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Ethereum and its standardized token interface have formed decentralized finance (DeFi), an open financial system based on blockchain smart contracts. The DeFi ecosystem has become richer with the introduction of DeFi composability projects,…

Computer Science and Game Theory · Computer Science 2022-12-05 HyoungSung Kim , Hyun-Sik Kim , Yong-Suk Park

Peer-to-peer trading and the move to decentralized grids have reshaped the energy markets in the United States. Notwithstanding, such developments lead to new challenges, mainly regarding the safety and authenticity of energy trade. This…

The `Black Thursday' crisis in cryptocurrency markets demonstrated deleveraging risks in over-collateralized non-custodial stablecoins. We develop a stochastic model that helps explain deleveraging crises in these over-collateralized…

Trading and Market Microstructure · Quantitative Finance 2022-08-02 Ariah Klages-Mundt , Andreea Minca

Stablecoins have turned out to be the "killer" use case of the growing digital asset space. However, risk management frameworks, including regulatory ones, have been largely absent. In this paper, we address the critical question of…

Risk Management · Quantitative Finance 2024-01-25 Marcel Bluhm , Adrian Cachinero Vasiljević , Sébastien Derivaux , Søren Terp Hørlück Jessen

Lending protocols are one of the main applications of Decentralized Finance (DeFi), enabling crypto-assets loan markets with a total value estimated in the tens of billions of dollars. Unlike traditional lending systems, these protocols…

Computer Science and Game Theory · Computer Science 2025-06-19 Massimo Bartoletti , Enrico Lipparini

Decentralized finance introduces new business models and use cases as part of digital finance. Restaking has recently emerged as a transformative mechanism in DeFi, promising extra yields but introducing complex and interconnected risks.…

General Finance · Quantitative Finance 2026-04-17 Hasret Ozan Sevim , Christof Ferreira Torres

Cryptocurrency can be understood as a digital asset transacted among participants in the crypto economy. Every cryptocurrency must have an associated Blockchain. Blockchain is a Distributed Ledger Technology (DLT) which supports…

Computers and Society · Computer Science 2024-05-20 Carlos Alberto Durigan Junior , Fernando Jose Barbin Laurindo

In this paper, we analyze various Decentralized Finance (DeFi) protocols in terms of their token distributions. We propose an iterative mapping process that allows us to split aggregate token holdings from custodial and escrow contracts and…

General Economics · Economics 2020-12-18 Matthias Nadler , Fabian Schär

Our study provides a survey on how existing stablecoins-- cryptocurrencies aiming at price stabilization-- peg their value to other assets, from the perspective of Decentralized Payment Systems (DPSs). This attempt is important because…

Cryptography and Security · Computer Science 2020-06-23 Makiko Mita , Kensuke Ito , Shohei Ohsawa , Hideyuki Tanaka

An algorithmic stablecoin is a type of cryptocurrency managed by algorithms (i.e., smart contracts) to dynamically minimize the volatility of its price relative to a specific form of asset, e.g., US dollar. As algorithmic stablecoins have…

Cryptography and Security · Computer Science 2021-01-22 Wenqi Zhao , Hui Li , Yuming Yuan

Decentralized finance (DeFi) has the potential to disrupt centralized finance by validating peer-to-peer transactions through tamper-proof smart contracts, thus significantly lowering the transaction cost charged by financial…

General Economics · Economics 2023-12-04 Ziqiao Ao , Lin William Cong , Gergely Horvath , Luyao Zhang

Cross-chain technology facilitates the interoperability among isolated blockchains on which users can freely communicate and transfer values. Existing cross-chain protocols suffer from the scalability problem when processing on-chain…

Cryptography and Security · Computer Science 2022-12-15 Yihao Guo , Minghui Xu , Dongxiao Yu , Yong Yu , Rajiv Ranjan , Xiuzhen Cheng

Blockchain technology is among the fastest-growing technologies in the world today. It has been adopted in diverse areas but mostly in financial systems, such as Bitcoin cryptocurrency. Therefore, it is a niche that has attracted interest…

Cryptography and Security · Computer Science 2021-06-30 Mabrook S. Al-Rakhami , Abdu Gumaei , Sk. Md. Mizanur Rahman , Atif Al-Amri

There appears to be an insatiable desire for spawning new bespoke blockchains to harness the functionality provided by blockchain technologies, resulting in a constant stream of blockchain start-up companies entering the market with their…

Cryptography and Security · Computer Science 2019-03-25 Sandra Johnson , Peter Robinson , John Brainard

Centralization enhances the efficiency of Artificial Intelligence (AI) but also introduces critical challenges, including single points of failure, inherent biases, data privacy risks, and scalability limitations. To address these issues,…

Machine Learning · Computer Science 2026-02-10 Elizabeth Lui , Rui Sun , Vatsal Shah , Xihan Xiong , Jiahao Sun , Davide Crapis , William Knottenbelt , Zhipeng Wang

An increasing number of industries rely on Internet-of-Things devices to track physical resources. Blockchain technology provides primitives to represent these resources as digital assets on a secure distributed ledger. Due to the…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-04-13 Martijn de Vos , Can Umut Ileri , Johan Pouwelse

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 increasing demand for sustainability and compliance with global carbon regulations has posed significant challenges for small and medium-sized enterprises (SMEs). This paper proposes a blockchain-based decentralized carbon credit…

Cryptography and Security · Computer Science 2025-04-24 Yun-Cheng Tsai

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

We consider the problem of cross-chain payment whereby customers of different escrows---implemented by a bank or a blockchain smart contract---successfully transfer digital assets without trusting each other. Prior to this work, cross-chain…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-07-17 Rob van Glabbeek , Vincent Gramoli , Pierre Tholoniat
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