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This paper investigates how pricing schemes can achieve efficient allocations in blockchain systems featuring multiple transaction queues under a global capacity constraint. I model a capacity-constrained blockchain where users submit…

General Economics · Economics 2025-02-26 Abdoulaye Ndiaye

Market fragmentation across multiple Automated Market Makers (AMMs) creates inefficiencies such as costly arbitrage, unnecessarily high slippage and delayed incorporation of new information into prices. These inefficiencies raise trading…

General Economics · Economics 2025-10-01 Marcelo Bagnulo , Angel Hernando-Veciana , Efthymios Smyrniotis

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

The Proof of Efficient Liquidity (PoEL) protocol, designed for specialised Proof of Stake (PoS) consensus-based blockchains that incorporate intrinsic DeFi applications, aims to support sustainable liquidity bootstrapping and network…

General Finance · Quantitative Finance 2024-02-19 Arman Abgaryan , Utkarsh Sharma , Joshua Tobkin

This paper studies optimal pricing and rebalancing policies for Autonomous Mobility-on-Demand (AMoD) systems. We take a macroscopic planning perspective to tackle a profit maximization problem while ensuring that the system is…

Optimization and Control · Mathematics 2020-03-31 Salomón Wollenstein-Betech , Ioannis Ch. Paschalidis , Christos G. Cassandras

We establish a Stackelberg attack by Liquidity Providers against Governance of an AMM, leveraging forking and commitments through a Grim Forker smart contract. We produce a dynamic, block-by-block model of AMM reserves and trading volume in…

Computer Science and Game Theory · Computer Science 2024-12-17 Alexandre Hajjar

Blockchains have popularized automated market makers (AMMs). An AMM exchange is an application running on a blockchain which maintains a pool of crypto-assets and automatically trades assets with users governed by some pricing function that…

Computer Science and Game Theory · Computer Science 2025-09-16 T-H. Hubert Chan , Ke Wu , Elaine Shi

The Ethereum blockchain utilizes the EIP-1559 algorithm to manage transaction inclusion and block assembly. However, EIP-1559 and much of the existing literature study this problem from a static perspective, focusing on price evolution…

Computer Science and Game Theory · Computer Science 2026-05-14 Fatemeh Fardno , S. Rasoul Etesami

We design a coordination mechanism for truck drivers that uses pricing-and-routing schemes that can help alleviate traffic congestion in a general transportation network. We consider the user heterogeneity in Value-Of-Time (VOT) by adopting…

Optimization and Control · Mathematics 2021-03-01 Aristotelis-Angelos Papadopoulos , Ioannis Kordonis , Maged M. Dessouky , Petros A. Ioannou

An effective distribution electricity market (DEM) is required to manage the rapidly growing small-scale distributed energy resources (DERs) in distribution systems (DSs). This paper proposes a day-ahead DEM clearing and pricing mechanism…

Systems and Control · Electrical Eng. & Systems 2021-10-15 Zongzheng Zhao , Yixin Liu , Li Guo , Linquan Bai , Chengshan Wang

Centralized monetary policy, leading to persistent inflation, is often inconsistent, untrustworthy, and unpredictable. Algorithmic stablecoins enabled by blockchain technology are promising in solving this problem. Algorithmic stablecoins…

General Economics · Economics 2022-01-17 Luyao Zhang , Yulin Liu

Automated Market Makers (AMMs) are an integral component of the decentralized finance (DeFi) ecosystem, as they allow users to exchange crypto-assets without the need for trusted authorities or external price oracles. Although these…

Logic in Computer Science · Computer Science 2024-02-13 Daniele Pusceddu , Massimo Bartoletti

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

Voting is the primary mechanism through which Decentralised Autonomous Organisations (DAO) reach decisions. Although transparent, the voting process can be complex: it can involve many interacting smart contracts. The nexus of the…

Cryptography and Security · Computer Science 2026-03-03 Thomas Lloyd , Daire Ó Broin , Martin Harrigan

Concentrated Liquidity Market Makers (CLMMs) represent a fundamental innovation in market microstructure, transforming liquidity provision from passive portfolio allocation to active risk management. This evolution creates significant…

Mathematical Finance · Quantitative Finance 2026-03-31 Andrey Urusov , Rostislav Berezovskiy , Anatoly Krestenko , Andrei Kornilov , Yury Yanovich

Blockchains have popularized the Automated Market Makers (AMMs), where users trade crypto-assets directly with a smart contract, governed by a pricing function embedded in the contract's code. Today, users of AMMs are often forced to accept…

Computer Science and Game Theory · Computer Science 2026-05-28 Yuhao Li , Elaine Shi , Mengqian Zhang

Stablecoins have turned out to be the "killer" use case of the growing digital asset space. However, risk management frameworks, including regulatory ones, have been largely absent. In this paper, we address the critical question of…

Risk Management · Quantitative Finance 2024-01-25 Marcel Bluhm , Adrian Cachinero Vasiljević , Sébastien Derivaux , Søren Terp Hørlück Jessen

Decentralized Autonomous Organizations (DAOs) have emerged as a novel governance mechanism in blockchain ecosystems, particularly within Decentralized Finance (DeFi). By enabling token holders to propose and vote on protocol changes, these…

Cryptography and Security · Computer Science 2025-07-22 Johnnatan Messias , Vabuk Pahari , Balakrishnan Chandrasekaran , Krishna P. Gummadi , Patrick Loiseau

Blockchain systems come with the promise of being inclusive for a variety of decentralized applications (DApps) that can serve different purposes and have different urgency requirements. Despite this, the transaction fee mechanisms…

Computer Science and Game Theory · Computer Science 2023-04-13 Aggelos Kiayias , Elias Koutsoupias , Philip Lazos , Giorgos Panagiotakos

In peer-to-peer (P2P) energy trading, a secured infrastructure is required to manage trade and record monetary transactions. A central server/authority can be used for this. But there is a risk of central authority influencing the energy…

Computer Science and Game Theory · Computer Science 2022-09-19 Nitin Singha , V Shreyas , Sandeep Kumar