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Automated market makers are a popular mechanism used on decentralized exchange, through which users trade assets with each other directly and automatically through a liquidity pool and a fixed pricing function. The liquidity provider…

Mathematical Finance · Quantitative Finance 2024-11-27 Xue Dong He , Chen Yang , Yutian Zhou

Time series forecasting is a key tool in financial markets, helping to predict asset prices and guide investment decisions. In highly volatile markets, such as cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), forecasting becomes more…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Mabsur Fatin Bin Hossain , Lubna Zahan Lamia , Md Mahmudur Rahman , Md Mosaddek Khan

We consider Geometric Mean Market Makers -- a special type of Decentralized Exchange -- with two types of users: liquidity takers and arbitrageurs. Liquidity takers trade at prices that can create arbitrage opportunities, while arbitrageurs…

Mathematical Finance · Quantitative Finance 2023-03-21 Masaaki Fukasawa , Basile Maire , Marcus Wunsch

A peer-to-peer network, enabling different parties to jointly store and run computations on data while keeping the data completely private. Enigma's computational model is based on a highly optimized version of secure multi-party…

Cryptography and Security · Computer Science 2015-06-12 Guy Zyskind , Oz Nathan , Alex Pentland

The accurate prediction of short-term electricity prices is vital for effective trading strategies, power plant scheduling, profit maximisation and efficient system operation. However, uncertainties in supply and demand make such…

Econometrics · Economics 2023-04-20 Mira Watermeyer , Thomas Möbius , Oliver Grothe , Felix Müsgens

The emerging edge computing paradigm promises to provide low latency and ubiquitous computation to numerous mobile and Internet of Things (IoT) devices at the network edge. How to efficiently allocate geographically distributed…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-02-16 Tarannum Nisha , Duong Tung Nguyen , Vijay K. Bhargava

We investigate the behavior of liquidity providers (LPs) by modeling a decentralized cryptocurrency exchange (DEX) based on Uniswap v3. LPs with heterogeneous characteristics choose optimal liquidity positions subject to uncertainty…

Trading and Market Microstructure · Quantitative Finance 2024-04-16 Erhan Bayraktar , Asaf Cohen , April Nellis

Derivative hedging and pricing are important and continuously studied topics in financial markets. Recently, deep hedging has been proposed as a promising approach that uses deep learning to approximate the optimal hedging strategy and can…

Computational Finance · Quantitative Finance 2024-04-16 Masanori Hirano

Many organizations measure treatment effects via an experimentation platform to evaluate the casual effect of product variations prior to full-scale deployment. However, standard experimentation platforms do not perform optimally for end…

We present FairTraDEX, a decentralized exchange (DEX) protocol based on frequent batch auctions (FBAs), which provides formal game-theoretic guarantees against extractable value. FBAs when run by a trusted third-party provide unique…

Computer Science and Game Theory · Computer Science 2022-08-05 Conor McMenamin , Vanesa Daza , Matthias Fitzi , Padraic O'Donoghue

We develop a model of coordination and allocation of decentralized multi-sided markets, in which our theoretical analysis is promisingly optimizing the decentralized transaction packaging process at high-throughput blockchains or Web 3.0…

General Economics · Economics 2023-01-27 Yuxuan Lu , Qian Qi , Xi Chen

Constant-product market making functions were first introduced by Hayden Adams in 2017 to create Uniswap, a decentralised exchange on Ethereum. This enables users to exchange assets at any given rate. Some variations such as Balancer and…

Computer Science and Game Theory · Computer Science 2023-01-23 Théodore Conrad , Arthur Vinciguerra , Guillaume Méroué

Recently, several new pari-mutuel mechanisms have been introduced to organize markets for contingent claims. Hanson introduced a market maker derived from the logarithmic scoring rule, and later Chen and Pennock developed a cost function…

Trading and Market Microstructure · Quantitative Finance 2009-02-17 Shipra Agrawal , Erick Delage , Mark Peters , Zizhuo Wang , Yinyu Ye

We analyze the market quality of centralized crypto exchanges (CEXs) and decentralized blockchain-based venues (DEXs) using a unique and comprehensive dataset. Focusing on two fundamental aspects, transaction costs and deviations from the…

Trading and Market Microstructure · Quantitative Finance 2024-09-16 Andrea Barbon , Angelo Ranaldo

The Financial system has witnessed rapid technological changes. The rise of Bitcoin and other crypto assets based on Distributed Ledger Technology mark a fundamental change in the way people transact and transmit value over a decentralized…

General Finance · Quantitative Finance 2024-10-02 Arindam Misra

We develop an online data-enabled predictive (ODeePC) control method for optimal control of unknown systems, building on the recently proposed DeePC [1]. Our proposed ODeePC method leverages a primal-dual algorithm with real-time…

Optimization and Control · Mathematics 2020-11-20 Stefanos Baros , Chin-Yao Chang , Gabriel E. Colon-Reyes , Andrey Bernstein

Recently, a new generation of P2P systems capable of addressing data integrity and authenticity has emerged for the development of new applications for a "more" decentralized Internet, i.e., Distributed Ledger Technologies (DLT) and…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-09-13 Mirko Zichichi , Luca Serena , Stefano Ferretti , Gabriele D'Angelo

In complete markets, there are risky assets and a riskless asset. It is assumed that the riskless asset and the risky asset are traded continuously in time and that the market is frictionless. In this paper, we propose a new method for…

Pricing of Securities · Quantitative Finance 2019-10-02 Abootaleb Shirvani , Stoyan V. Stoyanov , Svetlozar T. Rachev , Frank J. Fabozzi

The darknet markets are notorious black markets in cyberspace, which involve selling or brokering drugs, weapons, stolen credit cards, and other illicit goods. To combat illicit transactions in the cyberspace, it is important to analyze the…

Machine Learning · Computer Science 2019-11-13 Panpan Zheng , Shuhan Yuan , Xintao Wu , Yubao Wu

Despite the abundance of Electronic Healthcare Records (EHR), its heterogeneity restricts the utilization of medical data in building predictive models. To address this challenge, we propose Universal Healthcare Predictive Framework…

Machine Learning · Computer Science 2024-09-04 Kyunghoon Hur , Jungwoo Oh , Junu Kim , Jiyoun Kim , Min Jae Lee , Eunbyeol Cho , Seong-Eun Moon , Young-Hak Kim , Edward Choi