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We study an auction with $m$ identical items in a context where $n$ agents can arbitrarily commit to strategies. In general, such commitments non-trivially change the equilibria by inducing a metagame of choosing which strategies to commit…

Computer Science and Game Theory · Computer Science 2023-05-04 Daji Landis , Nikolaj I. Schwartzbach

Execution Tickets are currently discussed as a next evolutionary step in Ethereum's block space allocation mechanism, separating consensus rewards from execution rewards and selling execution rights through a dedicated market. We present a…

Computer Science and Game Theory · Computer Science 2025-01-28 Pascal Stichler

Maximal Extractable Value (MEV) represents billions of dollars in extracted value that fundamentally shapes blockchain network dynamics and participant incentives. While research has focused on MEV extraction and mitigation, we lack…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-05-01 Andrei Seoev , Dmitry Belousov , Anastasiia Smirnova , Ksenia Kurinova , Aleksei Smirnov , Denis Fedyanin , Yury Yanovich

This paper presents a multi-contract blockchain framework for inter-provider agreements in 6G networks, emphasizing performance analysis under a realistic Proof-of-Stake (PoS) setting on Ethereum's Sepolia testnet. We begin by quantifying…

Networking and Internet Architecture · Computer Science 2025-04-02 Farhana Javed , Josep Mangues-Bafalluy

Permissionless blockchains such as Bitcoin have excelled at financial services. Yet, opportunistic traders extract monetary value from the mesh of decentralized finance (DeFi) smart contracts through so-called blockchain extractable value…

Cryptography and Security · Computer Science 2021-12-13 Kaihua Qin , Liyi Zhou , Arthur Gervais

Maximal Extractable Value (MEV) searching has gained prominence on the Ethereum blockchain since the surge in Decentralized Finance activities. In Ethereum, MEV extraction primarily hinges on fee payments to block proposers. However, in…

Cryptography and Security · Computer Science 2024-01-17 Burak Öz , Jonas Gebele , Parshant Singh , Filip Rezabek , Florian Matthes

On high-throughput, low-fee blockchains, a qualitatively new form of maximal extractable value (MEV) has emerged: searchers submit large volumes of speculative transactions, whose profitability is resolved only at execution time. We refer…

Computer Science and Game Theory · Computer Science 2026-04-02 Wenhao Wang , Aditya Saraf , Lioba Heimbach , Kushal Babel , Fan Zhang

Blockchain validators can reduce block processing time by exploiting multi-core CPUs, but deterministic execution must preserve a given total order while respecting transaction conflicts and per-block runtime limits. This paper…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-02-04 Arivarasan Karmegam , Lucianna Kiffer , Antonio Fernández Anta

Milionis et al.(2023) studied the rate at which automated market makers leak value to arbitrageurs when block times are discrete and follow a Poisson process, and where the risky asset price follows a geometric Brownian motion. We extend…

Trading and Market Microstructure · Quantitative Finance 2024-07-30 Ciamac C. Moallemi , Dan Robinson

Supply chain integration remains an elusive goal for the construction and engineering industry. The high degree of fragmentation and the reliance on third-party financial institutions has pushed the physical and financial supply chains…

Cryptography and Security · Computer Science 2020-12-04 Hesam Hamledari , Martin Fischer

On 15th September 2022, The Merge marked the Ethereum network's transition from computation-hardness-based consensus (proof-of-work) to a committee-based consensus mechanism (proof-of-stake). As a result, all the specialized hardware and…

Computational Engineering, Finance, and Science · Computer Science 2023-10-03 Lucianna Kiffer , Sophia Skorik , Yann Vonlanthen , Roger Wattenhofer

Maximal Extractable Value (MEV) has emerged as a new frontier in the design of blockchain systems. In this paper, we propose making the MEV extraction rate as part of the protocol design space. Our aim is to leverage this parameter to…

Computer Science and Game Theory · Computer Science 2024-10-02 Pedro Braga , Georgios Chionas , Piotr Krysta , Stefanos Leonardos , Georgios Piliouras , Carmine Ventre

Lending protocols in decentralized finance enable the permissionless exchange of capital from lenders to borrowers without relying on a trusted third party for clearing or market-making. Interest rates are set by the supply and demand of…

General Finance · Quantitative Finance 2023-08-17 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer

Maximal Extractable Value (MEV) is value extractable by temporary monopoly power commonly found in decentralized systems. This extraction stems from a lack of user privacy upon transaction submission and the ability of a monopolist…

Computer Science and Game Theory · Computer Science 2023-09-26 Tarun Chitra

In order to have transactions executed and recorded on blockchains such as the Ethereum Mainnet, fees expressed in crypto-currency units of the blockchain must be paid. One can buy crypto-currency called Ether of the Ethereum blockchain…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-08-20 Serdar Metin , Can Özturan

Financial speculators often seek to increase their potential gains with leverage. Debt is a popular form of leverage, and with over 39.88B USD of total value locked (TVL), the Decentralized Finance (DeFi) lending markets are thriving.…

General Finance · Quantitative Finance 2021-10-04 Kaihua Qin , Liyi Zhou , Pablo Gamito , Philipp Jovanovic , Arthur Gervais

This paper examines the economic and security implications of Proof-of-Stake (POS) designs, providing a survey of POS design choices and their underlying economic principles in prominent POS-blockchains. The paper argues that…

General Economics · Economics 2024-05-24 Nicolas Oderbolz , Beatrix Marosvölgyi , Matthias Hafner

Transaction fees represent a major incentive in many blockchain systems as a way to incentivize processing transactions. Unfortunately, they also introduce an enormous amount of incentive asymmetry compared to alternatives like fixed block…

Computer Science and Game Theory · Computer Science 2023-02-15 Michael Tang , Alex Zhang

Blockchains revolutionized centralized sectors like banking and finance by promoting decentralization and transparency. In a blockchain, information is transmitted through transactions issued by participants or applications. Miners…

Cryptography and Security · Computer Science 2024-05-30 Johnnatan Messias Peixoto Afonso

We study Arbitrum's Timeboost mechanism following the adoption of Kairos by its main users -- Wintermute and Selini Capital -- to understand how the emergence of a just-in-time secondary market affects the dynamics of an ahead-of-time…

Computer Science and Game Theory · Computer Science 2026-04-01 Burak Öz , Christoph Schlegel , Akaki Mamageishvili