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Related papers: DeFi's Concentrated Liquidity From Scratch

200 papers

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

We investigate the behavior of liquidity providers (LPs) by modeling a decentralized cryptocurrency exchange (DEX) based on Uniswap v3. LPs with heterogeneous characteristics choose optimal liquidity positions subject to uncertainty…

Trading and Market Microstructure · Quantitative Finance 2024-04-16 Erhan Bayraktar , Asaf Cohen , April Nellis

This paper develops a rigorous mathematical framework for analyzing Concentrated Liquidity Market Makers (CLMMs) in Decentralized Finance (DeFi) within a continuous-time setting. We model the evolution of liquidity profiles as…

Mathematical Finance · Quantitative Finance 2024-12-25 Shen-Ning Tung , Tai-Ho Wang

Decentralized finance (DeFi) protocols now intermediate over USD 100 billion in value, including regulated stablecoins and tokenized assets deployed as collateral, yet no widely adopted framework operationalizes risk assessment at the rigor…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-05-07 Eva Oberholzer , Valeriy Zamaraiev

Decentralized Autonomous Organizations (DAOs) have emerged as a novel governance mechanism in blockchain ecosystems, particularly within Decentralized Finance (DeFi). By enabling token holders to propose and vote on protocol changes, these…

Cryptography and Security · Computer Science 2025-07-22 Johnnatan Messias , Vabuk Pahari , Balakrishnan Chandrasekaran , Krishna P. Gummadi , Patrick Loiseau

A decentralized federated learning architecture is proposed to apply to the Businesses-to-Businesses scenarios by introducing the consortium blockchain in this paper. We introduce a model verification mechanism to ensure the quality of…

Machine Learning · Statistics 2021-05-11 Pengcheng Ren , Tongjiang Yan

This empirical study presents the Decentralized Exchanges Comparison Service (DECS), a novel tool developed by 1inch Analytics to assess exchange efficiency in decentralized finance. The DECS utilizes swap transaction monitoring and…

Trading and Market Microstructure · Quantitative Finance 2024-11-05 Evgenii Onishchuk , Maksim Dubovitskii , Eduard Horch

Cryptocurrency can be understood as a digital asset transacted among participants in the crypto economy. Every cryptocurrency must have an associated Blockchain. Blockchain is a Distributed Ledger Technology (DLT) which supports…

Computers and Society · Computer Science 2024-05-20 Carlos Alberto Durigan Junior , Fernando Jose Barbin Laurindo

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

Liquid staking has become the largest category of decentralized finance protocols in terms of total value locked. However, few studies exist on its implementation designs or underlying risks. The liquid staking protocols allow for earning…

Cryptography and Security · Computer Science 2024-01-30 Krzysztof Gogol , Benjamin Kraner , Malte Schlosser , Tao Yan , Claudio Tessone , Burkhard Stiller

Decentralized Finance (DeFi) has reshaped the possibilities of reserve banking in the form of the Collateralized Debt Position (CDP). Key to the safety of CDPs is the money supply architecture that enables issued debt to maintain its value.…

Risk Management · Quantitative Finance 2024-07-19 Yuval Boneh

Catalyzed by the popularity of blockchain technology, there has recently been a renewed interest in the design, implementation and evaluation of decentralized systems. Most of these systems are intended to be deployed at scale and in…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-01-12 Martijn de Vos , Georgy Ishmaev , Johan Pouwelse , Stefanie Roos

Fraud across the decentralized finance (DeFi) ecosystem is growing, with victims losing billions to DeFi scams every year. However, there is a disconnect between the reported value of these scams and associated legal prosecutions. We use…

Cryptography and Security · Computer Science 2023-05-29 Arianna Trozze , Toby Davies , Bennett Kleinberg

Physics-based models have been mainstream in fluid dynamics for developing predictive models. In recent years, machine learning has offered a renaissance to the fluid community due to the rapid developments in data science, processing…

Machine Learning · Computer Science 2024-06-12 Omer San , Suraj Pawar , Adil Rasheed

Decentralized techniques are becoming crucial and ubiquitous with the rapid advancement of distributed ledger technologies such as the blockchain. Numerous decentralized systems have been developed to address security and privacy issues…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-08-20 Yepeng Ding , Hiroyuki Sato

Decentralized Finance (DeFi) is a nascent set of financial services, using tokens, smart contracts, and blockchain technology as financial instruments. We investigate four possible drivers of DeFi returns: exposure to cryptocurrency market,…

Computational Finance · Quantitative Finance 2024-03-07 Florentina Şoiman , Guillaume Dumas , Sonia Jimenez-Garces

Distributed AI and IoT applications increasingly execute across heterogeneous resources spanning end devices, edge/fog infrastructure, and cloud platforms, often under different administrative domains. Fluid Computing has emerged as a…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-03-13 Diego Cajaraville-Aboy , Ana Fernández-Vilas , Rebeca P. Díaz-Redondo , Manuel Fernández-Veiga , Pablo Picallo-López

Since the inception of permissionless blockchains with Bitcoin in 2008, it became apparent that their most well-suited use case is related to making the financial system and its advantages available to everyone seamlessly without depending…

General Finance · Quantitative Finance 2023-06-16 Georgios Palaiokrassas , Sandro Scherrers , Iason Ofeidis , Leandros Tassiulas

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

Decentralization has been touted as the principal security advantage which propelled blockchain systems at the forefront of developments in the financial technology space. Its exact semantics nevertheless remain highly contested and…

Cryptography and Security · Computer Science 2024-04-16 Christina Ovezik , Dimitris Karakostas , Aggelos Kiayias