English
Related papers

Related papers: Short Squeeze in DeFi Lending Market: Decentraliza…

200 papers

The decentralized and trustless nature of cryptocurrencies and blockchain technology leads to a shift in the digital world. The possibility to execute small programs, called smart contracts, on cryptocurrencies like Ethereum opened doors to…

Cryptography and Security · Computer Science 2021-01-15 Hendrik Amler , Lisa Eckey , Sebastian Faust , Marcel Kaiser , Philipp Sandner , Benjamin Schlosser

Decentralized Finance (DeFi), a financial ecosystem without centralized controlling organization, has introduced a new paradigm for lending and borrowing. However, its capital efficiency remains constrained by the inability to effectively…

Risk Management · Quantitative Finance 2025-03-26 Rik Ghosh , Arka Datta , Vidhi Aggarwal , Sudipan Sinha , Rajdeep Sengupta

Blockchains protect an ecosystem worth more than $500bn with strong security properties derived from the principle of decentralization. Is today's blockchain decentralized? In this paper, we empirically studied one of the least…

Cryptography and Security · Computer Science 2025-05-01 Sen Yang , Kartik Nayak , Fan Zhang

This paper maps the emerging market for decentralized credit in which ERC 4626 vaults and third-party curators, rather than monolithic lending protocols alone, increasingly determine underwriting and leverage decisions. We show that modular…

Risk Management · Quantitative Finance 2025-12-16 Anastasiia Zbandut , Carolina Goldstein

The financial sector's adoption of technology-driven data analysis has enhanced operational efficiency and revenue generation by leveraging personal sensitive data. However, the inherent characteristics of blockchain hinder decentralized…

Cryptography and Security · Computer Science 2023-11-13 Zhuangtong Huang , Jiawei Zhu , Zhongyu Huang , Yixin Xu , Jerome Yen , Ye Wang

Decentralized Finance (DeFi) lending enables permissionless borrowing via smart contracts. However, it faces challenges in optimizing interest rates, mitigating bad debt, and improving capital efficiency. Rule-based interest-rate models…

Machine Learning · Computer Science 2025-06-03 Hanxiao Qu , Krzysztof Gogol , Florian Groetschla , Claudio Tessone

The Internet of Vehicles (IoV) has great potential to transform transportation systems by enhancing road safety, reducing traffic congestion, and improving user experience through onboard infotainment applications. Decentralized data…

Cryptography and Security · Computer Science 2024-04-01 Jiani Fan , Minrui Xu , Jiale Guo , Lwin Khin Shar , Jiawen Kang , Dusit Niyato , Kwok-Yan Lam

Decentralized Finance (DeFi) on Ethereum has undergone significant transformations since its emergence during the DeFi summer of 2020. With the introduction of Proof of Stake (PoS) and Proposer-Builder Separation (PBS), the transaction…

General Economics · Economics 2025-05-27 Paul Janicot , Alex Vinyas

Decentralized Autonomous Organizations (DAOs) are blockchain-based organizations that facilitate decentralized governance. Today, DAOs not only hold billions of dollars in their treasury but also govern many of the most popular…

Cryptography and Security · Computer Science 2024-08-08 Rainer Feichtinger , Robin Fritsch , Lioba Heimbach , Yann Vonlanthen , Roger Wattenhofer

Credit exposure in Decentralized Finance (DeFi) is often implicit and token-mediated, creating a dense web of inter-protocol dependencies. Thus, a shock to one token may result in significant and uncontrolled contagion effects. As the DeFi…

Machine Learning · Computer Science 2026-02-05 Aijie Shu , Wenbin Wu , Gbenga Ibikunle , Fengxiang He

Intent-based cross-chain bridges have emerged as an alternative to traditional interoperability protocols by allowing off-chain entities (\emph{solvers}) to immediately fulfill users' orders by fronting their own liquidity. While improving…

Cryptography and Security · Computer Science 2026-02-23 André Augusto , Christof Ferreira Torres , André Vasconcelos , Miguel Correia

This paper proposes a decentralized, blockchain-based system for the publication of Common Vulnerabilities and Exposures (CVEs), aiming to mitigate the limitations of the current centralized model primarily overseen by MITRE. The proposed…

Cryptography and Security · Computer Science 2025-05-02 Novruz Amirov , Kemal Bicakci

Decentralized Finance (DeFi) lending protocols like Aave v3 rely on over-collateralization to secure loans, yet users frequently face liquidation due to volatile market conditions. Existing risk management tools utilize static health-factor…

Machine Learning · Computer Science 2026-04-17 Fernando Spadea , Oshani Seneviratne

Decentralized Finance (DeFi) offers a whole new investment experience and has quickly emerged as an enticing alternative to Centralized Finance (CeFi). Rapidly growing market size and active users, however, have also made DeFi a lucrative…

Cryptography and Security · Computer Science 2024-06-25 Mingyi Liu , Jun Ho Huh , HyungSeok Han , Jaehyuk Lee , Jihae Ahn , Frank Li , Hyoungshick Kim , Taesoo Kim

Many classical blockchains are known to have an embarrassingly low transaction throughput, down to Bitcoin's notorious seven transactions per second limit.Various proposals and implementations for increasing throughput emerged in the first…

Cryptography and Security · Computer Science 2023-03-08 Lioba Heimbach , Quentin Kniep , Yann Vonlanthen , Roger Wattenhofer

Permissionless blockchains offer an information environment where users can interact privately without fear of censorship. Financial services can be programmatically coded via smart contracts to automate transactions without the need for…

General Finance · Quantitative Finance 2022-12-13 Kanis Saengchote

Cross-chain interoperability is a core component of modern blockchain infrastructure, enabling seamless asset transfers and composable applications across multiple blockchain ecosystems. However, the transparency of cross-chain messages can…

Computational Engineering, Finance, and Science · Computer Science 2025-11-20 Chuanlei Li , Zhicheng Sun , Jing Xin Yuu , Xuechao Wang

Trading through decentralized exchanges (DEXs) has become crucial in today's blockchain ecosystem, enabling users to swap tokens efficiently and automatically. However, the capacity of miners to strategically order transactions has led to…

Computer Science and Game Theory · Computer Science 2023-09-25 Yuhao Li , Mengqian Zhang , Jichen Li , Elynn Chen , Xi Chen , Xiaotie Deng

Decentralized Finance (DeFi) is a nascent set of financial services, using tokens, smart contracts, and blockchain technology as financial instruments. We investigate four possible drivers of DeFi returns: exposure to cryptocurrency market,…

Computational Finance · Quantitative Finance 2024-03-07 Florentina Şoiman , Guillaume Dumas , Sonia Jimenez-Garces

Traditional blockchains grant the miner of a block full control not only over which transactions but also their order. This constitutes a major flaw discovered with the introduction of decentralized finance and allows miners to perform MEV…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-11-07 Orestis Alpos , Ignacio Amores-Sesar , Christian Cachin , Michelle Yeo