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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

Automated market makers (AMMs) are pricing mechanisms utilized by decentralized exchanges (DEX). Traditional AMM approaches are constrained by pricing solely based on their own liquidity pool, without consideration of external markets or…

Machine Learning · Computer Science 2024-08-27 Daniel Jiwoong Im , Alexander Kondratskiy , Vincent Harvey , Hsuan-Wei Fu

Automated Market Makers (AMMs) are decentralized exchange protocols that provide continuous access to token liquidity without the need for order books or traditional market makers. However, this innovation has failed to scale when it comes…

Computational Engineering, Finance, and Science · Computer Science 2025-06-02 Sumit Vohra

We introduce a new class of automated market maker (AMM), the \emph{partially active automated market maker} (PA-AMM). PA-AMM divides its reserves into two parts, the active and the passive parts, and uses only the active part for trading.…

Mathematical Finance · Quantitative Finance 2026-02-11 Sunghun Ko

MEV attacks have been an omnipresent evil in the blockchain world, an implicit tax that uninformed users pay for using the service. The problem arises from the miners' ability to reorder and insert arbitrary transactions in the blocks they…

Cryptography and Security · Computer Science 2022-11-29 Dev Churiwala , Bhaskar Krishnamachari

The asset trading volume on blockchain-based exchanges (DEX) increased substantially since the advent of Automated Market Makers (AMM). Yet, AMMs and their forks compete on the same blockchain, incurring unnecessary network and block-space…

Cryptography and Security · Computer Science 2021-06-21 Liyi Zhou , Kaihua Qin , Arthur Gervais

Passive liquidity providers (LPs) in automated market makers (AMMs) face losses due to adverse selection (LVR), which static trading fees often fail to offset in practice. We study the key determinants of LP profitability in a dynamic…

Trading and Market Microstructure · Quantitative Finance 2025-08-12 Steven Campbell , Philippe Bergault , Jason Milionis , Marcel Nutz

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

Possible manipulation of user transactions by miners in a permissionless blockchain systems is a growing concern. This problem is a pervasive and systemic issue, known as Miner Extractable Value (MEV), incurs highs costs on users of…

Cryptography and Security · Computer Science 2023-07-06 Bulat Nasrulin , Georgy Ishmaev , Jérémie Decouchant , Johan Pouwelse

Maximal Extractable Value (MEV) represents billions of dollars in extracted value that fundamentally shapes blockchain network dynamics and participant incentives. While research has focused on MEV extraction and mitigation, we lack…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-05-01 Andrei Seoev , Dmitry Belousov , Anastasiia Smirnova , Ksenia Kurinova , Aleksei Smirnov , Denis Fedyanin , Yury Yanovich

Automated Market Makers (AMMs) are decentralized applications that allow users to exchange crypto-tokens without the need for a matching exchange order. AMMs are one of the most successful DeFi use cases: indeed, major AMM platforms process…

Cryptography and Security · Computer Science 2022-07-20 Massimo Bartoletti , James Hsin-yu Chiang , Alberto Lluch-Lafuente

Dynamic-weight AMMs (aka Temporal Function Market Makers, TFMMs) implement algorithmic asset allocation, analogous to index or smart beta funds, by continuously updating pools' weights. A strategy updates target weights over time, and…

Trading and Market Microstructure · Quantitative Finance 2026-02-26 Matthew Willetts , Christian Harrington

Decentralized exchange platforms such as Uniswap and Balancer operate on several pools where each pool contains two or more cryptocurrencies and constitutes direct trading pairs. The drawbacks here are that liquidity providing requires…

Information Theory · Computer Science 2025-07-31 Wittawat Kositwattanarerk

As an integral part of the decentralized finance (DeFi) ecosystem, decentralized exchanges (DEXs) with automated market maker (AMM) protocols have gained massive traction with the recently revived interest in blockchain and distributed…

Trading and Market Microstructure · Quantitative Finance 2023-03-16 Jiahua Xu , Krzysztof Paruch , Simon Cousaert , Yebo Feng

One of the exciting recent developments in decentralized finance (DeFi) has been the development of decentralized cryptocurrency exchanges that can autonomously handle conversion between different cryptocurrencies. Decentralized exchange…

Trading and Market Microstructure · Quantitative Finance 2021-01-11 Bhaskar Krishnamachari , Qi Feng , Eugenio Grippo

Although modern blockchains almost universally produce blocks at fixed intervals, existing models still lack an analytical formula for the loss-versus-rebalancing (LVR) incurred by Automated Market Makers (AMMs) liquidity providers in this…

Mathematical Finance · Quantitative Finance 2025-05-16 Alex Nezlobin , Martin Tassy

Maximal Extractable Value (MEV) has emerged as a new frontier in the design of blockchain systems. In this paper, we propose making the MEV extraction rate as part of the protocol design space. Our aim is to leverage this parameter to…

Computer Science and Game Theory · Computer Science 2024-10-02 Pedro Braga , Georgios Chionas , Piotr Krysta , Stefanos Leonardos , Georgios Piliouras , Carmine Ventre

Decentralized exchanges are widely used platforms for trading crypto assets. The most common types work with automated market makers (AMM), allowing traders to exchange assets without needing to find matching counterparties. Thereby,…

General Economics · Economics 2024-02-12 Matthias Hafner , Helmut Dietl

The rise of AI agents powered by Large Language Models (LLMs) presents critical challenges: how to securely execute and migrate these agents across heterogeneous environments while protecting sensitive user data, maintaining availability…

Operating Systems · Computer Science 2025-09-25 Yiwei Yang , Aibo Hu , Yusheng Zheng , Brian Zhao , Xinqi Zhang , Dawei Xiang , Kexin Chu , Wei Zhang , Andi Quinn

Automated Market Makers (AMMs) are a cornerstone of decentralized finance. They are smart contracts (stateful programs) running on blockchains. They enable virtual token exchange: traders swap tokens with the AMM for a fee, while liquidity…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-09-03 Hongyin Chen , Amit Vaisman , Ittay Eyal