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Related papers: A Study of MEV Extraction Techniques on a First-Co…

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We study the economics of transaction reverts on Ethereum rollups and show that they are not accidental failures but equilibrium outcomes of MEV strategies. Using execution traces from major L2s, we find that over 80% of reverted…

Cryptography and Security · Computer Science 2025-09-23 Krzysztof Gogol , Manvir Schneider , Claudio Tessone

Automated Market Makers (AMMs) are decentralized applications that allow users to exchange crypto-tokens without the need for a matching exchange order. AMMs are one of the most successful DeFi use cases: indeed, major AMM platforms process…

Cryptography and Security · Computer Science 2022-07-20 Massimo Bartoletti , James Hsin-yu Chiang , Alberto Lluch-Lafuente

Trading on decentralized exchanges has been one of the primary use cases for permissionless blockchains with daily trading volume exceeding billions of U.S.~dollars. In the status quo, users broadcast transactions and miners are responsible…

Computer Science and Game Theory · Computer Science 2023-10-31 Matheus V. X. Ferreira , David C. Parkes

We study a new "laminated" queueing model for orders on batched trading venues such as decentralised exchanges. The model aims to capture and generalise transaction queueing infrastructure that has arisen to organise MEV activity on public…

Trading and Market Microstructure · Quantitative Finance 2024-01-17 Andrew W. Macpherson

Mobile edge computing (MEC) is a promising technology that enhances the efficiency of mobile blockchain networks, by enabling miners, often acted by mobile users (MUs) with limited computing resources, to offload resource-intensive mining…

Computer Science and Game Theory · Computer Science 2025-08-11 Licheng Ye , Zehui Xiong , Lin Gao , Dusit Niyato

Current blockchain execution throughput is limited by data contention, reducing execution layer parallelism. Fast Ahead-of-Formation Optimization (FAFO) is the first blockchain transaction scheduler to address this problem by reordering…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-07-16 Ryan Zarick , Isaac Zhang , Daniel Wong , Thomas Kim , Bryan Pellegrino , Mignon Li , Kelvin Wong

The convergence of mobile edge computing (MEC) and blockchain is transforming the current computing services in mobile networks, by offering task offloading solutions with security enhancement empowered by blockchain mining. Nevertheless,…

Signal Processing · Electrical Eng. & Systems 2021-09-30 Dinh C. Nguyen , Ming Ding , Pubudu N. Pathirana , Aruna Seneviratne , Jun Li , H. Vincent Poor

Decentralized Finance, mushrooming in permissionless blockchains, has attracted a recent surge in popularity. Due to the transparency of permissionless blockchains, opportunistic traders can compete to earn revenue by extracting Miner…

Cryptography and Security · Computer Science 2023-12-05 Zihao Li , Jianfeng Li , Zheyuan He , Xiapu Luo , Ting Wang , Xiaoze Ni , Wenwu Yang , Xi Chen , Ting Chen

Maximal Extractable Value (MEV) in Constant Function Market Making is fairly well understood. Does having dynamic weights, as found in liquidity boostrap pools (LBPs), Temporal-function market makers (TFMMs), and Replicating market makers…

Trading and Market Microstructure · Quantitative Finance 2024-04-26 Matthew Willetts , Christian Harrington

Transaction fee plays an important role in determining the priority of transaction processing in public blockchain systems. Owing to the observability of unconfirmed transactions, a strategic user can postpone his transaction broadcasting…

Computer Science and Game Theory · Computer Science 2025-12-29 Qianlan Bai , Yuedong Xu , Zhijian Zhou , Xin Wang

Blockchain enables peer-to-peer transactions in cyberspace without a trusted third party. The rapid growth of Ethereum and smart contract blockchains generally calls for well-designed Transaction Fee Mechanisms (TFMs) to allocate limited…

General Economics · Economics 2023-05-05 Luyao Zhang , Fan Zhang

We examine the current state of the cross-domain world, with particular focus on the protocols being used/planned for use by multi-domain users. We build on existing frameworks for analyzing how MEV is extracted, while also adding a new…

Cryptography and Security · Computer Science 2023-08-09 Conor McMenamin

We study builder-driven MEV arbitrage on BNB Smart Chain (BSC). BSC's Proposer-Builder Separation (PBS) adopts a leaner design: only whitelisted builders can participate, blocks are produced at shorter intervals, and private order flow…

Cryptography and Security · Computer Science 2026-05-01 Qin Wang , Ruiqiang Li , Guangsheng Yu , Vincent Gramoli , Shiping Chen

This paper investigates how pricing schemes can achieve efficient allocations in blockchain systems featuring multiple transaction queues under a global capacity constraint. I model a capacity-constrained blockchain where users submit…

General Economics · Economics 2025-02-26 Abdoulaye Ndiaye

Blockchains deploy Transaction Fee Mechanisms (TFMs) to determine which user transactions to include in blocks and determine their payments (i.e., transaction fees). Increasing demand and scarce block resources have led to high user…

Computer Science and Game Theory · Computer Science 2024-01-25 Sankarshan Damle , Manisha Padala , Sujit Gujar

Strategies related to the blockchain concept of Extractable Value (MEV/BEV), such as arbitrage, front-, or back-running create strong economic incentives for network nodes to reduce latency. Modified nodes, that minimize transaction…

Cryptography and Security · Computer Science 2025-02-10 Taro Tsuchiya , Liyi Zhou , Kaihua Qin , Arthur Gervais , Nicolas Christin

We study the impact of the order flow auction (OFA) in the context of the proposer-builder separation (PBS) mechanism in blockchains through a game-theoretic perspective. The OFA is designed to improve user welfare by redistributing maximal…

Theoretical Economics · Economics 2025-12-10 Ruofei Ma , Wenpin Tang , David Yao

As the core issue of blockchain, the mining requires solving a proof-of-work puzzle, which is resource expensive to implement in mobile devices due to high computing power needed. Thus, the development of blockchain in mobile applications…

Computer Science and Game Theory · Computer Science 2018-11-20 Zehui Xiong , Shaohan Feng , Dusit Niyato , Ping Wang , Zhu Han

Blockchain security is threatened by selfish mining, where a miner (operator) deviates from the protocol to increase their revenue. Selfish mining is exacerbated by adverse conditions: rushing (network propagation advantage for the selfish…

Cryptography and Security · Computer Science 2025-11-27 Roi Bar-Zur , Aviv Tamar , Ittay Eyal

A blockchain, such as Bitcoin, is an append-only, secure, transparent, distributed ledger. A fair blockchain is expected to have healthy metrics; high honest mining power, low processing latency, i.e., low wait times for transactions and…

Cryptography and Security · Computer Science 2020-03-03 Shoeb Siddiqui , Ganesh Vanahalli , Sujit Gujar
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