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Trading on decentralized exchanges has been one of the primary use cases for permissionless blockchains with daily trading volume exceeding billions of U.S.~dollars. In the status quo, users broadcast transactions and miners are responsible…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , David C. Parkes

This work applies reinforcement learning (RL) from the AI machine learning field to derive an optimal Bitcoin-like blockchain mining strategy without knowing the details of the blockchain network model. Previously, the most profitable…

Cryptography and Security · Computer Science 2021-01-07 Taotao Wang , Soung Chang Liew , Shengli Zhang

We develop a formalism for reasoning about trading on decentralized exchanges on blockchains and a formulation of a particular form of maximal extractable value (MEV) that represents the total arbitrage opportunity extractable from on-chain…

Mathematical Finance · Quantitative Finance 2023-04-24 Alan Guo

The latency of the exchanges in Market Making (MM) is inevitable due to hardware limitations, system processing times, delays in receiving data from exchanges, the time required for order transmission to reach the market, etc. Existing…

Machine Learning · Computer Science 2025-05-20 Junzhe Jiang , Chang Yang , Xinrun Wang , Zhiming Li , Xiao Huang , Bo Li

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

Market making (MM) has attracted significant attention in financial trading owing to its essential function in ensuring market liquidity. With strong capabilities in sequential decision-making, Reinforcement Learning (RL) technology has…

Machine Learning · Computer Science 2023-08-21 Hui Niu , Siyuan Li , Jiahao Zheng , Zhouchi Lin , Jian Li , Jian Guo , Bo An

We introduce a decentralised, algorithmic framework for permissionless, multi-strategy capital allocation via tokenised, automated vaults. The system is designed to function analogously to a multi-strategy asset management company, but…

General Finance · Quantitative Finance 2025-09-25 Arman Abgaryan , Utkarsh Sharma , Joshua Tobkin

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

Market makers play an important role in providing liquidity to markets by continuously quoting prices at which they are willing to buy and sell, and managing inventory risk. In this paper, we build a multi-agent simulation of a dealer…

Trading and Market Microstructure · Quantitative Finance 2019-11-15 Sumitra Ganesh , Nelson Vadori , Mengda Xu , Hua Zheng , Prashant Reddy , Manuela Veloso

Cryptocurrency investment is inherently difficult due to its shorter history compared to traditional assets, the need to integrate vast amounts of data from various modalities, and the requirement for complex reasoning. While deep learning…

Trading and Market Microstructure · Quantitative Finance 2025-01-08 Yichen Luo , Yebo Feng , Jiahua Xu , Paolo Tasca , Yang Liu

The diversity of prosumers' resources in energy communities can provide significant technical and economic benefits to both prosumers and the distribution system operator (DSO). To maximize these benefits, a coordination framework is…

Systems and Control · Electrical Eng. & Systems 2025-07-08 Milad Kabirifar , Biswarup Mukherjee , S. Gokul Krishnan , Charalambos Konstantinou , Subhash Lakshminarayana

Ethereum has emerged as a leading platform for decentralized applications (dApps) due to its robust smart contract capabilities. One of the critical issues in the Ethereum ecosystem is Maximal Extractable Value (MEV), a concept that has…

Cryptography and Security · Computer Science 2023-12-21 Dipankar Sarkar

Cross-chain bridges constitute the single largest vector of systemic risk in Decentralized Finance (DeFi), accounting for over \$2.8 billion in losses since 2021. The fundamental vulnerability lies in the binary nature of existing bridge…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-01-21 Shengwei You , Aditya Joshi , Andrey Kuehlkamp , Jarek Nabrzyski

We consider Uniswap-like automated market makers, and, specifically, constant product liquidity pools, operating on blockchains. An important feature of Uniswap is the ability for a trader to carry out a sequence of asset swaps atomically,…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-01-28 Jon Michael Aanes , Jesper Balman Gravgaard , Peter Bro Miltersen , Kurt Nielsen , Mohsen Pourpouneh

We design a prediction market to recover a complete and fully general probability distribution over a random variable. Traders buy and sell interval securities that pay \$1 if the outcome falls into an interval and \$0 otherwise. Our market…

Computer Science and Game Theory · Computer Science 2021-02-17 Miroslav Dudík , Xintong Wang , David M. Pennock , David M. Rothschild

Long-horizon robotic manipulation remains challenging for reinforcement learning (RL) because sparse rewards provide limited guidance for credit assignment. Practical policy improvement thus relies on richer intermediate supervision, such…

Robotics · Computer Science 2026-04-22 Yiming Mao , Zixi Yu , Weixin Mao , Yinhao Li , Qirui Hu , Zihan Lan , Minzhao Zhu , Hua Chen

Blockchains offer strong security guarantees, but they cannot protect the ordering of transactions. Powerful players, such as miners, sequencers, and sophisticated bots, can reap significant profits by selectively including, excluding, or…

Cryptography and Security · Computer Science 2023-10-24 Sen Yang , Fan Zhang , Ken Huang , Xi Chen , Youwei Yang , Feng Zhu

Liquidity providers are essential for the function of decentralized exchanges to ensure liquidity takers can be guaranteed a counterparty for their trades. However, liquidity providers investing in liquidity pools face many risks, the most…

Trading and Market Microstructure · Quantitative Finance 2023-01-18 Rohan Tangri , Peter Yatsyshin , Elisabeth A. Duijnstee , Danilo Mandic

Block production on the Ethereum blockchain has adopted an auction-based mechanism known as Proposer--Builder Separation (PBS), where validators outsource block creation to builders competing in MEV--Boost auctions for Maximal Extractable…

Computer Science and Game Theory · Computer Science 2025-10-01 Fei Wu , Thomas Thiery , Stefanos Leonardos , Carmine Ventre

Global health emergencies, such as the COVID-19 pandemic, have exposed critical weaknesses in traditional medical supply chains, including inefficiencies in resource allocation, lack of transparency, and poor adaptability to dynamic…

Multiagent Systems · Computer Science 2025-07-24 Mariam ALMutairi , Hyungmin Kim