English
Related papers

Related papers: An Evaluation System for DeFi Lending Protocols

200 papers

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

In Decentralized Finance (DeFi), automated market makers typically implement liquidity provisioning protocols. These protocols allow third-party liquidity providers (LPs) to provide assets to facilitate trade in exchange for fees. This…

Computer Science and Game Theory · Computer Science 2025-07-29 Adithya Bhaskara , Rafael Frongillo , Maneesha Papireddygari

Lending within decentralized finance (DeFi) has facilitated over \$100 billion of loans since 2020. A long-standing inefficiency in DeFi lending protocols such as Aave is the use of static pricing mechanisms for loans. These mechanisms have…

Computer Science and Game Theory · Computer Science 2025-03-25 Tarun Chitra

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

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

Financial markets are undergoing an unprecedented transformation. Technological advances have brought major improvements to the operations of financial services. While these advances promote improved accessibility and convenience,…

Trading and Market Microstructure · Quantitative Finance 2023-12-05 Agostino Capponi , Garud Iyengar , Jay Sethuraman

Blockchain-based decentralised lending is a rapidly growing and evolving alternative to traditional lending, but it poses new risks. To mitigate these risks, lending protocols have integrated automated risk management tools into their smart…

Risk Management · Quantitative Finance 2025-10-02 Erum Iftikhar , Wei Wei , John Cartlidge

Decentralized finance (DeFi) is known for its unique mechanism design, which applies smart contracts to facilitate peer-to-peer transactions. The decentralized bank is a typical DeFi application. Ideally, a decentralized bank should be…

General Economics · Economics 2025-08-11 Yufan Zhang , Zichao Chen , Yutong Sun , Yulin Liu , Luyao Zhang

Decentralized Finance (DeFi), a blockchain powered peer-to-peer financial system, is mushrooming. Two years ago the total value locked in DeFi systems was approximately 700m USD, now, as of April 2022, it stands at around 150bn USD. The…

Cryptography and Security · Computer Science 2022-09-16 Sam M. Werner , Daniel Perez , Lewis Gudgeon , Ariah Klages-Mundt , Dominik Harz , William J. Knottenbelt

Billions of dollars are lost every year in DeFi platforms by transactions exploiting business logic or accounting vulnerabilities. Existing defenses focus on static code analysis, public mempool screening, attacker contract detection, or…

Cryptography and Security · Computer Science 2025-10-21 Abdulrahman Alhaidari , Balaji Palanisamy , Prashant Krishnamurthy

Much of the recent excitement around decentralized finance (DeFi) comes from hopes that DeFi can be a secure, private, less centralized alternative to traditional finance systems. However, people moving to DeFi sites in hopes of improving…

Cryptography and Security · Computer Science 2023-02-07 Philipp Winter , Anna Harbluk Lorimer , Peter Snyder , Benjamin Livshits

Flash Loan attack can grab millions of dollars from decentralized vaults in one single transaction, drawing increasing attention from the Decentralized Finance (DeFi) players. It has also demonstrated an exciting opportunity that a huge…

Computational Finance · Quantitative Finance 2021-02-02 Yixin Cao , Chuanwei Zou , Xianfeng Cheng

Flash Loan, as an emerging service in the decentralized finance ecosystem, allows users to request a non-collateral loan. While providing convenience, it also enables attackers to launch malicious operations with a large amount of asset…

Cryptography and Security · Computer Science 2021-04-22 Dabao Wang , Siwei Wu , Ziling Lin , Lei Wu , Xingliang Yuan , Yajin Zhou , Haoyu Wang , Kui Ren

In decentralized finance (DeFi), stablecoins like DAI are designed to offer a stable value amidst the fluctuating nature of cryptocurrencies. We examine the class of crypto-backed stable derivatives, with a focus on mechanisms for price…

Risk Management · Quantitative Finance 2024-02-29 Zhenbang Feng , Hardhik Mohanty , Bhaskar Krishnamachari

Total value locked (TVL) is widely used to measure the size and popularity of decentralized finance (DeFi). However, TVL can be easily manipulated and inflated through "double counting" activities such as wrapping and leveraging. As…

General Finance · Quantitative Finance 2025-07-08 Yichen Luo , Yebo Feng , Jiahua Xu , Paolo Tasca

This research introduces the Decentralized Finance (DeFi) TrustBoost Framework, which combines blockchain technology and Explainable AI to address challenges faced by lenders underwriting small business loan applications from low-wealth…

Cryptography and Security · Computer Science 2025-12-02 Swati Sachan , Dale S. Fickett

DeFi (Decentralized Finance) is one of the most important applications of today's cryptocurrencies and smart contracts. It manages hundreds of billions in Total Value Locked (TVL) on-chain, yet it remains susceptible to common DeFi price…

Cryptography and Security · Computer Science 2025-10-28 Juantao Zhong , Daoyuan Wu , Ye Liu , Maoyi Xie , Yang Liu , Yi Li , Ning Liu

The rapid advancement of large language models (LLMs) demands increasingly reliable evaluation, yet current centralized evaluation suffers from opacity, overfitting, and hardware-induced variance. Our empirical analysis reveals an alarming…

Artificial Intelligence · Computer Science 2026-02-10 Yifan Yang , Jinjia Li , Kunxi Li , Puhao Zheng , Yuanyi Wang , Zheyan Qu , Yang Yu , Jianmin Wu , Ming Li , Hongxia Yang

Decentralized Finance (DeFi) is a new paradigm in the creation, distribution, and utilization of financial services via the integration of blockchain technology. Our research conducts a comprehensive introduction and meticulous…

Cryptography and Security · Computer Science 2023-12-04 Erya Jiang , Bo Qin , Qin Wang , Zhipeng Wang , Qianhong Wu , Jian Weng , Xinyu Li , Chenyang Wang , Yuhang Ding , Yanran Zhang

We explore the adoption of graph representation learning (GRL) algorithms to investigate similarities across services offered by Decentralized Finance (DeFi) protocols. Following existing literature, we use Ethereum transaction data to…

Statistical Finance · Quantitative Finance 2024-04-25 Junliang Luo , Stefan Kitzler , Pietro Saggese