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Related papers: SoK: Lending Pools in Decentralized Finance

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Flash Loan, as an emerging service in the decentralized finance ecosystem, allows users to request a non-collateral loan. While providing convenience, it also enables attackers to launch malicious operations with a large amount of asset…

Cryptography and Security · Computer Science 2021-04-22 Dabao Wang , Siwei Wu , Ziling Lin , Lei Wu , Xingliang Yuan , Yajin Zhou , Haoyu Wang , Kui Ren

As smart contract platforms autonomously manage billions of dollars of capital, quantifying the portfolio risk that investors engender in these systems is increasingly important. Recent work illustrates that Proof of Stake (PoS) is…

General Finance · Quantitative Finance 2020-06-22 Tarun Chitra , Alex Evans

Blockchain technology relies on decentralization to resist faults and attacks while operating without trusted intermediaries. Although industry experts have touted decentralization as central to their promise and disruptive potential, it is…

Cryptography and Security · Computer Science 2025-06-04 Harang Ju , Ehsan Valavi , Madhav Kumar , Sinan Aral

The sharing of data and digital assets in a decentralized settling is associated with various legislative challenges, including, but not limited to, the need to adhere to legal requirements with respect to privacy (e.g. data protection…

Cryptography and Security · Computer Science 2022-06-13 Ines Akaichi

Collateral is an item of value serving as security for the repayment of a loan. In blockchain-based loans, cryptocurrencies serve as the collateral. The high volatility of cryptocurrencies implies a serious barrier of entry with a common…

Computers and Society · Computer Science 2023-06-21 Tom Azoulay , Uri Carl , Ori Rottenstreich

Blockchain's decentralization, transparency, and tamper-resistance properties have facilitated the system's use in various application fields. However, the low throughput and high confirmation latency hinder the widespread adoption of…

Cryptography and Security · Computer Science 2024-09-12 Md Mohaimin Al Barat , Shaoyu Li , Changlai Du , Y. Thomas Hou , Wenjing Lou

Lending protocols in decentralized finance enable the permissionless exchange of capital from lenders to borrowers without relying on a trusted third party for clearing or market-making. Interest rates are set by the supply and demand of…

General Finance · Quantitative Finance 2023-08-17 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer

Game theory is often used as a tool to analyze decentralized systems and their properties, in particular, blockchains. In this note, we take the opposite view. We argue that blockchains can and should be used to implement economic…

Computer Science and Game Theory · Computer Science 2020-10-02 Akaki Mamageishvili , Jan Christoph Schlegel

Bitcoin uses blockchain technology and proof-of-work (PoW) mechanism where nodes spend computing resources and earn rewards in return for spending these resources. This incentive system has caused power to be significantly biased towards a…

Cryptography and Security · Computer Science 2019-09-04 Yujin Kwon , Jian Liu , Minjeong Kim , Dawn Song , Yongdae Kim

Decentralization initiatives like Solid enable data owners to control who has access to their data and to stimulate innovation by creating both application and data markets. Once data owners share their data with others, though, it is no…

Multiagent Systems · Computer Science 2023-10-10 Davide Basile , Claudio Di Ciccio , Valerio Goretti , Sabrina Kirrane

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

Blockchain technologies have overturned the digital finance industry by introducing a decentralized pseudonymous means of monetary transfer. The pseudonymous nature introduced privacy concerns, enabling various deanonymization techniques,…

Cryptography and Security · Computer Science 2025-04-30 Juraj Mariani , Ivan Homoliak

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

Cryptocurrency is a novel exploration of a form of currency that proposes a decentralized electronic payment scheme based on blockchain technology and cryptographic theory. While cryptocurrency has the security characteristics of being…

Cryptography and Security · Computer Science 2025-03-31 Zekai Liu , Xiaoqi Li

As we observe a trend towards the recentralisation of the Internet, this paper raises the question of guaranteeing an everlasting decentralisation. We introduce the properties of strong and soft uncentralisability in order to describe…

Cryptography and Security · Computer Science 2018-01-25 Lionel Dricot , Olivier Pereira

Financial markets are undergoing an unprecedented transformation. Technological advances have brought major improvements to the operations of financial services. While these advances promote improved accessibility and convenience,…

Trading and Market Microstructure · Quantitative Finance 2023-12-05 Agostino Capponi , Garud Iyengar , Jay Sethuraman

Decentralized finance (DeFi) borrowing and lending platforms are crucial to the decentralized economy, involving two main participants: lenders who provide assets for interest and borrowers who offer collateral exceeding their debt and pay…

Computational Engineering, Finance, and Science · Computer Science 2024-07-16 Mahsa Bastankhah , Viraj Nadkarni , Xuechao Wang , Chi Jin , Sanjeev Kulkarni , Pramod Viswanath

Cryptocurrencies are poised to revolutionize the modern economy by democratizing commerce. These currencies operate on top of blockchain-based distributed ledgers. Existing permissionless blockchain-based protocols offer unparalleled…

Cryptography and Security · Computer Science 2022-03-25 Anurag Jain , Sanidhay Arora , Sankarshan Damle , Sujit Gujar

Blockchain or Distributed Ledger Technology is a disruptive technology that provides the infrastructure for developing decentralized applications enabling the implementation of novel business models even in traditionally centralized…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-03-22 Claudia Pop , Tudor Cioara , Ionut Anghel , Marcel Antal , Ioan Salomie

Blockchain technology has been envisaged to commence an era of decentralised applications and services (DApps) without the need for a trusted intermediary. Such DApps open a marketplace in which services are delivered to end-users by…

Cryptography and Security · Computer Science 2021-01-27 Nguyen Truong , Gyu Myoung Lee , Kai Sun , Florian Guitton , Yike Guo