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Decentralized finance (DeFi) lacks centralized oversight, often resulting in heightened volatility. In contrast, centralized finance (CeFi) offers a more stable environment with institutional safeguards. Institutional backing can play a…

Computational Finance · Quantitative Finance 2025-12-23 Ihlas Sovbetov

The rise of Decentralized Finance ("DeFi") on the Ethereum blockchain has enabled the creation of lending platforms, which serve as marketplaces to lend and borrow digital currencies. We first categorize the activity of lending platforms…

Trading and Market Microstructure · Quantitative Finance 2022-06-08 Michael Darlin , Georgios Palaiokrassas , Leandros Tassiulas

Decentralized exchanges (DEXs) are a cornerstone of decentralized finance (DeFi), allowing users to trade cryptocurrencies without the need for third-party authorization. Investors are incentivized to deposit assets into liquidity pools,…

Artificial Intelligence · Computer Science 2023-09-20 Haochen Zhang , Xi Chen , Lin F. Yang

Decentralized exchanges (DEXs) are crucial to decentralized finance (DeFi) as they enable trading without intermediaries. However, they face challenges like impermanent loss (IL), where liquidity providers (LPs) see their assets' value…

Computer Science and Game Theory · Computer Science 2026-03-04 Irina Lebedeva , Dmitrii Umnov , Yury Yanovich , Ignat Melnikov , George Ovchinnikov

Flash Loan attack can grab millions of dollars from decentralized vaults in one single transaction, drawing increasing attention from the Decentralized Finance (DeFi) players. It has also demonstrated an exciting opportunity that a huge…

Computational Finance · Quantitative Finance 2021-02-02 Yixin Cao , Chuanwei Zou , Xianfeng Cheng

Prompt injection attacks, where untrusted data contains an injected prompt to manipulate the system, have been listed as the top security threat to LLM-integrated applications. Model-level prompt injection defenses have shown strong…

Cryptography and Security · Computer Science 2026-02-09 Sizhe Chen , Arman Zharmagambetov , David Wagner , Chuan Guo

Large language models (LLMs) are becoming increasingly prevalent in modern software systems, interfacing between the user and the Internet to assist with tasks that require advanced language understanding. To accomplish these tasks, the LLM…

Cryptography and Security · Computer Science 2025-07-04 Sizhe Chen , Arman Zharmagambetov , Saeed Mahloujifar , Kamalika Chaudhuri , David Wagner , Chuan Guo

In recent days, the proliferation of several existing and new cyber-attacks pose an axiomatic threat to the stability of financial services. It is hard to predict the nature of attacks that can trigger a serious financial crisis. The…

Cryptography and Security · Computer Science 2023-03-24 Pushpita Chatterjee , Debashis Das , Danda B Rawat

Smart contracts are frequently vulnerable to control-flow attacks based on confused deputies, reentrancy, and incorrect error handling. These attacks exploit the complexity of interactions among multiple possibly unknown contracts. Existing…

Cryptography and Security · Computer Science 2025-04-24 Siqiu Yao , Haobin Ni , Stephanie Ma , Noah Schiff , Andrew C. Myers , Ethan Cecchetti

Financial markets are undergoing an unprecedented transformation. Technological advances have brought major improvements to the operations of financial services. While these advances promote improved accessibility and convenience,…

Trading and Market Microstructure · Quantitative Finance 2023-12-05 Agostino Capponi , Garud Iyengar , Jay Sethuraman

With the improvements in computing technologies, edge devices in the Internet-of-Things have become more complex. The enabler technology for these complex systems are powerful application core processors with operating system support, such…

Cryptography and Security · Computer Science 2023-01-13 Robert Schilling , Pascal Nasahl , Martin Unterguggenberger , Stefan Mangard

With the rapid development of blockchain technology in recent years, all kinds of blockchain-based applications have emerged. Among them, the decentralized finance (DeFi) is one of the most successful applications, which is regarded as the…

Cryptography and Security · Computer Science 2022-01-10 Yinjie Zhao , Xin Kang , Tieyan Li , Cheng-Kang Chu , Haiguang Wang

Lending pools are decentralized applications which allow mutually untrusted users to lend and borrow crypto-assets. These applications feature complex, highly parametric incentive mechanisms to equilibrate the loan market. This complexity…

Cryptography and Security · Computer Science 2020-12-25 Massimo Bartoletti , James Hsin-yu Chiang , Alberto Lluch-Lafuente

Decentralized finance (DeFi) in Ethereum is a financial ecosystem built on the blockchain that has locked over 200 billion USD until April 2022. All transaction information is transparent and open when transacting through the DeFi protocol,…

Cryptography and Security · Computer Science 2022-05-20 Wenkai Li , Jiuyang Bu , Xiaoqi Li , Xianyi Chen

Physical Unclonable Functions (PUFs) serve as lightweight, hardware-intrinsic entropy sources widely deployed in IoT security applications. However, delay-based PUFs are vulnerable to Machine Learning Attacks (MLAs), undermining their…

Cryptography and Security · Computer Science 2026-01-09 Hongming Fei , Zilong Hu , Prosanta Gope , Biplab Sikdar

Speculative execution attacks undermine the security of constant-time programming, the standard technique used to prevent microarchitectural side channels in security-sensitive software such as cryptographic code. Constant-time code must…

Cryptography and Security · Computer Science 2023-12-18 Rutvik Choudhary , Alan Wang , Zirui Neil Zhao , Adam Morrison , Christopher W. Fletcher

Decentralized Finance (DeFi) is a new financial industry built on blockchain technologies. Decentralized financial services have consequently increased the ability to lend, borrow, and invest in decentralized investment vehicles, allowing…

Portfolio Management · Quantitative Finance 2022-09-27 Hugo Inzirillo , Stanislas de Quenetain

Thanks to the widespread deployment of TLS, users can access private data over channels with end-to-end confidentiality and integrity. What they cannot do, however, is prove to third parties the {\em provenance} of such data, i.e., that it…

Cryptography and Security · Computer Science 2024-08-06 Fan Zhang , Sai Krishna Deepak Maram , Harjasleen Malvai , Steven Goldfeder , Ari Juels

Decentralized applications are often composed of multiple interconnected smart contracts. This is especially evident in DeFi, where protocols are heavily intertwined and rely on a variety of basic building blocks such as tokens,…

Cryptography and Security · Computer Science 2025-05-27 Emily Priyadarshini , Massimo Bartoletti

Much of the recent excitement around decentralized finance (DeFi) comes from hopes that DeFi can be a secure, private, less centralized alternative to traditional finance systems. However, people moving to DeFi sites in hopes of improving…

Cryptography and Security · Computer Science 2023-02-07 Philipp Winter , Anna Harbluk Lorimer , Peter Snyder , Benjamin Livshits