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Decentralized finance (DeFi) has been the target of numerous profit-driven crimes, but the prevalence and cumulative impact of these crimes have not yet been assessed. This study provides a comprehensive assessment of profit-driven crimes…

Cryptography and Security · Computer Science 2025-01-23 Catherine Carpentier-Desjardins , Masarah Paquet-Clouston , Stefan Kitzler , Bernhard Haslhofer

The incentive-compatibility properties of blockchain transaction fee mechanisms have been investigated with *passive* block producers that are motivated purely by the net rewards earned at the consensus layer. This paper introduces a model…

Computer Science and Game Theory · Computer Science 2023-10-04 Maryam Bahrani , Pranav Garimidi , Tim Roughgarden

Total Value Locked (TVL) aims to measure the aggregate value of cryptoassets deposited in Decentralized Finance (DeFi) protocols. Although blockchain data is public, the way TVL is computed is not well understood. In practice, its…

General Finance · Quantitative Finance 2025-05-21 Pietro Saggese , Michael Fröwis , Stefan Kitzler , Bernhard Haslhofer , Raphael Auer

The rise of Web3 and Decentralized Finance (DeFi) has enabled borderless access to financial services empowered by smart contracts and blockchain technology. However, the ecosystem's trustless, permissionless, and borderless nature presents…

Cryptography and Security · Computer Science 2025-09-29 Hesam Sarkhosh , Uzma Maroof , Diogo Barradas

Transaction fee mechanism design is a new decentralized mechanism design problem where users bid for space on the blockchain. Several recent works showed that the transaction fee mechanism design fundamentally departs from classical…

Computer Science and Game Theory · Computer Science 2024-04-23 Ke Wu , Elaine Shi , Hao Chung

Credit exposure in Decentralized Finance (DeFi) is often implicit and token-mediated, creating a dense web of inter-protocol dependencies. Thus, a shock to one token may result in significant and uncontrolled contagion effects. As the DeFi…

Machine Learning · Computer Science 2026-02-05 Aijie Shu , Wenbin Wu , Gbenga Ibikunle , Fengxiang He

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

Edge computing brings computation near end users, enabling the provisioning of novel use cases. To satisfy end-user requirements, the concept of edge federation has recently emerged as a key mechanism for dynamic resources and services…

Networking and Internet Architecture · Computer Science 2025-09-30 Adam Zahir , Milan Groshev , Carlos J. Bernardos , Antonio de la Oliva

Ethereum and its standardized token interface have formed decentralized finance (DeFi), an open financial system based on blockchain smart contracts. The DeFi ecosystem has become richer with the introduction of DeFi composability projects,…

Computer Science and Game Theory · Computer Science 2022-12-05 HyoungSung Kim , Hyun-Sik Kim , Yong-Suk Park

This work explores the formation and propagation of systemic risks across traditional finance (TradFi) and decentralized finance (DeFi), offering a comparative framework that bridges these two increasingly interconnected ecosystems. We…

Risk Management · Quantitative Finance 2025-08-19 Sabrina Aufiero , Silvia Bartolucci , Fabio Caccioli , Pierpaolo Vivo

The exploitation of smart contract vulnerabilities in Decentralized Finance (DeFi) has resulted in financial losses exceeding 3 billion US dollars. Existing defense mechanisms primarily focus on detecting and reacting to adversarial…

Cryptography and Security · Computer Science 2025-04-22 Shoupeng Ren , Lipeng He , Tianyu Tu , Di Wu , Jian Liu , Kui Ren , Chun Chen

Peer-to-peer trading and the move to decentralized grids have reshaped the energy markets in the United States. Notwithstanding, such developments lead to new challenges, mainly regarding the safety and authenticity of energy trade. This…

We explore the adoption of graph representation learning (GRL) algorithms to investigate similarities across services offered by Decentralized Finance (DeFi) protocols. Following existing literature, we use Ethereum transaction data to…

Statistical Finance · Quantitative Finance 2024-04-25 Junliang Luo , Stefan Kitzler , Pietro Saggese

Opening up data produced by the Internet of Things (IoT) and mobile devices for public utilization can maximize their economic value. Challenges remain in the trustworthiness of the data sources and the security of the trading process,…

Cryptography and Security · Computer Science 2025-11-25 Yue Li , Ifteher Alom , Wenhai Sun , Yang Xiao

Many of the key enabling technologies of the fifth-generation (5G), such as network slicing, spectrum sharing, and federated learning, rely on a centralized authority. This may lead to pitfalls in terms of security or single point of…

Networking and Internet Architecture · Computer Science 2022-06-23 Shiva Kazemi Taskou , Mehdi Rasti , Pedro H. J. Nardelli

Decentralised organisations use blockchains as a basis for governance: they use on-chain transactions to allocate voting weight, publish proposals, cast votes, and enact the results. However, blockchain-based governance structures have…

Computer Science and Game Theory · Computer Science 2023-11-30 Thomas Lloyd , Daire O'Broin , Martin Harrigan

Financial fraud cases are on the rise even with the current technological advancements. Due to the lack of inter-organization synergy and because of privacy concerns, authentic financial transaction data is rarely available. On the other…

Billions of dollars are lost every year in DeFi platforms by transactions exploiting business logic or accounting vulnerabilities. Existing defenses focus on static code analysis, public mempool screening, attacker contract detection, or…

Cryptography and Security · Computer Science 2025-10-21 Abdulrahman Alhaidari , Balaji Palanisamy , Prashant Krishnamurthy

We study the amount of maximal extractable value (MEV) captured by validators, as a function of searcher competition, in blockchains with competitive block building markets such as Ethereum. We argue that the core is a suitable solution…

Computer Science and Game Theory · Computer Science 2025-10-01 Akaki Mamageishvili , Christoph Schlegel , Benny Sudakov , Danning Sui

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