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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

This paper develops a rigorous mathematical framework for analyzing Concentrated Liquidity Market Makers (CLMMs) in Decentralized Finance (DeFi) within a continuous-time setting. We model the evolution of liquidity profiles as…

Mathematical Finance · Quantitative Finance 2024-12-25 Shen-Ning Tung , Tai-Ho Wang

This empirical study presents the Decentralized Exchanges Comparison Service (DECS), a novel tool developed by 1inch Analytics to assess exchange efficiency in decentralized finance. The DECS utilizes swap transaction monitoring and…

Trading and Market Microstructure · Quantitative Finance 2024-11-05 Evgenii Onishchuk , Maksim Dubovitskii , Eduard Horch

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

We coin the term *Protocols for Loanable Funds (PLFs)* to refer to protocols which establish distributed ledger-based markets for loanable funds. PLFs are emerging as one of the main applications within Decentralized Finance (DeFi), and use…

General Finance · Quantitative Finance 2020-10-16 Lewis Gudgeon , Sam M. Werner , Daniel Perez , William J. Knottenbelt

Decentralized Exchanges (DEXs) are one of the most important infrastructures in the world of Decentralized Finance (DeFi) and are generally considered more reliable than centralized exchanges (CEXs). However, some well-known decentralized…

Cryptography and Security · Computer Science 2023-09-26 Rundong Gan , Le Wang , Xiaodong Lin

To non-experts, the traditional Centralized Finance (CeFi) ecosystem may seem obscure, because users are typically not aware of the underlying rules or agreements of financial assets and products. Decentralized Finance (DeFi), however, is…

General Finance · Quantitative Finance 2021-06-17 Kaihua Qin , Liyi Zhou , Yaroslav Afonin , Ludovico Lazzaretti , Arthur Gervais

In a decentralized environment, exchanging resources requires users to bargain until an agreement is found. Moreover, human agreements involve a combination of collaborative and selfish behavior and often induce circularity, complicating…

Cryptography and Security · Computer Science 2022-07-26 Lorenzo Ceragioli , Letterio Galletta , Pierpaolo Degano , Luca Viganò

Decentralized Finance (DeFi) has reshaped the possibilities of reserve banking in the form of the Collateralized Debt Position (CDP). Key to the safety of CDPs is the money supply architecture that enables issued debt to maintain its value.…

Risk Management · Quantitative Finance 2024-07-19 Yuval Boneh

The Decentralized Physical Infrastructure (DePIN) market is revolutionizing the sharing economy through token-based economics and smart contracts that govern decentralized operations. By 2024, DePIN projects have exceeded \$10 billion in…

General Economics · Economics 2025-09-01 Yulin Liu , Mocca Schweitzer

With the rapid growth of Electric Vehicle (EV) technology, EVs are destined to shape the future of transportation. The large number of EVs facilitates the development of the emerging vehicle-to-grid (V2G) technology, which realizes…

Cryptography and Security · Computer Science 2025-08-27 Ahmed Mounsf Rafik Bendada , Yacine Ghamri-Doudane

We develop a mixed control framework that combines absolutely continuous controls with impulse interventions subject to stochastic execution delays. The model extends current impulse control formulations by allowing (i) the controller to…

Trading and Market Microstructure · Quantitative Finance 2026-02-20 Philippe Bergault , Yadh Hafsi , Leandro Sánchez-Betancourt

Supply chain formation is the process of determining the structure and terms of exchange relationships to enable a multilevel, multiagent production activity. We present a simple model of supply chains, highlighting two characteristic…

Artificial Intelligence · Computer Science 2011-07-04 W. E. Walsh , M. P. Wellman

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

The rapid growth of decentralized finance (DeFi) has led to the widespread use of automated agents, or bots, within blockchain ecosystems like Ethereum, Binance Smart Chain, and Solana. While these bots enhance market efficiency and…

Cryptography and Security · Computer Science 2025-01-22 Ahmed Mounsf Rafik Bendada , Abdelaziz Amara Korba , Mouhamed Amine Bouchiha , Yacine Ghamri-Doudane

Decentralized exchanges, such as those employing constant product market makers (CPMMs) like Uniswap V2, play a crucial role in the blockchain ecosystem by enabling peer-to-peer token swaps without intermediaries. Despite the increasing…

Computational Finance · Quantitative Finance 2025-04-23 Yu Zhang , Yafei Li , Claudio Tessone

Decentralized Finance (DeFi) enables many novel applications that were impossible in traditional finances. However, it also introduces new types of vulnerabilities. An example of such vulnerabilities is a composability bug between token…

Cryptography and Security · Computer Science 2025-04-11 Sujin Han , Jinseo Kim , Sung-Ju Lee , Insu Yun

Given the rapid rise of electric vehicles (EVs) worldwide, and the ambitious targets set for the near future, the management of large EV fleets must be seen as a priority. Specifically, we study a scenario where EV charging is managed…

Multiagent Systems · Computer Science 2020-01-31 Alvaro Perez-Diaz , Enrico Gerding , Frank McGroarty

Decentralized Finance (DeFi) is increasingly studied and adopted for its potential to provide accessible and transparent financial services. Analyzing how investors use DeFi is important for reaching a better understanding of their usage…

Social and Information Networks · Computer Science 2024-08-23 Natkamon Tovanich , Célestin Coquidé , Rémy Cazabet

Decentralized Ledger Technology, popularized by the Bitcoin network, aims to keep track of a ledger of valid transactions between agents of a virtual economy without a central institution for coordination. In order to keep track of a…

Systems and Control · Computer Science 2018-07-04 Michael Zargham , Zixuan Zhang , Victor Preciado