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Related papers: Perpetual Demand Lending Pools

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We study the problem of optimal portfolio selection in an illiquid market with discrete order flow. In this market, bids and offers are not available at any time but trading occurs more frequently near a terminal horizon. The investor can…

Portfolio Management · Quantitative Finance 2009-07-14 Paul Gassiat , Huyen Pham , Mihai Sirbu

In this paper, we present Velocity, a decentralized market deployed on Ethereum for trading a custom type of derivative option. To enable the smart contract to work, we also implement a price fetching tool called PriceGeth. We present this…

Cryptography and Security · Computer Science 2018-02-15 Shayan Eskandari , Jeremy Clark , Vignesh Sundaresan , Moe Adham

In this paper, we will consider a governance token pricing algorithm that conducts liquidity operations on AMM (CPMM) DEXs (automated market maker decentralized exchanges) with liquidity that belongs to a decentralized autonomous…

Cryptography and Security · Computer Science 2022-03-18 Aleksei Pupyshev , Ilya Sapranidi , Shamil Khalilov

We study permissionless spot--perpetual basis trading in decentralized finance as a collateral control problem. The strategy holds spot inventory, hedges directional exposure with a short perpetual, and allocates capital between spot…

Trading and Market Microstructure · Quantitative Finance 2026-05-07 Anatoly Krestenko , Mikhail Butov , Rostislav Berezovskiy , Danila Bolotin

Locational Marginal Price (LMP) is a dual variable associated with supply-demand matching and represents the cost of delivering power to a particular location if the load at that location increases. In recent times it become more volatile…

Optimization and Control · Mathematics 2018-11-07 Shantanu Chakraborty , Remco Verzijlbergh , Milos Cvetkovic , Kyri Baker , Zofia Lukszo

We investigate the problem of pricing and hedging derivatives of Electricity Futures contract when the underlying asset is not available. We propose to use a cross hedging strategy based on the Futures contract covering the larger delivery…

Pricing of Securities · Quantitative Finance 2014-02-03 Adrien Nguyen Huu , Nadia Oudjane

We consider a distributed cloud service deployed at a set of distinct server pools. Arriving jobs are classified into heterogeneous types, in accordance with their setup times which are differentiated at each of the pools. A dispatcher for…

Systems and Control · Electrical Eng. & Systems 2025-08-14 Fernando Paganini , Diego Goldsztajn

We address the liquidation problem arising from the credit risk management in decentralised finance (DeFi) by formulating it as an ergodic optimal control problem. In decentralised derivatives exchanges, liquidation is triggered whenever…

Trading and Market Microstructure · Quantitative Finance 2024-12-02 Jialun Cao , David Šiška

Model-based Systems Engineering (MBSE) has been widely utilized to formalize system artifacts and facilitate their development throughout the entire lifecycle. During complex system development, MBSE models need to be frequently exchanged…

Systems and Control · Electrical Eng. & Systems 2020-05-13 Jinzhi Lu , Xiaochen Zheng , Zhenchao Hu , Huisheng Zhang , Dimitris Kiritsis

Introduction of market mechanisms in distribution systems is currently subject to extensive studies. One of the challenges facing Distribution Market Operators (DMOs) is to implement a fair and economically efficient pricing mechanism that…

Systems and Control · Computer Science 2017-02-24 Sina Parhizi , Alireza Majzoobi , Amin Khodaei

A key motivation in the development of Distributed Model Predictive Control (DMPC) is to accelerate centralized Model Predictive Control (MPC) for large-scale systems. DMPC has the prospect of scaling well by parallelizing computations…

Optimization and Control · Mathematics 2025-04-16 Gösta Stomberg , Maurice Raetsch , Alexander Engelmann , Timm Faulwasser

The Maker Protocol is a decentralized finance application that enables collateralized lending. The application uses open-bid, second-price auctions to complete its loan liquidation process. In this paper, we develop a bidding function for…

Trading and Market Microstructure · Quantitative Finance 2021-05-27 Michael Darlin , Nikolaos Papadis , Leandros Tassiulas

Liquidation of collateral are the primary safeguard for solvency of lending protocols in decentralized finance. However, the mechanics of liquidations expose these protocols to predatory price manipulations and other forms of Maximal…

Mathematical Finance · Quantitative Finance 2026-02-13 Agathe Sadeghi , Zachary Feinstein

Automated market makers (AMMs) are a new type of trading venues which are revolutionising the way market participants interact. At present, the majority of AMMs are constant function market makers (CFMMs) where a deterministic trading…

Trading and Market Microstructure · Quantitative Finance 2024-07-25 Marcello Monga

Decentralized optimization over directed graphs is essential for applications such as robotic swarms, sensor networks, and distributed learning. In many practical scenarios, the underlying network takes the form of a Time-Varying Broadcast…

Optimization and Control · Mathematics 2026-02-24 Liyuan Liang , Yilong Song , Kun Yuan

Fluctuations in electricity tariffs induced by the sporadic nature of demand loads on power grids has initiated immense efforts to find optimal scheduling solutions for charging and discharging plug-in electric vehicles (PEVs) subject to…

Systems and Control · Computer Science 2020-04-28 Abbas Mehrabi , Aresh Dadlani , Seungpil Moon , Kiseon Kim

An effective distribution electricity market (DEM) is required to manage the rapidly growing small-scale distributed energy resources (DERs) in distribution systems (DSs). This paper proposes a day-ahead DEM clearing and pricing mechanism…

Systems and Control · Electrical Eng. & Systems 2021-10-15 Zongzheng Zhao , Yixin Liu , Li Guo , Linquan Bai , Chengshan Wang

In multi-hop secondary networks, bidding strategies for spectrum auction, route selection and relaying incentives should be jointly considered to establish multi-hop communication. In this paper, a framework for joint resource bidding and…

Computer Science and Game Theory · Computer Science 2016-11-17 Beatriz Lorenzo , Ivana Kovacevic , Ana Peleteiro , Francisco J. Gonzalez-Castano , Juan C. Burguillo

Geometric mean market makers (G3Ms), such as Uniswap and Balancer, comprise a popular class of automated market makers (AMMs) defined by the following rule: the reserves of the AMM before and after each trade must have the same (weighted)…

Mathematical Finance · Quantitative Finance 2020-07-16 Alex Evans

We consider multi-hop wireless networks serving multiple flows in which only packets that meet hard end-to-end deadline constraints are useful, i.e., if a packet is not delivered to its destination node by its deadline, it is dropped from…

Networking and Internet Architecture · Computer Science 2021-04-27 Rahul Singh , P. R. Kumar