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Decentralized Finance (DeFi) is a system of financial products and services built and delivered through smart contracts on various blockchains. In the past year, DeFi has gained popularity and market capitalization. However, it has also…

Machine Learning · Computer Science 2023-05-29 Arianna Trozze , Bennett Kleinberg , Toby Davies

Decentralized finance (DeFi) protocols are crypto projects developed on the blockchain to manage digital assets. Attacks on DeFi have been frequent and have resulted in losses exceeding \$77 billion. However, detection methods for malicious…

Cryptography and Security · Computer Science 2024-05-21 Wenkai Li , Xiaoqi Li , Yuqing Zhang , Zongwei Li

Decentralized Finance (DeFi) is reshaping traditional finance by enabling direct transactions without intermediaries, creating a rich source of open financial data. Layer 2 (L2) solutions are emerging to enhance the scalability and…

General Economics · Economics 2025-08-11 Nir Chemaya , Lin William Cong , Emma Jorgensen , Dingyue Liu , Luyao Zhang

Decentralized finance, powered by blockchain technology, is growing day by day. This field, which emerged a few years ago, today manages $70 billion in assets. In this study, the concept of decentralized finance is discussed and explained…

General Finance · Quantitative Finance 2023-04-05 Mansur Bestas

Decentralized Autonomous Organization (DAO) is very popular in Decentralized Finance (DeFi) applications as it provides a decentralized governance solution through blockchain. We analyze the governance characteristics in the Maker protocol,…

Cryptography and Security · Computer Science 2023-03-24 Xiaotong Sun , Charalampos Stasinakis , Georigios Sermpinis

We argue that recent developments in proof-of-work consensus mechanisms can be used in accordance with advancements in formal verification techniques to build a distributed payment protocol that addresses important economic drawbacks from…

Cryptography and Security · Computer Science 2020-05-14 Assimakis Kattis , Fabian Trottner

Decentralized Finance (DeFi), a blockchain powered peer-to-peer financial system, is mushrooming. Two years ago the total value locked in DeFi systems was approximately 700m USD, now, as of April 2022, it stands at around 150bn USD. The…

Cryptography and Security · Computer Science 2022-09-16 Sam M. Werner , Daniel Perez , Lewis Gudgeon , Ariah Klages-Mundt , Dominik Harz , William J. Knottenbelt

We introduce a decentralised, algorithmic framework for permissionless, multi-strategy capital allocation via tokenised, automated vaults. The system is designed to function analogously to a multi-strategy asset management company, but…

General Finance · Quantitative Finance 2025-09-25 Arman Abgaryan , Utkarsh Sharma , Joshua Tobkin

Decentralized Finance (DeFi) is a nascent set of financial services, using tokens, smart contracts, and blockchain technology as financial instruments. We investigate four possible drivers of DeFi returns: exposure to cryptocurrency market,…

Computational Finance · Quantitative Finance 2024-03-07 Florentina Şoiman , Guillaume Dumas , Sonia Jimenez-Garces

Since the inception of permissionless blockchains with Bitcoin in 2008, it became apparent that their most well-suited use case is related to making the financial system and its advantages available to everyone seamlessly without depending…

General Finance · Quantitative Finance 2023-06-16 Georgios Palaiokrassas , Sandro Scherrers , Iason Ofeidis , Leandros Tassiulas

We curate the DeXposure dataset, the first large-scale dataset for inter-protocol credit exposure in decentralized financial networks, covering global markets of 43.7 million entries across 4.3 thousand protocols, 602 blockchains, and 24.3…

Machine Learning · Computer Science 2025-12-01 Wenbin Wu , Kejiang Qian , Alexis Lui , Christopher Jack , Yue Wu , Peter McBurney , Fengxiang He , Bryan Zhang

We present efficient protocols for amortized secure multiparty computation with penalties and secure cash distribution, of which poker is a prime example. Our protocols have an initial phase where the parties interact with a cryptocurrency…

Cryptography and Security · Computer Science 2017-02-14 Iddo Bentov , Ranjit Kumaresan , Andrew Miller

The financial sector's adoption of technology-driven data analysis has enhanced operational efficiency and revenue generation by leveraging personal sensitive data. However, the inherent characteristics of blockchain hinder decentralized…

Cryptography and Security · Computer Science 2023-11-13 Zhuangtong Huang , Jiawei Zhu , Zhongyu Huang , Yixin Xu , Jerome Yen , Ye Wang

Decentralized Finance (DeFi) leverages blockchain-enabled smart contracts to deliver automated and trustless financial services without the need for intermediaries. However, the public visibility of financial transactions on the blockchain…

Cryptography and Security · Computer Science 2025-10-20 Huned Materwala , Shraddha M. Naik , Aya Taha , Tala Abdulrahman Abed , Davor Svetinovic

Decentralized finance introduces new business models and use cases as part of digital finance. Restaking has recently emerged as a transformative mechanism in DeFi, promising extra yields but introducing complex and interconnected risks.…

General Finance · Quantitative Finance 2026-04-17 Hasret Ozan Sevim , Christof Ferreira Torres

Decentralized applications are often composed of multiple interconnected smart contracts. This is especially evident in DeFi, where protocols are heavily intertwined and rely on a variety of basic building blocks such as tokens,…

Cryptography and Security · Computer Science 2025-05-27 Emily Priyadarshini , Massimo Bartoletti

This paper investigates the evolving landscape of decentralized finance (DeFi) by examining its foundational concepts, research trends, and ecosystem. A bibliometric analysis was conducted to identify thematic clusters and track the…

Computational Engineering, Finance, and Science · Computer Science 2024-12-03 Carlos J. Costa

Decentralized Finance (DeFi), in which digital assets are exchanged without trusted intermediaries, has grown rapidly in value in recent years. The global DeFi ecosystem is fragmented into multiple blockchains, fueling the demand for…

Cryptography and Security · Computer Science 2024-10-16 Daniël Reijsbergen , Bretislav Hajek , Tien Tuan Anh Dinh , Jussi Keppo , Henry F. Korth , Anwitaman Datta

We develop a mathematical framework to optimize leveraged staking ("loopy") strategies in Decentralized Finance (DeFi), in which a staked asset is supplied as collateral, the underlying is borrowed and re-staked, and the loop can be…

Mathematical Finance · Quantitative Finance 2026-01-21 Bastien Baude , Vincent Danos , Hamza El Khalloufi

Cryptocurrency can be understood as a digital asset transacted among participants in the crypto economy. Every cryptocurrency must have an associated Blockchain. Blockchain is a Distributed Ledger Technology (DLT) which supports…

Computers and Society · Computer Science 2024-05-20 Carlos Alberto Durigan Junior , Fernando Jose Barbin Laurindo