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Related papers: BLOCKEYE: Hunting For DeFi Attacks on Blockchain

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Complex DeFi services are usually constructed by composing a variety of simpler smart contracts. The permissionless nature of the blockchains where these smart contracts are executed makes DeFi services exposed to security risks, since…

Cryptography and Security · Computer Science 2024-01-09 Massimo Bartoletti , Riccardo Marchesin , Roberto Zunino

Reentrancy, a notorious vulnerability in smart contracts, has led to millions of dollars in financial loss. However, current smart contract vulnerability detection tools suffer from a high false positive rate in identifying contracts with…

Cryptography and Security · Computer Science 2024-03-29 Shuo Yang , Jiachi Chen , Mingyuan Huang , Zibin Zheng , Yuan Huang

Credit exposure in Decentralized Finance (DeFi) is often implicit and token-mediated, creating a dense web of inter-protocol dependencies. Thus, a shock to one token may result in significant and uncontrolled contagion effects. As the DeFi…

Machine Learning · Computer Science 2026-02-05 Aijie Shu , Wenbin Wu , Gbenga Ibikunle , Fengxiang He

Decentralized finance (DeFi) lacks centralized oversight, often resulting in heightened volatility. In contrast, centralized finance (CeFi) offers a more stable environment with institutional safeguards. Institutional backing can play a…

Computational Finance · Quantitative Finance 2025-12-23 Ihlas Sovbetov

Decentralized finance (DeFi) has been the target of numerous profit-driven crimes, but the prevalence and cumulative impact of these crimes have not yet been assessed. This study provides a comprehensive assessment of profit-driven crimes…

Cryptography and Security · Computer Science 2025-01-23 Catherine Carpentier-Desjardins , Masarah Paquet-Clouston , Stefan Kitzler , Bernhard Haslhofer

In recent years, smart contracts have suffered major exploits, costing millions of dollars. Unlike traditional programs, smart contracts are deployed on a blockchain. As such, they cannot be modified once deployed. Though various tools have…

Cryptography and Security · Computer Science 2020-03-16 Christof Ferreira Torres , Mathis Baden , Robert Norvill , Beltran Borja Fiz Pontiveros , Hugo Jonker , Sjouke Mauw

The number of attacks and accidents leading to significant losses of crypto-assets is growing. According to Chainalysis, in 2021, approx. $14 billion has been lost due to various incidents, and this number is dominated by Decentralized…

Logic in Computer Science · Computer Science 2022-03-16 Eske Hoy Nielsen , Danil Annenkov , Bas Spitters

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…

We explore the adoption of graph representation learning (GRL) algorithms to investigate similarities across services offered by Decentralized Finance (DeFi) protocols. Following existing literature, we use Ethereum transaction data to…

Statistical Finance · Quantitative Finance 2024-04-25 Junliang Luo , Stefan Kitzler , Pietro Saggese

In blockchains such as Bitcoin and Ethereum, transactions represent the primary mechanism that the external world can use to trigger a change of blockchain state. Transactions serve as key sources of evidence and play a vital role in…

Cryptography and Security · Computer Science 2024-05-15 Chao Li , Balaji Palanisamy

With the rapid growth of blockchain, an increasing number of users have been attracted and many implementations have been refreshed in different fields. Especially in the cryptocurrency investment field, blockchain technology has shown…

Cryptography and Security · Computer Science 2021-04-20 Shanqing Yu , Jie Jin , Yunyi Xie , Jie Shen , Qi Xuan

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

With the increase of the adoption of blockchain technology in providing decentralized solutions to various problems, smart contracts have become more popular to the point that billions of US Dollars are currently exchanged every day through…

Cryptography and Security · Computer Science 2023-01-24 Feng Mi , Chen Zhao , Zhuoyi Wang , Sadaf MD Halim , Xiaodi Li , Zhouxiang Wu , Latifur Khan , Bhavani Thuraisingham

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

Artificial Intelligence (AI) has the potential to significantly benefit or harm humanity. At present, a few for-profit companies largely control the development and use of this technology, and therefore determine its outcomes. In an effort…

Computers and Society · Computer Science 2022-11-14 Casey Clifton , Richard Blythman , Kartika Tulusan

Decentralized applications (dApps) in Decentralized Finance (DeFi) face a fundamental tension between regulatory compliance requirements like Know Your Customer (KYC) and maintaining decentralization and privacy. Existing permissioned DeFi…

Cryptography and Security · Computer Science 2025-10-08 Fabian Piper , Karl Wolf , Jonathan Heiss

Front-running attacks have been a major concern on the blockchain. Attackers launch front-running attacks by inserting additional transactions before upcoming victim transactions to manipulate victim transaction executions and make profits.…

Software Engineering · Computer Science 2023-05-04 Wuqi Zhang , Lili Wei , Shing-Chi Cheung , Yepang Liu , Shuqing Li , Lu Liu , Michael R. Lyu

With the ever-increasing popularity of blockchain applications, securing blockchain networks plays a critical role in these cyber systems. In this paper, we first study cyberattacks (e.g., flooding of transactions, brute pass) in blockchain…

Cryptography and Security · Computer Science 2024-07-08 Tran Viet Khoa , Do Hai Son , Dinh Thai Hoang , Nguyen Linh Trung , Tran Thi Thuy Quynh , Diep N. Nguyen , Nguyen Viet Ha , Eryk Dutkiewicz

Decentralized financial (DeFi) applications on the Ethereum blockchain are highly interoperable because they share a single state in a deterministic computational environment. Stakeholders can deposit claims on assets, referred to as…

Computers and Society · Computer Science 2021-11-30 Victor von Wachter , Johannes Rude Jensen , Omri Ross

Blockchain introduces decentralized trust in peer-to-peer networks, advancing security and democratizing systems. Yet, a unified definition for decentralization remains elusive. Our Systematization of Knowledge (SoK) seeks to bridge this…

General Economics · Economics 2023-08-21 Luyao Zhang , Xinshi Ma , Yulin Liu