Related papers: Attacks on Dynamic DeFi Interest Rate Curves
Decentralized Finance (DeFi) money markets have seen explosive growth in recent years, with billions of dollars borrowed in various cryptocurrency assets. Key to the safety of money markets is the implementation of interest rates that…
Decentralized Finance (DeFi) has reshaped the possibilities of reserve banking in the form of the Collateralized Debt Position (CDP). Key to the safety of CDPs is the money supply architecture that enables issued debt to maintain its value.…
Decentralized finance (DeFi) borrowing and lending platforms are crucial to the decentralized economy, involving two main participants: lenders who provide assets for interest and borrowers who offer collateral exceeding their debt and pay…
We coin the term *Protocols for Loanable Funds (PLFs)* to refer to protocols which establish distributed ledger-based markets for loanable funds. PLFs are emerging as one of the main applications within Decentralized Finance (DeFi), and use…
Decentralized Finance (DeFi) has revolutionized lending by replacing intermediaries with algorithm-driven liquidity pools. However, existing platforms like Aave and Compound rely on static interest rate curves and collateral requirements…
The canonical proportional-integral-derivative (PID) control approach has been widely used in industrial application due to their simplicity and ease of use. However, its corresponding controller parameters are hard to be adjusted,…
Proportional-Integral-Derivative (PID) control has been the workhorse of control technology for about a century. Yet to this day, designing and tuning PID controllers relies mostly on either tabulated rules (Ziegler-Nichols) or on classical…
In this paper, we will consider a class of continuous-time stochastic control systems with both unknown nonlinear structure and unknown disturbances, and investigate the capability of the classical proportional-integral-derivative(PID)…
This paper studies a basic model of a dynamical distribution network, where the network topology is given by a directed graph with storage variables corresponding to the vertices and flow inputs corresponding to the edges. We aim at…
Proportional-integral-derivative (PID) controller is widely used across various industrial process control applications because of its straightforward implementation. However, it can be challenging to fine-tune the PID parameters in…
The Proportional-Integral-Derivative Controller is widely used in industries for process control applications. Fractional-order PID controllers are known to outperform their integer-order counterparts. In this paper, we propose a new…
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…
Proportional-integral-derivative (PID) structured controller is the most popular class of industrial control but still could not be appropriately exploited in fuzzy systems. To gain the practicability and tractability of fuzzy systems, this…
This paper suggests to replace PIs and PIDs, which play a key role in control engineering, by intelligent Proportional-Derivative feedback loops, or iPDs, which are derived from model-free control. This standpoint is enhanced by a…
The notion of a credit spread curve is fundamental in fixed income investing, but in practice it is not `given' and needs to be constructed from bond prices either for a particular issuer, or for a sector rating-by-rating. Rather than…
Controlling the behaviors of large language models (LLM) is fundamental to their safety alignment and reliable deployment. However, existing steering methods are primarily driven by empirical insights and lack theoretical performance…
A Proportional- Integral- Derivative (PID) controller is required to bring a system back to the stable operating region as soon as possible following a disturbance or discrepancy. For successful operation of the PID controller, it is…
This paper offers a new class of models of the term structure of interest rates. We allow each instantaneous forward rate to be driven by a different stochastic shock, constrained in such a way as to keep the forward rate curve continuous.…
By adopting the polynomial interpolation method, we propose an approach to hedge against the interest-rate risk of the default-free bonds by measuring the nonparallel movement of the yield-curve, such as the translation, the rotation and…
Proportional-integral-derivative (PID) control underlies more than $97\%$ of automated industrial processes. Controlling these processes effectively with respect to some specified set of performance goals requires finding an optimal set of…