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The blockchain technology promises to transform finance, money and even governments. However, analyses of blockchain applicability and robustness typically focus on isolated systems whose actors contribute mainly by running the consensus…

Physics and Society · Physics 2019-04-09 Manlio De Domenico , Andrea Baronchelli

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

Decentralized Finance (DeFi) is built on a fundamentally different paradigm: rather than having to trust individuals and institutions, participants in DeFi potentially only have to trust computer code that is enforced by a decentralized…

General Economics · Economics 2022-07-14 Kanis Saengchote , Talis Putniņš , Krislert Samphantharak

The evolution of cryptocurrency and decentralized finance (DeFi) marks a significant shift in the financial landscape, making it more accessible, inclusive, and participative for various societal groups. However, this transition from…

General Finance · Quantitative Finance 2024-07-03 Amrutha Muralidhar , Muralidhar Lakkanna

Ethereum and its standardized token interface have formed decentralized finance (DeFi), an open financial system based on blockchain smart contracts. The DeFi ecosystem has become richer with the introduction of DeFi composability projects,…

Computer Science and Game Theory · Computer Science 2022-12-05 HyoungSung Kim , Hyun-Sik Kim , Yong-Suk Park

We develop a model of stable assets, including non-custodial stablecoins backed by cryptocurrencies. Such stablecoins are popular methods for bootstrapping price stability within public blockchain settings. We derive fundamental results…

Trading and Market Microstructure · Quantitative Finance 2023-03-31 Ariah Klages-Mundt , Andreea Minca

Currently, the advantages of decentralization through blockchain technology in the financial sector are actively discussed. In this article, we investigate the decentralization in the governance of Decentralized Autonomous Organizations…

General Finance · Quantitative Finance 2023-11-07 Kirill Kolmykov

This paper presents an adversary model and a simulation framework specifically tailored for analyzing attacks on distributed systems composed of multiple distributed protocols, with a focus on assessing the security of blockchain networks.…

Cryptography and Security · Computer Science 2025-04-18 Erwan Mahe , Rouwaida Abdallah , Pierre-Yves Piriou , Sara Tucci-Piergiovanni

Decentralized finance (DeFi) has become one of the most successful applications of blockchain and smart contracts. The DeFi ecosystem enables a wide range of crypto-financial activities, while the underlying smart contracts often contain…

Cryptography and Security · Computer Science 2021-04-20 Palina Tolmach , Yi Li , Shang-Wei Lin , Yang Liu

Sanctioning blockchain addresses has become a common regulatory response to malicious activities. However, enforcement on permissionless blockchains remains challenging due to complex transaction flows and sophisticated fund-obfuscation…

Cryptography and Security · Computer Science 2026-05-21 Endong Liu , Mark Ryan , Liyi Zhou , Pascal Berrang

We present and validate a novel mathematical model of the blockchain mining process and use it to conduct an economic evaluation of the double-spend attack, which is fundamental to all blockchain systems. Our analysis focuses on the value…

Cryptography and Security · Computer Science 2016-11-22 George Bissias , Brian Neil Levine , A. Pinar Ozisik , Gavin Andresen

Scalability and security problems of the centralized architecture models in cyberphysical systems have great potential to be solved by novel blockchain based distributed models.A decentralized energy trading system takes advantage of…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-04-21 Faizan Ali , Moayad Aloqaily , Omar Alfandi , Oznur Ozkasap

The rise of Web3 and Decentralized Finance (DeFi) has enabled borderless access to financial services empowered by smart contracts and blockchain technology. However, the ecosystem's trustless, permissionless, and borderless nature presents…

Cryptography and Security · Computer Science 2025-09-29 Hesam Sarkhosh , Uzma Maroof , Diogo Barradas

The application of Bitcoin enables people to understand blockchain technology gradually. Bitcoin is a decentralized currency that does not rely on third-party credit institutions, and the core of Bitcoin's underlying technology is…

Cryptography and Security · Computer Science 2025-04-15 Yuhuan Yang , Shipeng Ye , Xiaoqi Li

We introduce the Clockwork Finance Framework (CFF), a general purpose, formal verification framework for mechanized reasoning about the economic security properties of composed decentralized-finance (DeFi) smart contracts. CFF features…

Cryptography and Security · Computer Science 2023-05-22 Kushal Babel , Philip Daian , Mahimna Kelkar , Ari Juels

Financial options are fundamental to traditional markets, enabling strategies ranging from hedging to speculating. Yet, while the Automated Market Maker paradigm has revolutionized decentralized spot markets, no equivalent standard has…

Mathematical Finance · Quantitative Finance 2026-05-20 Maxim Bichuch , Zachary Feinstein

Blockchain systems often rely on rationality assumptions for their security, expecting that nodes are motivated to maximize their profits. These systems thus design their protocols to incentivize nodes to execute the honest protocol but…

Computer Science and Game Theory · Computer Science 2023-05-02 Haoqian Zhang , Mahsa Bastankhah , Louis-Henri Merino , Vero Estrada-Galiñanes , Bryan Ford

Banking as an essential service can be hard to access in remote, rural regions where the network connectivity is intermittent. Although micro-banking has been made possible by SMS or USSD messages in some places, their security flaws and…

Decentralized Finance (DeFi), propelled by Blockchain technology, has revolutionized traditional financial systems, improving transparency, reducing costs, and fostering financial inclusion. However, transaction activities in these systems…

Cryptography and Security · Computer Science 2023-12-22 Hou-Wan Long , Xiongfei Zhao , Yain-Whar Si

Fraud across the decentralized finance (DeFi) ecosystem is growing, with victims losing billions to DeFi scams every year. However, there is a disconnect between the reported value of these scams and associated legal prosecutions. We use…

Cryptography and Security · Computer Science 2023-05-29 Arianna Trozze , Toby Davies , Bennett Kleinberg
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