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There is a pervasive assumption that low latency access to an exchange is a key factor in the profitability of many high-frequency trading strategies. This belief is evidenced by the "arms race" undertaken by certain financial firms to…

Trading and Market Microstructure · Quantitative Finance 2020-06-17 David Byrd , Sruthi Palaparthi , Maria Hybinette , Tucker Hybinette Balch

We advocate to create a \emph{spot} Internet transit market, where transit is sold using the under-utilized backbone capacity at a lower price. The providers can improve profit by capitalizing the perishable capacity, and customers can buy…

Networking and Internet Architecture · Computer Science 2013-09-26 Hong Xu , Baochun Li

We study liquidity on decentralized exchanges (DEXs), identifying factors at the platform, blockchain, token pair, and liquidity pool levels with predictive power for market depth metrics. We introduce the v2 counterfactual spread metric, a…

Trading and Market Microstructure · Quantitative Finance 2025-01-20 Brian Z. Zhu , Dingyue Liu , Xin Wan , Gordon Liao , Ciamac C. Moallemi , Brad Bachu

Liquidity providers are currently incentivised to provide liquidity through the LP Incentives Programme on dYdX. Based on the various parameters - makerVolume, depths and spreads, they are rewarded accordingly based on their activities.…

General Finance · Quantitative Finance 2023-07-11 Colin Chan

We consider issues of time in automated trading strategies in simulated financial markets containing a single exchange with public limit order book and continuous double auction matching. In particular, we explore two effects: (i) reaction…

Multiagent Systems · Computer Science 2021-03-02 Henry Hanifan , Ben Watson , John Cartlidge , Dave Cliff

We investigate how liquidity providers (LPs) choose between high- and low-fee trading venues, in the face of a fixed common gas cost. Analyzing Uniswap data, we find that high-fee pools attract 58% of liquidity supply yet execute only 21%…

Trading and Market Microstructure · Quantitative Finance 2024-05-24 Alfred Lehar , Christine Parlour , Marius Zoican

Decentralized exchanges (DEXes) have evolved dramatically since the introduction of Automated Market Makers (AMMs). In recent years, solver-based protocols have emerged as an alternative venue aiming to introduce competition for routing,…

Computational Engineering, Finance, and Science · Computer Science 2025-05-08 Yuki Yuminaga , Dex Chen , Danning Sui

The increasing integration of renewable energy sources and distributed energy resources (DER) into modern power systems introduces significant uncertainty, posing challenges for maintaining grid flexibility and reliability. Hybrid energy…

Systems and Control · Electrical Eng. & Systems 2025-10-31 Tanmay Mishra , Dakota Hamilton , Mads R. Almassalkhi

The transaction ordering dependency of the smart contracts building decentralized exchanges (DEXes) allow for predatory trading strategies. In particular, front-running attacks present a constant risk for traders on DEXes. Whereas legal…

Computer Science and Game Theory · Computer Science 2024-09-09 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer

We postulates, and then show experimentally, that liquidity deficit is the driving force of the markets. In the first part of the paper a kinematic of liquidity deficit is developed. The calculus-like approach, which is based on…

Computational Finance · Quantitative Finance 2016-12-07 Vladislav Gennadievich Malyshkin , Ray Bakhramov

We investigate a market with a normal-speed informed trader (IT) who may employ mixed strategy and multiple anticipatory high-frequency traders (HFTs) who are under different inventory pressures, in a three-period Kyle's model. The pure-…

Trading and Market Microstructure · Quantitative Finance 2024-03-14 Ziyi Xu , Xue Cheng

With the surge in cloud storage adoption, enterprises face challenges managing data duplication and exponential data growth. Deduplication mitigates redundancy, yet maintaining redundancy ensures high availability, incurring storage costs.…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-12-10 Sabbir Ahmed , Md Nahiduzzaman , Tariqul Islam , Faisal Haque Bappy , Tarannum Shaila Zaman , Raiful Hasan

Distributed Ledger Technology (DLT) is promising to become the foundation of many decentralised systems. However, the unbalanced and unregulated network layout contributes to the inefficiency of DLT especially in the Internet of Things…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-01-22 Yibin Xu , Yangyu Huang

As an integral part of the decentralized finance (DeFi) ecosystem, decentralized exchanges (DEXs) with automated market maker (AMM) protocols have gained massive traction with the recently revived interest in blockchain and distributed…

Trading and Market Microstructure · Quantitative Finance 2023-03-16 Jiahua Xu , Krzysztof Paruch , Simon Cousaert , Yebo Feng

Heterogeneous wireless networks (HetNets) provide a means to increase network capacity by introducing small cells and adopting a layered architecture. HetNets allocate resources flexibly through time sharing and cell range…

Networking and Internet Architecture · Computer Science 2014-08-11 Stephen V. Hanly , Chunshan Liu , Phil Whiting

Most Internet traffic is carried by capacity-seeking protocols such as TCP and QUIC. Capacity-seeking protocols probe to find the maximum available throughput from sender to receiver, and, once they converge, attempt to keep sending traffic…

Networking and Internet Architecture · Computer Science 2022-11-15 Bjørn Ivar Teigen , Neil Davies , Kai Olav Ellefsen , Tor Skeie , Carlo Augusto Grazia , Jim Torresen

Decentralized Exchanges (DEXes) enable users to create markets for exchanging any pair of cryptocurrencies. The direct exchange rate of two tokens may not match the cross-exchange rate in the market, and such price discrepancies open up…

Trading and Market Microstructure · Quantitative Finance 2022-01-17 Ye Wang , Yan Chen , Haotian Wu , Liyi Zhou , Shuiguang Deng , Roger Wattenhofer

DEX, or decentralized exchange, is a prominent class of decentralized finance (DeFi) applications on blockchains, attracting a total locked value worth tens of billions of USD today. This paper presents the first large-scale empirical study…

Cryptography and Security · Computer Science 2024-01-23 Jiaqi Chen , Yibo Wang , Yuxuan Zhou , Wanning Ding , Yuzhe Tang , XiaoFeng Wang , Kai Li

Zero-Liquidation loans allow DeFi users to borrow USDC against their ETH holdings, but without the risk of being liquidated in case of LTV shortfalls. This is achieved by giving users the option to repay their loans, either in USDC or…

Risk Management · Quantitative Finance 2021-10-27 Aetienne Sardon

The design of better exchange-correlation functionals for Density Functional Theory (DFT) is a central challenge of modern electronic structure theory. However, current developments are limited by the mathematical form of the functional,…

Chemical Physics · Physics 2024-08-19 Kyle Bystrom , Boris Kozinsky