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Maximal Extractable Value (MEV) refers to excess value captured by miners (or validators) from users in a cryptocurrency network. This excess value often comes from reordering users' transactions to maximize fees or from inserting new…

Computer Science and Game Theory · Computer Science 2023-05-02 Kshitij Kulkarni , Theo Diamandis , Tarun Chitra

Users of decentralized finance (DeFi) applications face significant risks from adversarial actions that manipulate the order of transactions to extract value from users. Such actions -- an adversarial form of what is called…

Cryptography and Security · Computer Science 2024-08-06 Kushal Babel , Nerla Jean-Louis , Yan Ji , Ujval Misra , Mahimna Kelkar , Kosala Yapa Mudiyanselage , Andrew Miller , Ari Juels

A transaction fee mechanism (TFM) is an essential component of a blockchain protocol. However, a systematic evaluation of the real-world impact of TFMs is still absent. Using rich data from the Ethereum blockchain, the mempool, and…

General Economics · Economics 2025-08-11 Yulin Liu , Yuxuan Lu , Kartik Nayak , Fan Zhang , Luyao Zhang , Yinhong Zhao

We study a new "laminated" queueing model for orders on batched trading venues such as decentralised exchanges. The model aims to capture and generalise transaction queueing infrastructure that has arisen to organise MEV activity on public…

Trading and Market Microstructure · Quantitative Finance 2024-01-17 Andrew W. Macpherson

Demand for blockchains such as Bitcoin and Ethereum is far larger than supply, necessitating a mechanism that selects a subset of transactions to include "on-chain" from the pool of all pending transactions. This paper investigates the…

Cryptography and Security · Computer Science 2023-12-27 Tim Roughgarden

Ethereum's Gas mechanism attempts to set transaction fees in accordance with the computational cost of transaction execution: a cost borne by default by every node on the network to ensure correct smart contract execution. Gas encourages…

Cryptography and Security · Computer Science 2019-05-03 Renlord Yang , Toby Murray , Paul Rimba , Udaya Parampalli

Ethereum's upcoming Glamsterdam upgrade introduces EIP-7732 enshrined Proposer--Builder Separation (ePBS), which improves the block production pipeline by addressing trust and scalability challenges. Yet it also creates a new liveness risk:…

Computer Science and Game Theory · Computer Science 2026-01-09 Bruno Mazorra , Burak Öz , Christoph Schlegel , Fei Wu

Validators in permissionless, large-scale blockchains, such as Ethereum, are typically payoff-maximizing, rational actors. Ethereum relies on in-protocol incentives, like rewards for correct and timely votes, to induce honest behavior and…

Cryptography and Security · Computer Science 2025-05-06 Roozbeh Sarenche , Ertem Nusret Tas , Barnabe Monnot , Caspar Schwarz-Schilling , Bart Preneel

Blockchains, and specifically smart contracts, have promised to create fair and transparent trading ecosystems. Unfortunately, we show that this promise has not been met. We document and quantify the widespread and rising deployment of…

Cryptography and Security · Computer Science 2019-04-11 Philip Daian , Steven Goldfeder , Tyler Kell , Yunqi Li , Xueyuan Zhao , Iddo Bentov , Lorenz Breidenbach , Ari Juels

Blockchain systems, such as Ethereum, use an approach called "metering" to assign a cost to smart contract execution, an approach which is designed to incentivise miners to operate the network and protect it against DoS attacks. In the…

Cryptography and Security · Computer Science 2020-03-11 Daniel Perez , Benjamin Livshits

Ethereum's transaction pool (mempool) dynamics and fee market efficiency critically affect transaction inclusion, validator workload, and overall network performance. This research empirically analyzes gas price variations, mempool…

Cryptography and Security · Computer Science 2025-06-10 S M Mostaq Hossain , Amani Altarawneh

Two MEV builders now produce nearly 80\% of Ethereum blocks. Block builders have the ability to reorder transactions on the blockchain in a way that can be harmful to participants. We estimate they would pay in the aggregate nearly \$14…

Trading and Market Microstructure · Quantitative Finance 2026-05-20 Bruce Mizrach , Nathaniel Yoshida

Centralized stablecoins such as USDT and USDC enforce sanctions through contract-layer blacklist functions. Yet on public blockchains, a freeze is still an ordinary transaction competing with the sanctioned party's transfer for priority. It…

Cryptography and Security · Computer Science 2026-05-05 Di Wu , Yuman Bai , Shoupeng Ren , Xinyu Zhang , Yiyue Cao , Xuechao Wang , Wu Wen , Jian Liu

Censorship resistance with short-term inclusion guarantees is an important feature of decentralized systems, missing from many state-of-the-art and even deployed consensus protocols. In leader-based protocols the leader arbitrarily selects…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-08-19 Orestis Alpos , Bernardo David , Nikolas Kamarinakis , Dionysis Zindros

Modern blockchains increasingly adopt multi-proposer (MCP) consensus to remove single-leader bottlenecks and improve censorship resistance. However, MCP alone does not resolve how users should disseminate transactions to proposers. Today,…

Cryptography and Security · Computer Science 2025-12-30 Alejandro Ranchal-Pedrosa , Benjamin Marsh , Lefteris Kokoris-Kogias , Alberto Sonnino

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

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

We study the problem of providing blockchain applications with \emph{economically viable randomness} (EVR), namely, randomness that has significant economic consequences. Applications of EVR include blockchain-based lotteries and gambling.…

Cryptography and Security · Computer Science 2020-07-08 David Yakira , Avi Asayag , Ido Grayevsky , Idit Keidar

DeFi applications are vulnerable to MEV, where specialized actors profit by reordering or inserting transactions. To mitigate latency races and internalize MEV revenue, Arbitrum introduced Timeboost, an auction-based transaction sequencing…

Cryptography and Security · Computer Science 2025-09-29 Johnnatan Messias , Christof Ferreira Torres

The asset trading volume on blockchain-based exchanges (DEX) increased substantially since the advent of Automated Market Makers (AMM). Yet, AMMs and their forks compete on the same blockchain, incurring unnecessary network and block-space…

Cryptography and Security · Computer Science 2021-06-21 Liyi Zhou , Kaihua Qin , Arthur Gervais
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