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Decentralized Exchanges are becoming even more predominant in today's finance. Driven by the need to study this phenomenon from an academic perspective, the SIAG/FME Code Quest 2023 was announced. Specifically, participating teams were…

Portfolio Management · Quantitative Finance 2024-06-13 Daniele Maria Di Nosse , Federico Gatta

In recent years, the Decentralized Finance (DeFi) market has witnessed numerous attacks on the price oracle, leading to substantial economic losses. Despite the advent of truth discovery methods opening up new avenues for oracle…

Computer Science and Game Theory · Computer Science 2024-02-23 Youquan Xian , Peng Liu , Dongcheng Li , Xueying Zeng

As one of the most popular blockchain platforms supporting smart contracts, Ethereum has caught the interest of both investors and criminals. Differently from traditional financial scenarios, executing Know Your Customer verification on…

Social and Information Networks · Computer Science 2023-01-03 Dan Lin , Jiajing Wu , Qishuang Fu , Zibin Zheng , Ting Chen

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

Synthetic assets are decentralized finance (DeFi) analogues of derivatives in the traditional finance (TradFi) world - financial arrangements which derive value from and are directly pegged to fluctuations in the value of an underlying…

General Finance · Quantitative Finance 2022-09-22 Abrar Rahman , Victor Shi , Matthew Ding , Elliot Choi

Despite the tremendous advances achieved over the past years by deep learning techniques, the latest risk prediction models for industrial applications still rely on highly handtuned stage-wised statistical learning tools, such as gradient…

Machine Learning · Computer Science 2023-08-08 Yancheng Liang , Jiajie Zhang , Hui Li , Xiaochen Liu , Yi Hu , Yong Wu , Jinyao Zhang , Yongyan Liu , Yi Wu

We introduce the Clockwork Finance Framework (CFF), a general purpose, formal verification framework for mechanized reasoning about the economic security properties of composed decentralized-finance (DeFi) smart contracts. CFF features…

Cryptography and Security · Computer Science 2023-05-22 Kushal Babel , Philip Daian , Mahimna Kelkar , Ari Juels

Asset custody is a core financial service in which the custodian holds in-safekeeping assets on behalf of the client. Although traditional custody service is typically endorsed by centralized authorities, decentralized custody scheme has…

Cryptography and Security · Computer Science 2021-07-14 Zhaohua Chen , Guang Yang

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

Many classical blockchains are known to have an embarrassingly low transaction throughput, down to Bitcoin's notorious seven transactions per second limit.Various proposals and implementations for increasing throughput emerged in the first…

Cryptography and Security · Computer Science 2023-03-08 Lioba Heimbach , Quentin Kniep , Yann Vonlanthen , Roger Wattenhofer

Decentralized finance introduces new business models and use cases as part of digital finance. Restaking has recently emerged as a transformative mechanism in DeFi, promising extra yields but introducing complex and interconnected risks.…

General Finance · Quantitative Finance 2026-04-17 Hasret Ozan Sevim , Christof Ferreira Torres

Compound Finance is a decentralized lending protocol that enables the secure and efficient borrowing and lending of cryptocurrencies, utilizing smart contracts and dynamic interest rates based on supply and demand to facilitate…

Risk Management · Quantitative Finance 2024-10-08 Rik Ghosh , Samrat Gupta , Arka Datta , Abhimanyu Nag , Sudipan Sinha

Decentralized applications (dApps) in Decentralized Finance (DeFi) face a fundamental tension between regulatory compliance requirements like Know Your Customer (KYC) and maintaining decentralization and privacy. Existing permissioned DeFi…

Cryptography and Security · Computer Science 2025-10-08 Fabian Piper , Karl Wolf , Jonathan Heiss

Decentralized trust management is used as a referral benchmark for assisting decision making by human or intelligence machines in open collaborative systems. During any given period of time, each participant may only interact with a few of…

Social and Information Networks · Computer Science 2019-09-26 Xinxin Fan , Ling Liu , Rui Zhang , Quanliang Jing , Jingping Bi

Three traits of decentralized finance are studied. First, the market impact function is derived for optimal-growth liquidity providers. For a standard random walk, the classic square-root impact is recovered. An extension is then derived to…

Portfolio Management · Quantitative Finance 2026-01-19 B. K. Meister

We develop a mathematical framework to optimize leveraged staking ("loopy") strategies in Decentralized Finance (DeFi), in which a staked asset is supplied as collateral, the underlying is borrowed and re-staked, and the loop can be…

Mathematical Finance · Quantitative Finance 2026-01-21 Bastien Baude , Vincent Danos , Hamza El Khalloufi

In the context of blockchain systems, the importance of decentralization is undermined by the lack of a widely accepted methodology to measure it. To address this gap, we set out a systematization effort targeting the decentralization…

Cryptography and Security · Computer Science 2025-02-07 Christina Ovezik , Dimitris Karakostas , Mary Milad , Aggelos Kiayias , Daniel W. Woods

We provide an overview of decentralized protocols like Compound and Aave that offer collateralized loans for cryptoasset investors. Compound and Aave are two of the most important application in the decentralized finance (DeFi) ecosystem.…

General Finance · Quantitative Finance 2021-08-02 Carlos Castro-Iragorri , Julian Ramirez , Sebastian Velez

In an increasingly digitalized commerce landscape, the proliferation of credit card fraud and the evolution of sophisticated fraudulent techniques have led to substantial financial losses. Automating credit card fraud detection is a viable…

Machine Learning · Computer Science 2023-09-27 Zaffar Zaffar , Fahad Sohrab , Juho Kanniainen , Moncef Gabbouj

Student retention is one of the rising problems seen in educational institutions. With the rising cost of education and issues in the education sector, such as curriculum relevance, student engagement, and rapidly changing technological…

Computers and Society · Computer Science 2025-10-21 Abrar Mahbub , Humira Saria , Md. Foysal Hossain , Nafees Mansoor