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We discuss numerous justifications for why crypto-currencies would be highly conducive for the smooth functioning of today's society. We provide several comparisons between cryptocurrencies issued by blockchain projects, crypto, and…

General Economics · Economics 2023-07-18 Ravi Kashyap

This work explores the formation and propagation of systemic risks across traditional finance (TradFi) and decentralized finance (DeFi), offering a comparative framework that bridges these two increasingly interconnected ecosystems. We…

Risk Management · Quantitative Finance 2025-08-19 Sabrina Aufiero , Silvia Bartolucci , Fabio Caccioli , Pierpaolo Vivo

Technological advancement drives financial innovation, reshaping the traditional finance landscape and redefining user-market interactions. The rise of blockchain and Decentralized Finance (DeFi) underscores this intertwined evolution of…

Computational Finance · Quantitative Finance 2024-11-27 Xihan Xiong , Zhipeng Wang , Tianxiang Cui , William Knottenbelt , Michael Huth

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

Today, several solutions for cross-blockchain asset transfers exist. However, these solutions are either tailored to specific assets or neglect finality guarantees that prevent assets from getting lost in transit. In this paper, we present…

Cryptography and Security · Computer Science 2021-10-12 Marten Sigwart , Philipp Frauenthaler , Christof Spanring , Michael Sober , Stefan Schulte

Stablecoins are a class of cryptocurrencies which aim at providing consistency and predictability, typically by pegging the token's value to that of a real world asset. Designing resilient decentralized stablecoins is a challenge, and…

Computer Science and Game Theory · Computer Science 2024-10-30 Nicholas Strohmeyer , Sriram Vishwanath , David Fridovich-Keil

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

Asset custody is a core financial service in which the custodian holds in-safekeeping assets on behalf of the client. Although traditional custody service is typically endorsed by centralized authorities, decentralized custody scheme has…

Cryptography and Security · Computer Science 2021-07-14 Zhaohua Chen , Guang Yang

Centralized monetary policy, leading to persistent inflation, is often inconsistent, untrustworthy, and unpredictable. Algorithmic stablecoins enabled by blockchain technology are promising in solving this problem. Algorithmic stablecoins…

General Economics · Economics 2022-01-17 Luyao Zhang , Yulin Liu

Current blockchain technologies provide very limited interoperability. Restrictions with regards to asset transfers and data exchange between different blockchains reduce usability and comfort for users, and hinder novel developments within…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-05-16 Michael Borkowski , Marten Sigwart , Philipp Frauenthaler , Taneli Hukkinen , Stefan Schulte

Decentralized finance, powered by blockchain technology, is growing day by day. This field, which emerged a few years ago, today manages $70 billion in assets. In this study, the concept of decentralized finance is discussed and explained…

General Finance · Quantitative Finance 2023-04-05 Mansur Bestas

Decentralized finance (DeFi) in Ethereum is a financial ecosystem built on the blockchain that has locked over 200 billion USD until April 2022. All transaction information is transparent and open when transacting through the DeFi protocol,…

Cryptography and Security · Computer Science 2022-05-20 Wenkai Li , Jiuyang Bu , Xiaoqi Li , Xianyi Chen

Decentralized Finance (DeFi) applications introduce novel financial instruments replicating and extending traditional ones through blockchain-based smart contracts. Among these applications, DeFi derivatives protocols enable the creation…

Computer Science and Game Theory · Computer Science 2026-05-05 Luca Pennella , Pietro Saggese , Fabio Pinelli , Letterio Galletta

With market capitalization exceeding USD250 billion by mid-2025, stablecoins have evolved from a crypto-focused innovation into a vital component of the global monetary structure. This paper identifies the characteristics of stablecoins…

General Finance · Quantitative Finance 2025-10-14 Hongzhe Wen , Songbai Li , R. S. M. Lau , Jamie Zhang

Stablecoins and central bank digital currencies are on the horizon in Asia, and in some cases have already arrived. This paper provides new analysis and a critique of the use case for both forms of digital currency. It provides time-varying…

General Economics · Economics 2022-02-16 Barry Eichengreen , Ganesh Viswanath-Natraj

Decentralized Finance (DeFi) is built on a fundamentally different paradigm: rather than having to trust individuals and institutions, participants in DeFi potentially only have to trust computer code that is enforced by a decentralized…

General Economics · Economics 2022-07-14 Kanis Saengchote , Talis Putniņš , Krislert Samphantharak

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

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

Currently cryptocurrencies and Decentralized Finance (DeFi), which enable financial services on public blockchains, represents a new growing trend in finance. In contrast to financial markets, ruled by traditional corporations, DeFi is…

Social and Information Networks · Computer Science 2024-01-04 Mar Grande , Florentino Borondo , Javier Borondo

Decentralized finance (DeFi) lacks centralized oversight, often resulting in heightened volatility. In contrast, centralized finance (CeFi) offers a more stable environment with institutional safeguards. Institutional backing can play a…

Computational Finance · Quantitative Finance 2025-12-23 Ihlas Sovbetov