Related papers: dYdX: Liquidity Providers' Incentive Programme Rev…
This work proposes a novel proof-of-work blockchain incentive scheme such that, barring exogenous motivations, following the protocol is guaranteed to be the optimal strategy for miners. Our blockchain takes the form of a directed acyclic…
BitTorrent is a widely-deployed, peer-to-peer file transfer protocol engineered with a "tit for tat" mechanism that encourages cooperation. Unfortunately, there is little incentive for nodes to altruistically provide service to their peers…
Dynamic pricing is commonly used to regulate congestion in shared service systems. This paper is motivated by the fact that in the presence of users with varying price sensitivity (responsiveness), conventional monotonic pricing can lead to…
Blockchain systems, such as Ethereum, are increasingly adopting layer-2 scaling solutions to improve transaction throughput and reduce fees. One popular layer-2 approach is the Optimistic Rollup, which relies on a mechanism known as a…
We establish innovative liquidity premium measures, and construct liquidity-adjusted return and volatility to model assets with extreme liquidity, represented by a portfolio of selected crypto assets, and upon which we develop a set of…
The goal of this paper is to explore the relationship between momentum effects and liquidity in cryptocurrency markets. Portfolios based on momentum-liquidity bivariate sorts are formed and rebalanced on a varying number of cryptocurrencies…
We consider an optimal trading problem over a finite period of time during which an investor has access to both a standard exchange and a dark pool. We take the exchange to be an order-driven market and propose a continuous-time setup for…
This work introduces a framework for evaluating onchain order flow auctions (OFAs), emphasizing the metric of price improvement. Utilizing a set of open-source tools, our methodology systematically attributes price improvements to specific…
We present a mathematical formulation of liquidity provision in decentralized exchanges. We focus on constant function market makers of utility indifference type, which include constant product market makers with concentrated liquidity as a…
Bug bounty programs have contributed significantly to security in technology firms in the last decade, but little is known about the role of reward incentives in producing useful outcomes. We analyze incentives and outcomes in Google's…
We consider a broker who has to place a large order which consumes a sizable part of average daily trading volume. The broker's aim is thus to minimize execution costs he incurs from the adverse impact of his trades on market prices. By…
Modern public blockchains like Ethereum rely on p2p networks to run distributed and censorship-resistant applications. With its wide adoption, it operates as a highly critical public ledger. On its transition to become more scalable and…
Recently, reinforcement learning with verifiable rewards (RLVR) has been widely used for enhancing the reasoning abilities of large language models (LLMs). A core challenge in RLVR involves managing the exchange between entropy and…
We study how a platform should design early exposure and rewards when creators strategically choose quality before release. A short testing window with a pass/fail bar induces a pass probability, the slope of which is the key sufficient…
PinFi is a class of novel protocols for decentralized pricing of dissipative assets, whose value naturally declines over time. Central to the protocol's functionality and its market efficiency is the role of liquidity providers (LPs). This…
This paper discusses the issues with liquidity that inhibit adoption of so-called wrapped tokens, i.e. digital assets issued in one blockchain ecosystem (origin) with representation in other blockchain networks (destination), and an…
Tool-using agents based on Large Language Models (LLMs) excel in tasks such as mathematical reasoning and multi-hop question answering. However, in long trajectories, agents often trigger excessive and low-quality tool calls, increasing…
Trade execution on Decentralized Exchanges (DEXes) is automatic and does not require individual buy and sell orders to be matched. Instead, liquidity aggregated in pools from individual liquidity providers enables trading between…
Language model (LM) post-training (or alignment) involves maximizing a reward function that is derived from preference annotations. Direct Preference Optimization (DPO) is a popular offline alignment method that trains a policy directly on…
We propose an incentive mechanism for the sponsored content provider market in which the communication of users can be represented by a graph and the private information of the users is assumed to have a continuous distribution function.…