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Layer-2 (L2) blockchains inherit Ethereums security guarantees while reducing gas fees. As a result, they are gaining traction among traders at Automated Market Makers (AMMs), sparking debate over whether they contribute to liquidity…
The no-cloning property of quantum mechanics allows unforgeability of quantum banknotes and credit cards. Quantum credit card protocols involve a bank, a client and a payment terminal, and their practical implementation typically relies on…
This paper extends an option-theoretic approach to estimate liquidity spreads for corporate bonds. Inspired by Longstaff's equity market framework and subsequent work by Koziol and Sauerbier on risk-free zero-coupon bonds, the model views…
Time-bound stablecoins are DeFi assets that temporarily tokenize traditional securities during market off-hours, enabling continuous cross-market liquidity. We introduce the Liquidity-of-Time Premium (TLP): the extra return or cost of…
Kladia Liquidity Deflator (KLD) is an XRPL-based, debt-indexed token whose supply dynamics respond directly to a debt index derived from macroeconomic data sources. The model links indebtedness to deterministic adjustments in issuance,…
Permisionless decentralized ledgers ("blockchains") such as the one underlying the cryptocurrency Bitcoin allow anonymous participants to maintain the ledger, while avoiding control or "censorship" by any single entity. In contrast,…
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…
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…
Cryptocurrencies are examined through the asset flow equations and experimental asset markets. Since tangible value of a typical cryptocurrency is non-existent, the theory suggests that price will gravitate toward liquidity value, i.e., the…
Permissionless blockchains offer many advantages but also have significant limitations including high latency. This prevents their use in important scenarios such as retail payments, where merchants should approve payments fast. Prior works…
Electronic cash (e-cash) is a digital alternative to physical currency that allows anonymous transactions between users and merchants. Typically, coins in an e-cash scheme are only dispensed through a central bank. A drawback of this…
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…
In recent days, the proliferation of several existing and new cyber-attacks pose an axiomatic threat to the stability of financial services. It is hard to predict the nature of attacks that can trigger a serious financial crisis. The…
In this paper, I examine why some firms have zero leverage. I fail to find evidence that firms are unlevered because of managerial entrenchment since these firms do not have weaker corporate governance. I reject the hypothesis that firms…
In this paper, we construct a decentralized clearing mechanism which endogenously and automatically provides a claims resolution procedure. This mechanism can be used to clear a network of obligations through blockchain. In particular, we…
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…
We introduce a zero-knowledge cryptocurrency mixer framework that allows groups of users to set up a mixing pool with configurable governance conditions, configurable deposit delays, and the ability to refund or confiscate deposits if it is…
The advent of blockchain technology has led to a massive wave of different decentralized ledger technology (DLT) solutions. Such projects as Bitcoin and Ethereum have shifted the paradigm of how to transact value in a decentralized manner,…
This paper explores how zero-knowledge proofs can enhance Bitcoin's functionality and privacy. First, we consider Proof-of-Reserve schemes: by using zk-STARKs, a custodian can prove its Bitcoin holdings are more than a predefined threshold…
With the innovation of distributed ledger technology (DLT), often known as blockchain technology, there has been significant growth of digital tokens in the form of cryptocurrencies, stablecoins, and central bank digital currencies. As the…