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We consider a method of lines (MOL) approach to determine prices of European and American exchange options when underlying asset prices are modelled with stochastic volatility and jump-diffusion dynamics. As the MOL, as with any other…

Computational Finance · Quantitative Finance 2021-06-15 Len Patrick Dominic M. Garces , Gerald H. L. Cheang

Unihedge is a decentralized platform for prediction markets with a novel approach. Using Harberger Tax (HTAX) economic policies a new type of prediction market, named HTAX prediction market, was build. HTAX prediction market derivates from…

Pricing of Securities · Quantitative Finance 2021-12-10 Marko Corn , Nejc Rožman

This paper studies the question whether automated market maker protocols such as Uniswap can sustainably retain a portion of their trading fees for the protocol. We approach the problem by modelling how to optimally choose a pool's take…

General Economics · Economics 2023-10-30 Robin Fritsch , Samuel Käser , Roger Wattenhofer

Automated market makers (AMMs) allocate fee revenue \textit{proportional} to the amount of liquidity investors deposit. In this paper, we study the economic consequences of the competition between passive liquidity providers (LPs) caused by…

Computer Science and Game Theory · Computer Science 2024-08-06 Julian Ma , Davide Crapis

This position paper argues that agentic AI systems should be designed and evaluated as \emph{marginal token allocation economies} rather than as text generators priced by the unit. We follow a single request -- a developer asking a coding…

Artificial Intelligence · Computer Science 2026-05-05 Siqi Zhu

This paper studies the optimal clearing problem for prosumers in peer-to-peer (P2P) energy markets. It is proved that if no trade weights are enforced and the communication structure between successfully traded peers is connected, then the…

Systems and Control · Electrical Eng. & Systems 2020-09-02 Dinh Hoa Nguyen

In a typical decentralized autonomous organization (DAO), people organize themselves into a group that is programmatically managed. DAOs can act as bidders in auctions, with a DAO's bid treated by the auctioneer as if it had been submitted…

Computer Science and Game Theory · Computer Science 2023-06-30 Maryam Bahrani , Pranav Garimidi , Tim Roughgarden

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

Recent advances in large language models (LLMs) have greatly improved their reasoning and decision-making abilities when deployed as agents. Richer reasoning, however, often comes at the cost of longer chain of thought (CoT), hampering…

Computation and Language · Computer Science 2025-11-20 Sirui Chen , Mengshi Zhao , Lei Xu , Yuying Zhao , Beier Zhu , Hanwang Zhang , Shengjie Zhao , Chaochao Lu

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

We model incentive security in non-custodial stablecoins and derive conditions for participation in a stablecoin system across risk absorbers (vaults/CDPs) and holders of governance tokens. We apply option pricing theory to derive closed…

General Economics · Economics 2023-03-31 Lucy Huo , Ariah Klages-Mundt , Andreea Minca , Frederik Christian Münter , Mads Rude Wind

In large-scale distributed environments, avoiding concurrent access to the same resource by multiple processes becomes a core challenge, commonly termed distributed mutual exclusion (DME). Token-based mechanisms have long been recognized as…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-02-10 Elahe Tohidi , Seyed Sattar Lotfi Fatemi

Coordination of distributed agents is required for problems arising in many areas, including multi-robot systems, networking and e-commerce. As a formal framework for such problems, we use the decentralized partially observable Markov…

Artificial Intelligence · Computer Science 2014-01-16 Daniel S. Bernstein , Christopher Amato , Eric A. Hansen , Shlomo Zilberstein

This paper studies Markov perfect equilibria in a repeated duopoly model where sellers choose algorithms. An algorithm is a mapping from the competitor's price to own price. Once set, algorithms respond quickly. Customers arrive randomly…

Theoretical Economics · Economics 2022-07-04 Rohit Lamba , Sergey Zhuk

This paper presents a decentralised autonomous organisation (DAO) model that uses non-fungible tokens (NFTs) for identity management and privacy-preserving interactions within a Punishment not Reward (PnR) blockchain mechanism. The proposed…

Cryptography and Security · Computer Science 2025-08-01 Talgar Bayan , Richard Banach

Real-time AI services increasingly operate across the device-edge-cloud continuum, where autonomous AI agents generate latency-sensitive workloads, orchestrate multi-stage processing pipelines, and compete for shared resources under policy…

Artificial Intelligence · Computer Science 2026-03-09 Lauri Lovén , Alaa Saleh , Reza Farahani , Ilir Murturi , Miguel Bordallo López , Praveen Kumar Donta , Schahram Dustdar

Proof-of-stake blockchain protocols have emerged as a compelling paradigm for organizing distributed ledger systems. In proof-of-stake (PoS), a subset of stakeholders participate in validating a growing ledger of transactions. For the…

Computer Science and Game Theory · Computer Science 2024-07-12 Aggelos Kiayias , Elias Koutsoupias , Francisco Marmolejo-Cossio , Aikaterini-Panagiota Stouka

We present the first in-depth empirical characterization of the costs of trading on a decentralized exchange (DEX). Using quoted prices from the Uniswap Labs interface for two pools -- USDC-ETH (5bps) and PEPE-ETH (30bps) -- we evaluate the…

Cryptography and Security · Computer Science 2024-04-18 Austin Adams , Benjamin Y Chan , Sarit Markovich , Xin Wan

Automated Market Makers (AMMs) are emerging as a popular decentralised trading platform. In this work, we determine the optimal dynamic fees in a constant function market maker. We find approximate closed-form solutions to the control…

Trading and Market Microstructure · Quantitative Finance 2025-06-26 Leonardo Baggiani , Martin Herdegen , Leandro Sánchez-Betancourt

We describe a plausible probabilistic model for a blockchain queueing environment in which rational, profit-maximising schedulers impose adversarial disciplines on incoming messages containing a payload that encodes a state transition in a…

Probability · Mathematics 2023-02-17 Andrew W. Macpherson