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Blockchain technology has revolutionized financial markets by enabling decentralized exchanges (DEXs) that operate without intermediaries. Uniswap V2, a leading DEX, facilitates the rapid creation and trading of new tokens, which offer high…

Computational Finance · Quantitative Finance 2026-02-18 Manuel Naviglio , Francesco Tarantelli , Fabrizio Lillo

In recent years, blockchain technology has introduced decentralized finance (DeFi) as an alternative to traditional financial systems. DeFi aims to create a transparent and efficient financial ecosystem using smart contracts and emerging…

Computational Engineering, Finance, and Science · Computer Science 2024-03-14 Bingqiao Luo , Zhen Zhang , Qian Wang , Anli Ke , Shengliang Lu , Bingsheng He

DeFi, or Decentralized Finance, is based on a distributed ledger called blockchain technology. Using blockchain, DeFi may customize the execution of predetermined operations between parties. The DeFi system use blockchain technology to…

Cryptography and Security · Computer Science 2023-04-27 Wenkai Li , Jiuyang Bu , Xiaoqi Li , Hongli Peng , Yuanzheng Niu , Yuqing Zhang

In blockchain networks, the strategic ordering of transactions within blocks has emerged as a significant source of profit extraction, known as Maximal Extractable Value (MEV). The transition from spam-based Priority Gas Auctions to…

Permissionless blockchains offer an information environment where users can interact privately without fear of censorship. Financial services can be programmatically coded via smart contracts to automate transactions without the need for…

General Finance · Quantitative Finance 2022-12-13 Kanis Saengchote

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

We provide an economic model of Execution Tickets and use it to study the ability of the Ethereum protocol to capture MEV from block construction. We demonstrate that Execution Tickets extract all MEV when all buyers are homogeneous, risk…

Computer Science and Game Theory · Computer Science 2024-08-22 Jonah Burian , Davide Crapis , Fahad Saleh

DeFi (Decentralized Finance) is one of the most important applications of today's cryptocurrencies and smart contracts. It manages hundreds of billions in Total Value Locked (TVL) on-chain, yet it remains susceptible to common DeFi price…

Cryptography and Security · Computer Science 2025-10-28 Juantao Zhong , Daoyuan Wu , Ye Liu , Maoyi Xie , Yang Liu , Yi Li , Ning Liu

The Ethereum blockchain network is a decentralized platform enabling smart contract execution and transactions of Ether (ETH) [1], its designated cryptocurrency. Ethereum is the second most popular cryptocurrency with a market cap of more…

Social and Information Networks · Computer Science 2018-10-04 Morit Zwang , Shahar Somin , Alex 'Sandy' Pentland , Yaniv Altshuler

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

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

Decentralized finance (DeFi) has become one of the most successful applications of blockchain and smart contracts. The DeFi ecosystem enables a wide range of crypto-financial activities, while the underlying smart contracts often contain…

Cryptography and Security · Computer Science 2021-04-20 Palina Tolmach , Yi Li , Shang-Wei Lin , Yang Liu

Decentralized Finance (DeFi) smart contracts manage billions of dollars, making them a prime target for exploits. Price manipulation vulnerabilities, often via flash loans, are a devastating class of attacks causing significant financial…

Cryptography and Security · Computer Science 2026-04-30 Lu Liu , Wuqi Zhang , Lili Wei , Hao Guan , Yongqiang Tian , Yepang Liu , Shing-Chi Cheung

The decentralized finance (DeFi) community has grown rapidly in recent years, pushed forward by cryptocurrency enthusiasts interested in the vast untapped potential of new markets. The surge in popularity of cryptocurrency has ushered in a…

Computational Engineering, Finance, and Science · Computer Science 2025-12-12 Adriana Watson , Grant Richards , Daniel Schiff

Decentralized Finance (DeFi) is a prominent application of smart contracts, representing a novel financial paradigm in contrast to centralized finance. While DeFi applications are rapidly emerging on mainstream blockchain platforms, their…

Software Engineering · Computer Science 2024-01-12 Wei Ma , Chenguang Zhu , Ye Liu , Xiaofei Xie , Yi Li

The introduction of smart contract functionality marks the advent of the blockchain 2.0 era, enabling blockchain technology to support digital currency transactions and complex distributed applications. However, many smart contracts have…

Cryptography and Security · Computer Science 2026-01-16 Hongli Peng , Xiaoqi Li , Wenkai Li

In e-commerce industry, user behavior sequence data has been widely used in many business units such as search and merchandising to improve their products. However, it is rarely used in financial services not only due to its 3V…

Machine Learning · Computer Science 2021-01-13 Wei Min , Weiming Liang , Hang Yin , Zhurong Wang , Mei Li , Alok Lal

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

Decentralized Finance (DeFi) took shape in 2020. An unprecedented amount of over 14 billion USD moved into DeFi projects offering trading, loans and insurance. But its growth has also drawn the attention of malicious actors. Many projects…

Cryptography and Security · Computer Science 2021-06-22 Kris Oosthoek

Decentralized finance (DeFi) is revolutionizing the traditional centralized finance paradigm with its attractive features such as high availability, transparency, and tamper-proofing. However, attacks targeting DeFi services have severely…

Software Engineering · Computer Science 2024-04-17 Yepeng Ding , Arthur Gervais , Roger Wattenhofer , Hiroyuki Sato
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