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The transaction ordering dependency of the smart contracts building decentralized exchanges (DEXes) allow for predatory trading strategies. In particular, front-running attacks present a constant risk for traders on DEXes. Whereas legal…

Computer Science and Game Theory · Computer Science 2024-09-09 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer

In this paper, we present a pricing mechanism that aligns incentives of agents who exchange resources on a decentralized ledger with the goal of maximizing transaction throughput. Subdividing a blockchain ledger into shards promises to…

Systems and Control · Electrical Eng. & Systems 2020-09-02 James R. Riehl , Jonathan Ward

Blockchain technology is among the fastest-growing technologies in the world today. It has been adopted in diverse areas but mostly in financial systems, such as Bitcoin cryptocurrency. Therefore, it is a niche that has attracted interest…

Cryptography and Security · Computer Science 2021-06-30 Mabrook S. Al-Rakhami , Abdu Gumaei , Sk. Md. Mizanur Rahman , Atif Al-Amri

Blockchain-based Distributed Ledgers (DLs) promise to transform the existing financial system by making it truly democratic. In the past decade, blockchain technology has seen many novel applications ranging from the banking industry to…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-02-22 Anurag Jain , Shoeb Siddiqui , Sujit Gujar

Permissioned blockchains are becoming popular as data management systems in the enterprise setting. Compared to traditional distributed databases, blockchain platforms provide increased security guarantees but significantly lower…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-03-02 Parth Thakkar , Senthilnathan Natarajan

Blockchains implement decentralized monetary systems and applications. Recent advancements enable what we call tethering a blockchain to a primary blockchain, securing the tethered chain by nodes that post primary-chain tokens as…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-04-25 Yogev Bar-On , Roi Bar-Zur , Omer Ben-Porat , Nimrod Cohen , Ittay Eyal , Matan Sitbon

Decentralized exchanges are revolutionizing finance. With their ever-growing increase in popularity, a natural question that begs to be asked is: how efficient are these new markets? We find that nearly 30% of analyzed trades are executed…

Computational Engineering, Finance, and Science · Computer Science 2022-05-23 Jan Arvid Berg , Robin Fritsch , Lioba Heimbach , Roger Wattenhofer

Blockchain technology has revolutionized financial markets by enabling decentralized exchanges (DEXs) that operate without intermediaries. Uniswap V2, a leading DEX, facilitates the rapid creation and trading of new tokens, which offer high…

Computational Finance · Quantitative Finance 2026-02-18 Manuel Naviglio , Francesco Tarantelli , Fabrizio Lillo

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

This thesis proposes techniques aiming to make blockchain technologies and smart contract platforms practical by improving their scalability, latency, and privacy. This thesis starts by presenting the design and implementation of…

Cryptography and Security · Computer Science 2021-02-25 Alberto Sonnino

We study the economic viability of liquidity provision in decentralised exchanges (DEXs) within a structural framework in which market outcomes are endogenous. We formulate strategic interactions as a sequential game: a risk-averse…

Trading and Market Microstructure · Quantitative Finance 2026-03-05 Fayçal Drissi , Xuchen Wu , Sebastian Jaimungal

Decentralized Finance (DeFi) is a rapidly evolving segment of blockchain technology that enables a transformative approach to financial services through Web3 applications. By leveraging smart contracts, DeFi allows developers to build…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-05-01 Ignat Melnikov , Roman Vlasov , Vladimir Gorgadze , Andrey Seoev , Yury Yanovich

We investigate the welfare loss of continuous and discrete order matching models in blockchain-based decentralized exchanges (DEX) that utilize order books to record outstanding orders. Continuous processing matches each incoming…

Cryptography and Security · Computer Science 2025-02-18 Tiantian Gong , Zeyu Liu , Aniket Kate

The limit order book mechanism has been the core trading mechanism of the modern financial market. In the cryptocurrency market, centralized exchanges also adopt this limit order book mechanism and a centralized matching engine dynamically…

Computational Engineering, Finance, and Science · Computer Science 2022-12-21 Yeonwoo Jeong , Chanyoung Jeoung , Hosan Jeong , SangYoon Han , Juntae Kim

While online interactions and exchanges have grown exponentially over the past decade, most commercial infrastructures still operate through centralized protocols, and their success essentially depends on trust between different economic…

Computer Science and Game Theory · Computer Science 2022-11-08 Marwan Zeggari , Renaud Lambiotte , Aydin Abadi , Louise Axon , Mohamad Kassab

Transactive microgrids have emerged as a transformative solution for the problems faced by distribution system operators due to an increase in the use of distributed energy resources and rapid growth in renewable energy generation.…

Cryptography and Security · Computer Science 2019-10-29 Scott Eisele , Taha Eghtesad , Keegan Campanelli , Prakhar Agrawal , Aron Laszka , Abhishek Dubey

Blockchain protocols are inherently limited in transaction throughput and latency. Recent efforts to address performance and scale blockchains have focused on off-chain payment channels. While such channels can achieve low latency and high…

Cryptography and Security · Computer Science 2017-03-09 Joshua Lind , Ittay Eyal , Peter Pietzuch , Emin Gün Sirer

Sharding is a prominent technique for scaling blockchains. By dividing the network into smaller components known as shards, a sharded blockchain can process transactions in parallel without introducing inconsistencies through the…

Cryptography and Security · Computer Science 2023-09-12 Jianting Zhang , Wuhui Chen , Sifu Luo , Tiantian Gong , Zicong Hong , Aniket Kate

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

We propose a mathematically rigorous framework for identifying and completing Coincidence of Wants (CoW) cycles in decentralized exchange (DEX) aggregators. Unlike existing auction based systems such as CoWSwap, our approach introduces an…

Computer Science and Game Theory · Computer Science 2025-07-15 Abhimanyu Nag , Madhur Prabhakar , Tanuj Behl
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