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Related papers: Managing Risk in DeFi Portfolios

200 papers

We address the liquidation problem arising from the credit risk management in decentralised finance (DeFi) by formulating it as an ergodic optimal control problem. In decentralised derivatives exchanges, liquidation is triggered whenever…

Trading and Market Microstructure · Quantitative Finance 2024-12-02 Jialun Cao , David Šiška

The web of today whether you prefer to call it web 2.0, web 3.0, web 5.0 or even the metaverse is at a critical stage of evolution and challenge, largely centered around its crisis of identity. Like teenagers who cannot assess properly…

Computers and Society · Computer Science 2022-12-13 Frederic Jumelle , Timothy Pagett , Ryan Lemand

Decentralized Autonomous Machines (DAMs) represent a transformative paradigm in automation economy, integrating artificial intelligence (AI), blockchain technology, and Internet of Things (IoT) devices to create self-governing economic…

Multiagent Systems · Computer Science 2026-02-12 Fernando Castillo , Oscar Castillo , Eduardo Brito , Simon Espinola

Flash Loan, as an emerging service in the decentralized finance ecosystem, allows users to request a non-collateral loan. While providing convenience, it also enables attackers to launch malicious operations with a large amount of asset…

Cryptography and Security · Computer Science 2021-04-22 Dabao Wang , Siwei Wu , Ziling Lin , Lei Wu , Xingliang Yuan , Yajin Zhou , Haoyu Wang , Kui Ren

We discuss numerous justifications for why crypto-currencies would be highly conducive for the smooth functioning of today's society. We provide several comparisons between cryptocurrencies issued by blockchain projects, crypto, and…

General Economics · Economics 2023-07-18 Ravi Kashyap

Federated Learning (FL) has recently emerged as a collaborative learning paradigm that can train a global model among distributed participants without raw data exchange to satisfy varying requirements. However, there remain several…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-03 Yuandou Wang , Zhiming Zhao

Fintech business models based on distributed ledgers -- and their smart-contract variants in particular -- offer the prospect of democratizing access to faster, anywhere-accessible, lower cost, reliable-and-secure high-quality financial…

Computers and Society · Computer Science 2017-03-01 Kim Kaivanto , Daniel Prince

In case of an accident between two autonomous vehicles equipped with emerging technologies, how do we apportion liability among the various players? A special liability regime has not even yet been established for damages that may arise due…

Cryptography and Security · Computer Science 2023-04-03 Mehmet Parlak

Bitcoin introduced delegation of control over a monetary system from a select few to all who participate in that system. This delegation is known as the decentralization of controlling power and is a powerful security mechanism for the…

Computers and Society · Computer Science 2020-09-29 Ashish Rajendra Sai , Jim Buckley , Brian Fitzgerald , Andrew Le Gear

Web 3.0 pursues the establishment of decentralized ecosystems based on blockchain technologies to drive the digital transformation of physical commerce and governance. Through consensus algorithms and smart contracts in blockchain, which…

Cryptography and Security · Computer Science 2023-03-24 Xiaoxu Ren , Minrui Xu , Dusit Niyato , Jiawen Kang , Zehui Xiong , Chao Qiu , Xiaofei Wang

In the last century the automotive industry has arguably transformed society, being one of the most complex, sophisticated and technologically advanced industries, with innovations ranging from hybrid, electric and self-driving smart cars…

Cryptography and Security · Computer Science 2024-02-05 Paula Fraga-Lamas , Tiago M. Fernandez-Carames

Fraud across the decentralized finance (DeFi) ecosystem is growing, with victims losing billions to DeFi scams every year. However, there is a disconnect between the reported value of these scams and associated legal prosecutions. We use…

Cryptography and Security · Computer Science 2023-05-29 Arianna Trozze , Toby Davies , Bennett Kleinberg

We explore the adoption of graph representation learning (GRL) algorithms to investigate similarities across services offered by Decentralized Finance (DeFi) protocols. Following existing literature, we use Ethereum transaction data to…

Statistical Finance · Quantitative Finance 2024-04-25 Junliang Luo , Stefan Kitzler , Pietro Saggese

Traditional paper-based document management has long posed challenges related to security, authenticity, and efficiency. Despite advances in digitalization, official documents remain vulnerable to forgery, loss, and unauthorized access.…

Cryptography and Security · Computer Science 2026-01-21 Cosmin-Iulian Irimia

This paper addresses the issue of blockchain protocol risks, a foundational category of risks affecting Distributed Ledger Technology (DLT) which underpins digital assets, smart contracts, and decentralised applications. It presents a…

Risk Management · Quantitative Finance 2023-10-18 Alex Nathan , Dimosthenis Kaponis , Saul Lustgarten

Data from interconnected vehicles may contain sensitive information such as location, driving behavior, personal identifiers, etc. Without adequate safeguards, sharing this data jeopardizes data privacy and system security. The current…

Decentralized control schemes are increasingly favored in various domains that involve multi-agent systems due to the need for computational efficiency as well as general applicability to large-scale systems. However, in the absence of an…

Robotics · Computer Science 2023-05-24 Yiwei Lyu , Wenhao Luo , John M. Dolan

DEX, or decentralized exchange, is a prominent class of decentralized finance (DeFi) applications on blockchains, attracting a total locked value worth tens of billions of USD today. This paper presents the first large-scale empirical study…

Cryptography and Security · Computer Science 2024-01-23 Jiaqi Chen , Yibo Wang , Yuxuan Zhou , Wanning Ding , Yuzhe Tang , XiaoFeng Wang , Kai Li

We engineer blockchain based risk managed portfolios by creating three funds with distinct risk and return profiles: 1) Alpha - high risk portfolio; 2) Beta - mimics the wider market; and 3) Gamma - represents the risk free rate adjusted to…

Portfolio Management · Quantitative Finance 2024-07-16 Ravi Kashyap

The rapid growth of Decentralized Finance (DeFi) boosts the Ethereum ecosystem. At the same time, attacks towards DeFi applications (apps) are increasing. However, to the best of our knowledge, existing smart contract vulnerability…

Cryptography and Security · Computer Science 2021-05-03 Siwei Wu , Dabao Wang , Jianting He , Yajin Zhou , Lei Wu , Xingliang Yuan , Qinming He , Kui Ren