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Blockchain systems come with the promise of being inclusive for a variety of decentralized applications (DApps) that can serve different purposes and have different urgency requirements. Despite this, the transaction fee mechanisms…

Computer Science and Game Theory · Computer Science 2023-04-13 Aggelos Kiayias , Elias Koutsoupias , Philip Lazos , Giorgos Panagiotakos

We present the first formal treatment of \emph{yield tokenization}, a mechanism that decomposes yield-bearing assets into principal and yield components to facilitate risk transfer and price discovery in decentralized finance (DeFi). We…

Theoretical Economics · Economics 2025-08-07 Viraj Nadkarni , Pramod Viswanath

In this paper, we study decentralized decision-making where agents optimize private objectives under incomplete information and imperfect public monitoring, in a non-cooperative setting. By shaping utilities-embedding shadow prices or…

Computer Science and Game Theory · Computer Science 2025-10-31 David Smith , Jie Dong , Yizhou Yang

We introduce a decentralized mechanism for pricing and exchanging alternatives constrained by transaction costs. We characterize the time-invariant solutions of a heat equation involving a (weighted) Tarski Laplacian operator, defined for…

Computer Science and Game Theory · Computer Science 2023-09-14 Hans Riess , Michael Munger , Michael M. Zavlanos

Decentralized Finance (DeFi) services are moving traditional financial operations to the Internet of Value (IOV) by exploiting smart contracts, distributed ledgers, and clever heterogeneous transactions among different protocols. The…

General Economics · Economics 2023-07-18 Teng Andrea Xu , Jiahua Xu

The transaction ordering dependency of the smart contracts building decentralized exchanges (DEXes) allow for predatory trading strategies. In particular, front-running attacks present a constant risk for traders on DEXes. Whereas legal…

Computer Science and Game Theory · Computer Science 2024-09-09 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer

We study risk-sharing economies where heterogenous agents trade subject to quadratic transaction costs. The corresponding equilibrium asset prices and trading strategies are characterised by a system of nonlinear, fully-coupled…

Portfolio Management · Quantitative Finance 2020-10-01 Martin Herdegen , Johannes Muhle-Karbe , Dylan Possamaï

This paper presents a comprehensive statistical analysis of the Web3 ecosystem, comparing various Web3 tokens with traditional financial assets across multiple time scales. We examine probability distributions, tail behaviors, and other key…

Statistical Finance · Quantitative Finance 2024-12-09 Wei-Ru Chen , A. Christian Silva , Shen-Ning Tung

In recent years, there is an emerging trend that some computing services are moving from cloud to the edge of the networks. Compared to cloud computing, edge computing can provide services with faster response, lower expense, and more…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-06-30 Jinyue Song , Tianbo Gu , Yunjie Ge , Prasant Mohapatra

Decentralized resource markets are Web 3.0 applications that build open-access platforms for trading digital resources among users without any central management. They promise cost reduction, transparency, and flexible service provision.…

Cryptography and Security · Computer Science 2025-09-25 Mohamed E. Najd , Ghada Almashaqbeh

INTRODUCTION: The proliferation of the amalgamation of IoT and edge computing has increased the demand for decentralised trust and security mechanisms capable of operating across heterogeneous and resource-limited devices. Approaches such…

Cryptography and Security · Computer Science 2026-04-21 Khandoker Ashik Uz Zaman , Mahdi H. Miraz , Mohammed N. M. Ali

We describe a new public-domain open-source simulator of an electronic financial exchange, and of the traders that interact with the exchange, which is a truly distributed and cloud-native system that been designed to run on widely…

Computers and Society · Computer Science 2019-10-01 Bradley Miles , Dave Cliff

The immense success of ML systems relies heavily on large-scale, high-quality data. The high demand for data has led to many paradigms that involve selling, exchanging, and sharing data, motivating the study of economic processes with data…

Computer Science and Game Theory · Computer Science 2024-12-04 Hannaneh Akrami , Bhaskar Ray Chaudhury , Jugal Garg , Aniket Murhekar

Before a fair exchange takes place, there is typically an advertisement phase with the goal of increasing the appeal of possessing a digital asset while keeping it sufficiently hidden. Advertisement phases are implicit in mainstream…

Cryptography and Security · Computer Science 2025-09-15 Pierpaolo Della Monica , Ivan Visconti , Andrea Vitaletti , Marco Zecchini

We present a measurement study on compositions of Decentralized Finance protocols, which aim to disrupt traditional finance and offer services on top of distributed ledgers, such as Ethereum. DeFi compositions may impact the development of…

Cryptography and Security · Computer Science 2022-10-03 Stefan Kitzler , Friedhelm Victor , Pietro Saggese , Bernhard Haslhofer

Decentralized finance revolutionizes traditional financial systems by leveraging blockchain technology to reduce trust. However, some vulnerabilities persist, notably front-running by malicious actors who exploit transaction information to…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-03-18 Christian Cachin , Jovana Micic

We extend the QLBS model by reformulating via considering a large trader whose transactions leave a permanent impact on the evolution of the exchange rate process and therefore affect the price of contingent claims on such processes.…

Mathematical Finance · Quantitative Finance 2023-11-14 Ahmet Umur Özsoy , Ömür Uğur

Decentralized applications developed using blockchain technology provide innovative business models to serve the human race and solve existing challenges. Climate change is one of the biggest problems humanity is facing and there is a…

Computational Engineering, Finance, and Science · Computer Science 2022-03-18 Nida Khan , Tabrez Ahmad

This paper introduces peer to peer (P2P) trading mechanisms based on decentralized Blockchain to facilitate retail electricity market for ever-increasing distributed energy resources (DERs). The Blockchain network supports fast and secure…

Systems and Control · Electrical Eng. & Systems 2024-03-12 Masoud H. Nazari , Antar Kumar Biswas

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
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