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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

Digital payment systems have revolutionized financial transactions, offering unparalleled convenience and accessibility to users worldwide. However, the increasing popularity of these platforms has also attracted malicious actors seeking to…

This paper compares mathematical models for automated market makers including logarithmic market scoring rule (LMSR), liquidity sensitive LMSR (LS-LMSR), constant product/mean/sum, and others. It is shown that though LMSR may not be a good…

Trading and Market Microstructure · Quantitative Finance 2024-05-21 Yongge Wang

Flash Loan attack can grab millions of dollars from decentralized vaults in one single transaction, drawing increasing attention from the Decentralized Finance (DeFi) players. It has also demonstrated an exciting opportunity that a huge…

Computational Finance · Quantitative Finance 2021-02-02 Yixin Cao , Chuanwei Zou , Xianfeng Cheng

Automated Market Makers (AMMs), as a core infrastructure of decentralized finance (DeFi), uniquely drive on-chain asset pricing through a deterministic reserve ratio mechanism. Unlike traditional markets, AMM price dynamics is triggered…

Machine Learning · Computer Science 2026-04-23 Huaiyu Jia , Jiehshun You , Yizhi Luo , Jingyu Liu , Shuo Sun

Total value locked (TVL) is widely used to measure the size and popularity of decentralized finance (DeFi). However, TVL can be easily manipulated and inflated through "double counting" activities such as wrapping and leveraging. As…

General Finance · Quantitative Finance 2025-07-08 Yichen Luo , Yebo Feng , Jiahua Xu , Paolo Tasca

DEX, or decentralized exchange, is a prominent class of decentralized finance (DeFi) applications on blockchains, attracting a total locked value worth tens of billions of USD today. This paper presents the first large-scale empirical study…

Cryptography and Security · Computer Science 2024-01-23 Jiaqi Chen , Yibo Wang , Yuxuan Zhou , Wanning Ding , Yuzhe Tang , XiaoFeng Wang , Kai Li

Blockchain adoption has surged with the rise of Decentralized Finance (DeFi) applications. However, the significant value of digital assets managed by DeFi protocols makes them prime targets for attacks. Current smart contract vulnerability…

Cryptography and Security · Computer Science 2024-11-21 Hongbo Wen , Hanzhi Liu , Jiaxin Song , Yanju Chen , Wenbo Guo , Yu Feng

Decentralized Finance (DeFi) leverages blockchain-enabled smart contracts to deliver automated and trustless financial services without the need for intermediaries. However, the public visibility of financial transactions on the blockchain…

Cryptography and Security · Computer Science 2025-10-20 Huned Materwala , Shraddha M. Naik , Aya Taha , Tala Abdulrahman Abed , Davor Svetinovic

Smart contract vulnerabilities caused significant economic losses in blockchain applications. Large Language Models (LLMs) provide new possibilities for addressing this time-consuming task. However, state-of-the-art LLM-based detection…

Cryptography and Security · Computer Science 2025-01-14 ZeKe Xiao , Qin Wang , Hammond Pearce , Shiping Chen

Phishing attacks in Web3 ecosystems are increasingly sophisticated, exploiting deceptive contract logic, malicious frontend scripts, and token approval patterns. We present DeepTx, a real-time transaction analysis system that detects such…

Cryptography and Security · Computer Science 2025-10-27 Yixuan Liu , Xinlei Li , Yi Li

Fine-tuning the large language models (LLMs) are prevented by the deficiency of centralized control and the massive computing and communication overhead on the decentralized schemes. While the typical standard federated learning (FL)…

Machine Learning · Computer Science 2025-08-28 Zehua Cheng , Rui Sun , Jiahao Sun , Yike Guo

Decentralized finance, i.e., DeFi, has become the most popular type of application on many public blockchains (e.g., Ethereum) in recent years. Compared to the traditional finance, DeFi allows customers to flexibly participate in diverse…

Cryptography and Security · Computer Science 2021-03-05 Bin Wang , Han Liu , Chao Liu , Zhiqiang Yang , Qian Ren , Huixuan Zheng , Hong Lei

Security issues are becoming increasingly significant with the rapid evolution of Non-fungible Tokens (NFTs). As NFTs are traded as digital assets, they have emerged as prime targets for cyber attackers. In the development of NFT smart…

Cryptography and Security · Computer Science 2026-01-16 Yuanzheng Niu , Xiaoqi Li , Wenkai Li

Smart contracts on blockchains are prone to diverse security vulnerabilities that can lead to significant financial losses due to their immutable nature. Existing detection approaches often lack flexibility across vulnerability types and…

Cryptography and Security · Computer Science 2026-05-06 Xing Zhang , Keyu Zhang , Taohong Zhu , Anbang Ruan

Decentralized Finance (DeFi) refers to financial services that are not necessarily related to crypto-currencies. By employing blockchain for security and integrity, DeFi creates new possibilities that attract retail and institution users,…

Cryptography and Security · Computer Science 2024-04-18 Krzysztof Gogol , Christian Killer , Malte Schlosser , Thomas Bocek , Burkhard Stiller , Claudio Tessone

Decentralized Finance (DeFi) applications introduce novel financial instruments replicating and extending traditional ones through blockchain-based smart contracts. Among these applications, DeFi derivatives protocols enable the creation…

Computer Science and Game Theory · Computer Science 2026-05-05 Luca Pennella , Pietro Saggese , Fabio Pinelli , Letterio Galletta

The deployment of Large Language Models (LLMs) for code debugging (e.g., C and Python) is widespread, benefiting from their ability to understand and interpret intricate concepts. However, in the semiconductor industry, utilising LLMs to…

Hardware Architecture · Computer Science 2024-05-14 Ke Xu , Jialin Sun , Yuchen Hu , Xinwei Fang , Weiwei Shan , Xi Wang , Zhe Jiang

There has been a growing interest in using Large Language Models (LLMs) for code review thanks to their proven proficiency in code comprehension. The primary objective of most review scenarios is to generate desired review comments (DRCs)…

Software Engineering · Computer Science 2025-01-07 Yongda Yu , Lei Zhang , Guoping Rong , Haifeng Shen , Jiahao Zhang , Haoxiang Yan , Guohao Shi , Dong Shao , Ruiqi Pan , Yuan Li , Qiushi Wang , Zhao Tian

As an integral part of the decentralized finance (DeFi) ecosystem, decentralized exchanges (DEXs) with automated market maker (AMM) protocols have gained massive traction with the recently revived interest in blockchain and distributed…

Trading and Market Microstructure · Quantitative Finance 2023-03-16 Jiahua Xu , Krzysztof Paruch , Simon Cousaert , Yebo Feng