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Related papers: Managing Risk in DeFi Portfolios

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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 $80 billion. Current tools detect and locate possible…

Cryptography and Security · Computer Science 2025-11-04 Xiaoqi Li , Wenkai Li , Zhiquan Liu , Yuqing Zhang , Yingjie Mao

The trustless nature of permissionless blockchains renders overcollateralization a key safety component relied upon by decentralized finance (DeFi) protocols. Nonetheless, factors such as price volatility may undermine this mechanism. In…

General Finance · Quantitative Finance 2021-12-14 Daniel Perez , Sam M. Werner , Jiahua Xu , Benjamin Livshits

As an innovative technology for enhancing authenticity, security, and risk management, blockchain is being widely adopted in trade and finance systems. The unique capabilities of blockchain, such as immutability and transparency, enable new…

Cryptography and Security · Computer Science 2024-02-28 Hanjie Wu , Qian Yao , Zhenguang Liu , Butian Huang , Yuan Zhuang , Huayun Tang , Erwu Liu

Ride-hailing and ride-sharing applications have recently gained in popularity as a convenient alternative to traditional modes of travel. Current research into autonomous vehicles is accelerating rapidly and will soon become a critical…

Cryptography and Security · Computer Science 2019-10-08 Ryan Shivers , Mohammad Ashiqur Rahman , Hossain Shahriar

Blockchain-based systems are frequently governed through tokens that grant their holders voting rights over core protocol functions and funds. The centralisation occurring in Decentralised Finance (DeFi) protocols' token-based voting…

Computational Engineering, Finance, and Science · Computer Science 2025-02-04 Thomas Eisermann , Carlo Campajola , Claudio J. Tessone , Andreia Sofia Teixeira

Options are fundamental to blockchain-based financial services, offering essential tools for risk management and price speculation, which enhance liquidity, flexibility, and market efficiency in decentralized finance (DeFi). Despite the…

Cryptography and Security · Computer Science 2025-05-27 Zifan Peng , Yingjie Xue , Jingyu Liu

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

There has been an intense concern for security alternatives because of the recent rise of cyber attacks, mainly targeting critical systems such as industry, medical, or energy ecosystem. Though the latest industry infrastructures largely…

Cryptography and Security · Computer Science 2021-06-28 Ziaur Rahman , Ibrahim Khalil , Xun Yi , Mohammed Atiquzzaman

In this review, we evaluate the mechanisms behind the decentralized finance protocols for generating stable, passive income. Currently, such savings interest rates can be as high as 20% annually, payable in traditional currency values such…

Computers and Society · Computer Science 2021-08-16 Hakwan Lau , Stephen Tse

Blockchain-based decentralised lending is a rapidly growing and evolving alternative to traditional lending, but it poses new risks. To mitigate these risks, lending protocols have integrated automated risk management tools into their smart…

Risk Management · Quantitative Finance 2025-10-02 Erum Iftikhar , Wei Wei , John Cartlidge

The widespread use of the Internet has posed challenges to existing centralized physical infrastructure networks. Issues such as data privacy risks, service disruptions, and substantial expansion costs have emerged. To address these…

Networking and Internet Architecture · Computer Science 2024-06-05 Zhibin Lin , Taotao Wang , Long Shi , Shengli Zhang , Bin Cao

Federated learning (FL) enables collaborative training of machine learning models without sharing training data. Traditional FL heavily relies on a trusted centralized server. Although decentralized FL eliminates the central dependence, it…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-01-25 Zhen Qin , Xueqiang Yan , Mengchu Zhou , Shuiguang Deng

Decentralized financial (DeFi) applications on the Ethereum blockchain are highly interoperable because they share a single state in a deterministic computational environment. Stakeholders can deposit claims on assets, referred to as…

Computers and Society · Computer Science 2021-11-30 Victor von Wachter , Johannes Rude Jensen , Omri Ross

Blockchain technology relies on decentralization to resist faults and attacks while operating without trusted intermediaries. Although industry experts have touted decentralization as central to their promise and disruptive potential, it is…

Cryptography and Security · Computer Science 2025-06-04 Harang Ju , Ehsan Valavi , Madhav Kumar , Sinan Aral

Smart contracts have been a topic of interest in blockchain research and are a key enabling technology for Connected Autonomous Vehicles (CAVs) in the era of Web 3.0. These contracts enable trustless interactions without the need for…

Cryptography and Security · Computer Science 2025-05-20 Xingchen Sun , Runhua Xu , Wei Ni , Li Duan , Chao Li

Blockchain technology and decentralized finance (DeFi) are reshaping global financial systems. Despite their impact, the spatial distribution of public sentiment and its economic and geopolitical determinants are often overlooked. This…

General Economics · Economics 2025-02-04 Yuqi Chen , Yifan Li , Kyrie Zhixuan Zhou , Xiaokang Fu , Lingbo Liu , Shuming Bao , Daniel Sui , Luyao Zhang

This study provides a practical introduction to high-frequency trading in blockchain-based currency markets. These types of markets have some specific characteristics that differentiate them from the stock markets, such as a large number of…

General Economics · Economics 2023-04-19 Vittorio Astarita

Decentralized finance (DeFi) markets spread across Layer-1 (L1) and Layer-2 (L2) blockchains rely on arbitrage to keep prices aligned. Today most price gaps are closed against centralized exchanges (CEXes), whose deep liquidity and fast…

Cryptography and Security · Computer Science 2025-06-19 Burak Öz , Christof Ferreira Torres , Christoph Schlegel , Bruno Mazorra , Jonas Gebele , Filip Rezabek , Florian Matthes

With the emerging developments of the Metaverse, a virtual world where people can interact, socialize, play, and conduct their business, it has become critical to ensure that the underlying systems are transparent, secure, and trustworthy.…

Machine Learning · Computer Science 2023-06-21 Dev Gurung , Shiva Raj Pokhrel , Gang Li

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
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