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We study liquidity on decentralized exchanges (DEXs), identifying factors at the platform, blockchain, token pair, and liquidity pool levels with predictive power for market depth metrics. We introduce the v2 counterfactual spread metric, a…

Trading and Market Microstructure · Quantitative Finance 2025-01-20 Brian Z. Zhu , Dingyue Liu , Xin Wan , Gordon Liao , Ciamac C. Moallemi , Brad Bachu

Decentralized exchanges (DEXs) provide a means for users to trade pairs of assets on-chain without the need for a trusted third party to effectuate a trade. Amongst these, constant function market maker DEXs such as Uniswap handle the most…

Computer Science and Game Theory · Computer Science 2022-08-29 Zhou Fan , Francisco Marmolejo-Cossío , Ben Altschuler , He Sun , Xintong Wang , David C. Parkes

We consider Uniswap-like automated market makers, and, specifically, constant product liquidity pools, operating on blockchains. An important feature of Uniswap is the ability for a trader to carry out a sequence of asset swaps atomically,…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-01-28 Jon Michael Aanes , Jesper Balman Gravgaard , Peter Bro Miltersen , Kurt Nielsen , Mohsen Pourpouneh

Decentralized Exchanges (DEXes) enable users to create markets for exchanging any pair of cryptocurrencies. The direct exchange rate of two tokens may not match the cross-exchange rate in the market, and such price discrepancies open up…

Trading and Market Microstructure · Quantitative Finance 2022-01-17 Ye Wang , Yan Chen , Haotian Wu , Liyi Zhou , Shuiguang Deng , Roger Wattenhofer

Decentralized exchange platforms such as Uniswap and Balancer operate on several pools where each pool contains two or more cryptocurrencies and constitutes direct trading pairs. The drawbacks here are that liquidity providing requires…

Information Theory · Computer Science 2025-07-31 Wittawat Kositwattanarerk

Ethereum smart contracts have recently drawn a considerable amount of attention from the media, the financial industry and academia. With the increase in popularity, malicious users found new opportunities to profit by deceiving newcomers.…

Cryptography and Security · Computer Science 2019-12-23 Ramiro Camino , Christof Ferreira Torres , Mathis Baden , Radu State

A honeypot is a type of security facility deliberately created to be probed, attacked and compromised. It is often used for protecting production systems by detecting and deflecting unauthorized accesses. It is also useful for investigating…

Cryptography and Security · Computer Science 2018-12-26 Wenjun Fan , Zhihui Du , David Fernandez , Victor A. Villagra

We investigate in this work a recently emerged type of scam ERC-20 token called Trapdoor, which has cost investors billions of US dollars on Uniswap, the largest decentralised exchange on Ethereum, from 2020 to 2023. In essence, Trapdoor…

Cryptography and Security · Computer Science 2024-12-20 Phuong Duy Huynh , Thisal De Silva , Son Hoang Dau , Xiaodong Li , Iqbal Gondal , Emanuele Viterbo

Uniswap is a Constant Product Market Maker built around liquidity pools, where pairs of tokens are exchanged subject to a fee that is proportional to the size of transactions. At the time of writing, there exist more than 6,000 pools…

Trading and Market Microstructure · Quantitative Finance 2023-02-01 Deborah Miori , Mihai Cucuringu

We identify the slow liquidity drain (SLID) scam, an insidious and highly profitable threat to decentralized finance (DeFi), posing a large-scale, persistent, and growing risk to the ecosystem. Unlike traditional scams such as rug pulls or…

Cryptography and Security · Computer Science 2025-08-07 Minh Trung Tran , Nasrin Sohrabi , Zahir Tari , Qin Wang , Minhui Xue , Xiaoyu Xia

Privacy-focused cryptocurrencies like Monero remain popular, despite increasing regulatory scrutiny that has led to their delisting from major centralized exchanges. The latter also explains the recent popularity of decentralized exchanges…

Cryptography and Security · Computer Science 2025-05-21 Yannik Kopyciok , Friedhelm Victor , Stefan Schmid

Decentralized exchanges, such as those employing constant product market makers (CPMMs) like Uniswap V2, play a crucial role in the blockchain ecosystem by enabling peer-to-peer token swaps without intermediaries. Despite the increasing…

Computational Finance · Quantitative Finance 2025-04-23 Yu Zhang , Yafei Li , Claudio Tessone

The rapid growth of Decentralized Finance (DeFi) boosts the Ethereum ecosystem. At the same time, attacks towards DeFi applications (apps) are increasing. However, to the best of our knowledge, existing smart contract vulnerability…

Cryptography and Security · Computer Science 2021-05-03 Siwei Wu , Dabao Wang , Jianting He , Yajin Zhou , Lei Wu , Xingliang Yuan , Qinming He , Kui Ren

The number of attacks and accidents leading to significant losses of crypto-assets is growing. According to Chainalysis, in 2021, approx. $14 billion has been lost due to various incidents, and this number is dominated by Decentralized…

Logic in Computer Science · Computer Science 2022-03-16 Eske Hoy Nielsen , Danil Annenkov , Bas Spitters

Ethereum contracts can be designed to function as fully decentralized applications called DAPPs. Many DAPPs have already been fielded, including an online marketplace, a role playing game, a prediction market, and an Internet service…

Cryptography and Security · Computer Science 2017-01-17 George Bissias , Brian Levine , Nikunj Kapadia

We explored the ubiquitous phenomenon of serial scammers, each of whom deployed dozens to thousands of addresses to conduct a series of similar Rug Pulls on popular decentralized exchanges. We first constructed two datasets of around…

Cryptography and Security · Computer Science 2025-02-11 Phuong Duy Huynh , Son Hoang Dau , Nicholas Huppert , Joshua Cervenjak , Hoonie Sun , Hong Yen Tran , Xiaodong Li , Emanuele Viterbo

In the field of network security, the concept of honeypots is well established in research as well as in production. Honeypots are used to imitate a legitimate target on the network and to raise an alert on any interaction. This does not…

Cryptography and Security · Computer Science 2021-04-09 Daniel Reti , Norman Becker

A honeypot, which is a kind of deception strategy, has been widely used for at least 20 years to mitigate cyber threats. Decision-makers have believed that honeypot strategies are intuitive and effective, since honeypots have successfully…

Cryptography and Security · Computer Science 2022-11-01 Suhyeon Lee , Kwangsoo Cho , Seungjoo Kim

SPEEDEX is a decentralized exchange (DEX) that lets participants securely trade assets without giving any single party undue control over the market. SPEEDEX offers several advantages over prior DEXes. It achieves high throughput -- over…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-03-06 Geoffrey Ramseyer , Ashish Goel , David Mazières

We present FairTraDEX, a decentralized exchange (DEX) protocol based on frequent batch auctions (FBAs), which provides formal game-theoretic guarantees against extractable value. FBAs when run by a trusted third-party provide unique…

Computer Science and Game Theory · Computer Science 2022-08-05 Conor McMenamin , Vanesa Daza , Matthias Fitzi , Padraic O'Donoghue