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Stablecoins promise to bridge fiat currencies with the world of cryptocurrencies. They provide a way for users to take advantage of the benefits of digital currencies, such as ability to transfer assets over the internet, provide assurance…

General Finance · Quantitative Finance 2019-10-23 Amani Moin , Emin Gün Sirer , Kevin Sekniqi

In this white paper, we propose a blockchain-based system, named AME, which is a decentralized infrastructure and application platform with enhanced security and self-management properties. The AME blockchain technology aims to increase the…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-12-20 Lanny Z. N. Yuan , Huaibing Jian , Peng Liu , Pengxin Zhu , ShanYang Fu

We present a family of multi-asset automated market makers whose liquidity curves are derived from the financial principles of self financing transactions and rebalancing. The constant product market maker emerges as a special case.

Mathematical Finance · Quantitative Finance 2022-05-10 Eric Forgy , Leo Lau

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

Stablecoins have emerged as a significant component of global financial infrastructure, with aggregate market capitalization surpassing USD250 billion in 2025. Their increasing integration into payment and settlement systems has…

Risk Management · Quantitative Finance 2025-10-14 Hongzhe Wen , R. S. M. Lau

Current approaches to the cryptocurrency automated market makers result in poor impermanent loss and capital efficiency. We analyze the mechanics underlying DODO Exchange's proactive market maker (PMM) to probe for solutions to these…

Trading and Market Microstructure · Quantitative Finance 2025-01-08 Wayne Chen , Songwei Chen , Preston Rozwood

Automated Market Maker (AMM)-based Decentralized Exchanges (DEXs) are crucial in Decentralized Finance (DeFi), but Ethereum implementations suffer from high transaction costs and price synchronization challenges. To address these…

Computational Engineering, Finance, and Science · Computer Science 2025-08-28 Walter Hernandez Cruz , Firas Dahi , Yebo Feng , Jiahua Xu , Aanchal Malhotra , Paolo Tasca

Our study provides a survey on how existing stablecoins-- cryptocurrencies aiming at price stabilization-- peg their value to other assets, from the perspective of Decentralized Payment Systems (DPSs). This attempt is important because…

Cryptography and Security · Computer Science 2020-06-23 Makiko Mita , Kensuke Ito , Shohei Ohsawa , Hideyuki Tanaka

This paper studies liquid staking tokens (LSTs) on automated market makers (AMMs), both theoretically and empirically. LSTs are tokenized representations of staked assets on proof-of-stake blockchains. First, we model LST-liquidity on AMMs…

Cryptography and Security · Computer Science 2024-07-22 Krzysztof Gogol , Robin Fritsch , Malte Schlosser , Johnnatan Messias , Benjamin Kraner , Claudio Tessone

U.S. dollar stablecoins are increasingly used as payment and settlement instruments beyond cryptocurrency markets. With the enactment of the GENIUS Act in 2025, the United States established the first comprehensive federal framework…

General Economics · Economics 2026-04-21 Daniel Aronoff , F. Christopher Calabia , Anders Brownworth , Ashwanth Samuel , Neha Narula

Global illicit fund flows exceed an estimated $3.1 trillion annually, with stablecoins emerging as a preferred laundering medium due to their liquidity. While decentralized protocols increasingly adopt zero-knowledge proofs to obfuscate…

Cryptography and Security · Computer Science 2026-02-23 Luciano Juvinski , Haochen Li , Alessio Brini

Decentralized prediction markets (DePMs) allow open participation in event-based wagering without fully relying on centralized intermediaries. We review the history of DePMs which date back to 2011 and includes hundreds of proposals.…

Computational Engineering, Finance, and Science · Computer Science 2026-03-16 Nahid Rahman , Joseph Al-Chami , Jeremy Clark

Decentralised automated market makers (AMMs) have gained significant attention recently. We propose an adaptive and automated Dynamic Function Market Maker (DFMM) that addresses challenges in this space. Our DFMM protocol includes a data…

General Finance · Quantitative Finance 2023-07-26 Arman Abgaryan , Utkarsh Sharma

Automated market makers (AMMs) quote prices from pool state rather than from a limit order book. AMM pools often stay close to a reference price because arbitrageurs correct profitable mispricing. A large part of decentralized finance…

Computational Engineering, Finance, and Science · Computer Science 2026-05-08 Peihao Li , Nadia Dahmani , Wenqi Cai

In decentralized finance ("DeFi"), automated market makers (AMMs) enable traders to programmatically exchange one asset for another. Such trades are enabled by the assets deposited by liquidity providers (LPs). The goal of this paper is to…

Computer Science and Game Theory · Computer Science 2023-11-29 Jason Milionis , Ciamac C. Moallemi , Tim Roughgarden

Automated market makers are a popular mechanism used on decentralized exchange, through which users trade assets with each other directly and automatically through a liquidity pool and a fixed pricing function. The liquidity provider…

Mathematical Finance · Quantitative Finance 2024-11-27 Xue Dong He , Chen Yang , Yutian Zhou

Constant function market makers (CFMMs) are the most popular type of decentralized trading venue for cryptocurrency tokens. In this paper, we give a very general geometric framework (or 'axioms') which encompass and generalize many of the…

Optimization and Control · Mathematics 2023-08-17 Guillermo Angeris , Tarun Chitra , Theo Diamandis , Alex Evans , Kshitij Kulkarni

This paper presents a new artificial market simulation platform, PAMS: Platform for Artificial Market Simulations. PAMS is developed as a Python-based simulator that is easily integrated with deep learning and enabling various simulation…

Computational Finance · Quantitative Finance 2023-09-20 Masanori Hirano , Ryosuke Takata , Kiyoshi Izumi

A crypto coin designed to provide a stabilization instrument backed up by minded like financial investments instruments to maintain the purchase value of savings across time, in order to construct new tools for unstable economies.

General Finance · Quantitative Finance 2019-12-23 Leonardo Belen , Alejandro Baranek , Xavier Gonzalez

We propose a heterogeneous agent market model (HAM) in continuous time. The market is populated by fundamental traders and chartists, who both use simple linear trading rules. Most of the related literature explores stability, price…

General Economics · Economics 2019-02-27 Zsolt Bihary , Attila András Víg