Internet of Value (IOV) by exploiting smart contracts, distributed ledgers, and clever heterogeneous transactions among different protocols. The…

General Economics · Economics 2023-07-18 Teng Andrea Xu , Jiahua Xu

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

In recent years, there is an emerging trend that some computing services are moving from cloud to the edge of the networks. Compared to cloud computing, edge computing can provide services with faster response, lower expense, and more…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-06-30 Jinyue Song , Tianbo Gu , Yunjie Ge , Prasant Mohapatra

Decentralized exchanges (DEXs) form a cornerstone of the decentralized finance (DeFi) ecosystem, processing token trades worth billions of dollars daily. Yet, a significant fraction of these trades are suboptimal: alternative routing paths…

Computational Engineering, Finance, and Science · Computer Science 2025-09-26 Yu Zhang , Claudio J. Tessone

The efficiency of decentralized exchanges (DEXs) and the influence of token routing algorithms on market performance and stakeholder outcomes remain underexplored. This paper introduces the concept of Standardized Total Arbitrage Profit…

Trading and Market Microstructure · Quantitative Finance 2025-08-06 Yu Zhang , Claudio J. Tessone

Decentralized exchanges (DEXs) are a cornerstone of decentralized finance (DeFi), allowing users to trade cryptocurrencies without the need for third-party authorization. Investors are incentivized to deposit assets into liquidity pools,…

Artificial Intelligence · Computer Science 2023-09-20 Haochen Zhang , Xi Chen , Lin F. Yang

Previous work on ad hoc network capacity has focused primarily on source-destination throughput requirements for different models and transmission scenarios, with an emphasis on delay tolerant applications. In such problems, network…

Information Theory · Computer Science 2007-07-13 Cristina Comaniciu , H. Vincent Poor

High-frequency market making is a liquidity-providing trading strategy that simultaneously generates many bids and asks for a security at ultra-low latency while maintaining a relatively neutral position. The strategy makes a profit from…

Computational Engineering, Finance, and Science · Computer Science 2021-10-01 Pankaj Kumar

Trade execution on Decentralized Exchanges (DEXes) is automatic and does not require individual buy and sell orders to be matched. Instead, liquidity aggregated in pools from individual liquidity providers enables trading between…

Risk Management · Quantitative Finance 2022-09-23 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer

Opening up data produced by the Internet of Things (IoT) and mobile devices for public utilization can maximize their economic value. Challenges remain in the trustworthiness of the data sources and the security of the trading process,…

Cryptography and Security · Computer Science 2025-11-25 Yue Li , Ifteher Alom , Wenhai Sun , Yang Xiao

Haptic teleoperation typically demands sub-millisecond latency and ultra-high reliability (99.999%) in Tactile Internet. At a 1 kHz haptic signal sampling rate, this translates into an extremely high packet transmission rate, posing…

Signal Processing · Electrical Eng. & Systems 2026-03-25 Georgios Kokkinis , Alexandros Iosifidis , Qi Zhang

This paper investigates the role of flexible connection in accelerating the interconnection of large loads amid rising electricity demand from data centers and electrification. Flexible connection allows new loads to defer or curtail…

Systems and Control · Electrical Eng. & Systems 2025-10-14 Nan Gu , Ge Chen , Junjie Qin