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Decentralized Finance (DeFi) has revolutionized lending by replacing intermediaries with algorithm-driven liquidity pools. However, existing platforms like Aave and Compound rely on static interest rate curves and collateral requirements…

Social and Information Networks · Computer Science 2025-04-29 Mahsa Bastankhah , Viraj Nadkarni , Xuechao Wang , Pramod Viswanath

The emerging cryptocurrency market has lately received great attention for asset allocation due to its decentralization uniqueness. However, its volatility and brand new trading mode have made it challenging to devising an acceptable…

Machine Learning · Computer Science 2021-10-19 Fengrui Liu , Yang Li , Baitong Li , Jiaxin Li , Huiyang Xie

We propose a mean field game model to study the question of how centralization of reward and computational power occur in Bitcoin-like cryptocurrencies. Miners compete against each other for mining rewards by increasing their computational…

Optimization and Control · Mathematics 2022-01-25 Zongxi Li , A. Max Reppen , Ronnie Sircar

The rapid growth of crypto markets has opened new opportunities for investors, but at the same time exposed them to high volatility. To address the challenge of managing dynamic portfolios in such an environment, this paper presents a…

Portfolio Management · Quantitative Finance 2025-07-29 Antonino Castelli , Paolo Giudici , Alessandro Piergallini

This work presents a new framework for Privacy-Preserving Investment systems in a distributed model. In this model, independent investors can transfer funds to independent projects, in the same way as it works on crowdfunding platforms. The…

Cryptography and Security · Computer Science 2017-06-14 Filipp Valovich

Traditional blockchain design gives miners or validators full control over transaction ordering, i.e., they can freely choose which transactions to include or exclude, as well as in which order. While not an issue initially, the emergence…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-12-19 Andrei Constantinescu , Diana Ghinea , Lioba Heimbach , Zilin Wang , Roger Wattenhofer

This paper investigates whether Bitcoin can be regarded as a decentralized autonomous organization (DAO), what insights it may offer for the broader DAO ecosystem, and how Bitcoin governance can be improved. First, a quantitative literature…

Computers and Society · Computer Science 2025-04-30 Mark C. Ballandies , Guangyao Li , Claudio J. Tessone

We propose a game-theoretic model of the reliability of decentralised systems based on Varian's model of system reliability, to which we add a new normalised total effort case that models \textit{decentralisation conscious players} who…

Computer Science and Game Theory · Computer Science 2022-04-27 Sarah Azouvi , Alexander Hicks

In Internet of Vehicles (IoV), data sharing among vehicles is essential to improve driving safety and enhance vehicular services. To ensure data sharing security and traceability, highefficiency Delegated Proof-of-Stake consensus scheme as…

Cryptography and Security · Computer Science 2018-09-25 Jiawen Kang , Zehui Xiong , Dusit Niyato , Dongdong Ye , Dong In Kim , Jun Zhao

This paper surveys the emerging science of how to design a ``COllective INtelligence'' (COIN). A COIN is a large multi-agent system where: (i) There is little to no centralized communication or control; and (ii) There is a provided world…

Machine Learning · Computer Science 2007-05-23 David H. Wolpert , Kagan Tumer

Effective risk management solutions become absolutely crucial when financial markets embrace distributed technology and decentralized financing (DeFi). This study offers a thorough survey and comparative analysis of the integration of…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-03-25 Akaash Vishal Hazarika , Mahak Shah , Swapnil Patil , Pradyumna Shukla

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

This paper fundamentally reformulates economic and financial theory to include electronic currencies. The valuation of the electronic currencies will be based on macroeconomic theory and the fundamental equation of monetary policy, not the…

Theoretical Economics · Economics 2025-07-15 Michael E. Glinsky , Sharon Sievert

Dynamically distributed inflation is a common mechanism used to guide a blockchain's staking rate towards a desired equilibrium between network security and token liquidity. However, the high sensitivity of the annual percentage yield to…

Cryptography and Security · Computer Science 2025-10-14 Carlo Brunetta , Amit Chaudhary , Stefano Galatolo , Massimiliano Sala

Self-interested behavior in sharing economies often leads to inefficient aggregate outcomes compared to a centrally coordinated allocation, ultimately harming users. Yet, centralized coordination removes individual decision power. This…

Computer Science and Game Theory · Computer Science 2026-03-20 Leonardo Pedroso , Andrea Agazzi , W. P. M. H. Heemels , Mauro Salazar

Decentralized Finance (DeFi) is a rapidly evolving segment of blockchain technology that enables a transformative approach to financial services through Web3 applications. By leveraging smart contracts, DeFi allows developers to build…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-05-01 Ignat Melnikov , Roman Vlasov , Vladimir Gorgadze , Andrey Seoev , Yury Yanovich

Distributed consensus mechanisms have been widely researched and made popular with a number of blockchain-based token applications, such as Bitcoin, and Ethereum. Although these general-purpose platforms have matured for scale and security,…

Cryptography and Security · Computer Science 2020-04-28 Steven Platt , Miquel Oliver-Riera

The convergence of blockchain and artificial intelligence (AI) has led to the emergence of AI-based tokens, which are cryptographic assets designed to power decentralized AI platforms and services. This paper provides a comprehensive review…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-08-12 Rischan Mafrur

Stablecoins have emerged as a rapidly growing digital payment instrument, raising the question of whether blockchain-based settlement can function as a substitute for incumbent card networks in retail payments. This Systematization of…

General Finance · Quantitative Finance 2026-01-05 Yuquan Li , Yuexin Xiang , Qin Wang , Tsz Hon Yuen , Andreas Deppeler , Jiangshan Yu

The popularity of cryptocurrencies has grown significantly in recent years, and they have become an important asset for internet trading. One of the main drawbacks of cryptocurrencies is the high volatility and fluctuation in value. The…

Cryptography and Security · Computer Science 2023-03-06 Wantall Newby , Nickuk Nishikawa