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Federated learning (FL), as a distributed machine learning paradigm, promotes personal privacy by local data processing at each client. However, relying on a centralized server for model aggregation, standard FL is vulnerable to server…

Machine Learning · Computer Science 2021-08-31 Jun Li , Yumeng Shao , Kang Wei , Ming Ding , Chuan Ma , Long Shi , Zhu Han , H. Vincent Poor

Decentralized finance (DeFi) applications depend on accurate price oracles to ensure secure transactions, yet these oracles are highly vulnerable to manipulation, enabling attackers to exploit smart contract vulnerabilities for unfair asset…

Cryptography and Security · Computer Science 2025-02-12 Bo Gao , Yuan Wang , Qingsong Wei , Yong Liu , Rick Siow Mong Goh , David Lo

Recently emerging Decentralized Finance (DeFi) takes the promise of cryptocurrencies a step further, leveraging their decentralized networks to transform traditional financial products into trustless and transparent protocols that run…

Cryptography and Security · Computer Science 2021-06-28 Bowen Liu , Pawel Szalachowski , Jianying Zhou

Since the traffic conditions change over time, machine learning models that predict traffic flows must be updated continuously and efficiently in smart public transportation. Federated learning (FL) is a distributed machine learning scheme…

Machine Learning · Computer Science 2022-12-27 Chenhao Xu , Youyang Qu , Tom H. Luan , Peter W. Eklund , Yong Xiang , Longxiang Gao

We propose a novel adaptive reinforcement learning control approach for fault tolerant control of degrading systems that is not preceded by a fault detection and diagnosis step. Therefore, \textit{a priori} knowledge of faults that may…

Systems and Control · Electrical Eng. & Systems 2020-08-12 Ibrahim Ahmed , Marcos Quiñones-Grueiro , Gautam Biswas

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

Deep Learning is evolving fast and integrates into various domains. Finance is a challenging field for deep learning, especially in the case of interpretable artificial intelligence (AI). Although classical approaches perform very well with…

Machine Learning · Computer Science 2026-02-03 Kasymkhan Khubiev , Mikhail Semenov , Irina Podlipnova , Dinara Khubieva

Decentralized finance (DeFi) protocols are crypto projects developed on the blockchain to manage digital assets. Attacks on DeFi have been frequent and have resulted in losses exceeding \$77 billion. However, detection methods for malicious…

Cryptography and Security · Computer Science 2024-05-21 Wenkai Li , Xiaoqi Li , Yuqing Zhang , Zongwei Li

As of August 2022, blockchain-based assets boast a combined market capitalisation exceeding one trillion USD, among which the most prominent are the decentralised autonomous organisation (DAO) tokens associated with decentralised finance…

General Economics · Economics 2025-05-08 Teng Andrea Xu , Jiahua Xu , Kristof Lommers

The Holy Grail of a decentralised stablecoin is achieved on rigorous mathematical frameworks, obtaining multiple advantageous proofs: stability, convergence, truthfulness, faithfulness, and malicious-security. These properties could only be…

Cryptography and Security · Computer Science 2019-09-18 David Cerezo Sánchez

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

In this paper, we present a study of a Federated Learning (FL) system, based on the use of decentralized architectures to ensure trust and increase reliability. The system is based on the idea that the FL collaborators upload the (ciphered)…

Artificial Intelligence · Computer Science 2024-07-10 Lorenzo Cassano , Jacopo D'Abramo , Siraj Munir , Stefano Ferretti

Within just four years, the blockchain-based Decentralized Finance (DeFi) ecosystem has accumulated a peak total value locked (TVL) of more than 253 billion USD. This surge in DeFi's popularity has, unfortunately, been accompanied by many…

Cryptography and Security · Computer Science 2023-04-11 Liyi Zhou , Xihan Xiong , Jens Ernstberger , Stefanos Chaliasos , Zhipeng Wang , Ye Wang , Kaihua Qin , Roger Wattenhofer , Dawn Song , Arthur Gervais

The rise of Decentralized Finance (DeFi) has brought novel financial opportunities but also exposed serious security vulnerabilities, with flash loans frequently exploited for price manipulation attacks. These attacks, leveraging the atomic…

Cryptography and Security · Computer Science 2025-02-25 Ka Wai Wu

U.S. financial institutions deploying AI-based fraud detection face a fragmented compliance landscape spanning four regulatory frameworks -- OCC Bulletin 2011-12, SR 11-7, the CFPB AI circular, and FinCEN BSA/SAR requirements -- with no…

Machine Learning · Computer Science 2026-05-07 Mohammad Nasir Uddin

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

Reinforcement Learning (RL) in environments with complex, history-dependent reward structures poses significant challenges for traditional methods. In this work, we introduce a novel approach that leverages automaton-based feedback to guide…

Machine Learning · Computer Science 2025-10-20 Mahyar Alinejad , Alvaro Velasquez , Yue Wang , George Atia

Safely navigating through an urban environment without violating any traffic rules is a crucial performance target for reliable autonomous driving. In this paper, we present a Reinforcement Learning (RL) based methodology to DEtect and FIX…

Robotics · Computer Science 2025-07-21 Resul Dagdanov , Feyza Eksen , Halil Durmus , Ferhat Yurdakul , Nazim Kemal Ure

Federated learning (FL) enables collaborative training of a shared model on edge devices while maintaining data privacy. FL is effective when dealing with independent and identically distributed (iid) datasets, but struggles with non-iid…

Machine Learning · Computer Science 2023-07-06 Chenhao Xu , Jiaqi Ge , Yong Li , Yao Deng , Longxiang Gao , Mengshi Zhang , Yong Xiang , Xi Zheng

We develop a mathematical framework to optimize leveraged staking ("loopy") strategies in Decentralized Finance (DeFi), in which a staked asset is supplied as collateral, the underlying is borrowed and re-staked, and the loop can be…

Mathematical Finance · Quantitative Finance 2026-01-21 Bastien Baude , Vincent Danos , Hamza El Khalloufi
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