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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

Stablecoins have historically depegged due from par to large sales, possibly of speculative nature, or poor reserve asset quality. Using a global game which addresses both concerns, we show that the selling pressure on stablecoin holders…

Trading and Market Microstructure · Quantitative Finance 2026-03-09 Brian Zhu

Recently, the notion of cryptocurrencies has come to the fore of public interest. These assets that exist only in electronic form, with no underlying value, offer the owners some protection from tracking or seizure by government or…

Mathematical Finance · Quantitative Finance 2018-05-09 Carey Caginalp

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

Blockchain is a decentralized system that allows transaction transmission and storage according to the roles of the Consensus algorithm and Smart contracts. Non-fungible tokens (NFTs) consolidate the best characteristics of blockchain…

Cryptography and Security · Computer Science 2022-09-07 Subhash Shankar Pandey , Tadasha Dash , Prasanta K. Panigrahi , Ahmed Farouk

The global financial system stands at an inflection point. Stablecoins represent the most significant evolution in banking since the abandonment of the gold standard, positioned to enable "Banking 2.0" by seamlessly integrating…

Emerging Technologies · Computer Science 2025-08-18 Kevin McNamara , Rhea Pritham Marpu

Collateral is an item of value serving as security for the repayment of a loan. In blockchain-based loans, cryptocurrencies serve as the collateral. The high volatility of cryptocurrencies implies a serious barrier of entry with a common…

Computers and Society · Computer Science 2023-06-21 Tom Azoulay , Uri Carl , Ori Rottenstreich

Atomic swaps enable the transfer of value between the cryptocurrencies of various blockchains without the need to trust an intermediary. In this paper, we propose the concept of atomic loans, which utilize atomic swap technology to allow…

Cryptography and Security · Computer Science 2019-01-17 Matthew Black , TingWei Liu , Tony Cai

In this review, we evaluate the mechanisms behind the decentralized finance protocols for generating stable, passive income. Currently, such savings interest rates can be as high as 20% annually, payable in traditional currency values such…

Computers and Society · Computer Science 2021-08-16 Hakwan Lau , Stephen Tse

In recent years decentralized currencies developed through Blockchains are increasingly becoming popular because of their transparent nature and absence of a central controlling authority. Though a lot of computation power, disk space, and…

Databases · Computer Science 2023-05-15 Anirudha Paul

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

Stablecoins have become a foundational component of the digital asset ecosystem, with their market capitalization exceeding 230 billion USD as of May 2025. As fiat-referenced and programmable assets, stablecoins provide low-latency,…

General Economics · Economics 2025-08-07 Luyao Zhang

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

Algorithmic stablecoins (AS) are one special type of stablecoins that are not backed by any asset (equiv. without collateral). They stand to revolutionize the way a sovereign fiat operates. As implemented, these coins are poorly stabilized…

Computer Science and Game Theory · Computer Science 2023-04-12 Shange Fu , Qin Wang , Jiangshan Yu , Shiping Chen

Stablecoins face an unresolved trilemma of balancing decentralization, stability, and regulatory compliance. We present a hybrid stabilization protocol that combines crypto-collateralized reserves, algorithmic futures contracts, and…

Cryptography and Security · Computer Science 2025-06-09 Shengwei You , Andrey Kuehlkamp , Jarek Nabrzyski

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

The average cryptocurrency user today faces a difficult choice between centralized custodial wallets, which are notoriously prone to spontaneous collapse, or cumbersome self-custody solutions, which if not managed properly can cause a total…

Cryptography and Security · Computer Science 2023-08-31 Vivek Nair , Dawn Song

A crypto coin designed to provide a stabilization instrument backed up by minded like financial investments instruments to maintain the purchase value of savings across time, in order to construct new tools for unstable economies.

General Finance · Quantitative Finance 2019-12-23 Leonardo Belen , Alejandro Baranek , Xavier Gonzalez

Stablecoins, with a capitalization exceeding 200 billion USD as of January 2025, have shown significant growth, with annual transaction volumes exceeding 10 trillion dollars in 2023 and nearly doubling that figure in 2024. This exceptional…

General Economics · Economics 2025-07-21 Ahmed Mahrous , Maurantonio Caprolu , Roberto Di Pietro

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