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From viral jokes to a billion-dollar phenomenon, meme coins have become one of the most popular segments in cryptocurrency markets. Unlike utility-focused crypto assets like Bitcoin, meme coins derive value primarily from community…

Trading and Market Microstructure · Quantitative Finance 2026-01-05 Alberto Maria Mongardini , Alessandro Mei

In light of micro-scale inefficiencies induced by the high degree of fragmentation of the Bitcoin trading landscape, we utilize a granular data set comprised of orderbook and trades data from the most liquid Bitcoin markets, in order to…

Trading and Market Microstructure · Quantitative Finance 2021-08-24 Jakob Albers , Mihai Cucuringu , Sam Howison , Alexander Y. Shestopaloff

Constant product markets with concentrated liquidity (CL) are the most popular type of automated market makers. In this paper, we characterise the continuous-time wealth dynamics of strategic LPs who dynamically adjust their range of…

Mathematical Finance · Quantitative Finance 2024-06-14 Álvaro Cartea , Fayçal Drissi , Marcello Monga

Prediction markets are markets for trading claims on future events, such as presidential elections, and their prices provide continuously updated signals of collective beliefs. In decentralized platforms such as Polymarket, the market…

Machine Learning · Computer Science 2026-04-23 Huaiyu Jia , Luofeng Zhou , Wentao Zhang , Lin William Cong , Siguang Li , Shuo Sun

April 2026 saw notable methodological convergence in the academic study of informed trading on decentralized prediction markets. Three approaches surfaced almost simultaneously: Mitts and Ofir (2026) apply a composite screen to over 210,000…

Trading and Market Microstructure · Quantitative Finance 2026-05-15 Maksym Nechepurenko

With the increasing integration of power plants into the frequency-regulation markets, the importance of optimal trading has grown substantially. This paper conducts an in-depth analysis of their optimal trading behavior in sequential…

Systems and Control · Electrical Eng. & Systems 2023-10-30 Saeed Nordin , Abolfazl Khodadadi , Priyanka Shinde , Evelin Blom , Mohammad Reza Hesamzadeh , Lennart Söder

Cryptocurrencies have emerged as a novel financial asset garnering significant attention in recent years. A defining characteristic of these digital currencies is their pronounced short-term market volatility, primarily influenced by…

Computational Finance · Quantitative Finance 2024-01-02 Vahidin Jeleskovic , Stephen Mackay

Evolutions of the trading landscape lead to the capability to exchange the same financial instrument on different venues. Because of liquidity issues, the trading firms split large orders across several trading destinations to optimize…

Trading and Market Microstructure · Quantitative Finance 2010-07-28 Sophie Laruelle , Charles-Albert Lehalle , Gilles Pagès

The problem of investing into a cryptocurrency market requires good understanding of the processes that regulate the price of the currency. In this paper we offer a view of a cryptocurrency market as an environment for realization of a…

Trading and Market Microstructure · Quantitative Finance 2022-10-18 Misha Perepelitsa

We study the problem of the intraday short-term volume forecasting in cryptocurrency exchange markets. The predictions are built by using transaction and order book data from different markets where the exchange takes place.…

Trading and Market Microstructure · Quantitative Finance 2020-12-03 Nino Antulov-Fantulin , Tian Guo , Fabrizio Lillo

Layer-2 (L2) blockchains inherit Ethereums security guarantees while reducing gas fees. As a result, they are gaining traction among traders at Automated Market Makers (AMMs), sparking debate over whether they contribute to liquidity…

Computational Engineering, Finance, and Science · Computer Science 2025-03-14 Krzysztof Gogol , Manvir Schneider , Claudio Tessone , Benjamin Livshits

As cryptocurrencies gain popularity and credibility, marketplaces for cryptocurrencies are growing in importance. Understanding the dynamics of these markets can help to assess how viable the cryptocurrnency ecosystem is and how design…

Computers and Society · Computer Science 2018-04-25 Peter M Krafft , Nicolás Della Penna , Alex Pentland

Autodeleveraging (ADL) is a last-resort loss socialization mechanism for perpetual futures venues. It is triggered when solvency-preserving liquidations fail. Despite the dominance of perpetual futures in the crypto derivatives market, with…

Computer Science and Game Theory · Computer Science 2026-02-18 Tarun Chitra

This article comes up with an intraday trading strategy under T+1 using Markowitz optimization and Multilayer Perceptron (MLP) with published stock data obtained from the Shenzhen Stock Exchange and Shanghai Stock Exchange. The empirical…

Trading and Market Microstructure · Quantitative Finance 2021-03-26 Q. Wang , Y. Zhou , J. Shen

Order placement tactics play a crucial role in high-frequency trading algorithms and their design is based on understanding the dynamics of the order book. Using high quality high-frequency data and a set of microstructural features, we…

Trading and Market Microstructure · Quantitative Finance 2024-09-30 Timothée Fabre , Vincent Ragel

The growing reliance on prediction markets as epistemic infrastructures has positioned platforms like Polymarket as providers of objective, real-time probabilistic truth, yet the signals they produce often obscure uncertainty, strategic…

Computers and Society · Computer Science 2026-02-06 Yasaman Rohanifar , Syed Ishtiaque Ahmed , Sharifa Sultana

Despite the fact that cryptocurrencies themselves have experienced an astonishing rate of adoption over the last decade, cryptocurrency fraud detection is a heavily under-researched problem area. Of all fraudulent activity regarding…

Machine Learning · Computer Science 2022-05-11 Viswanath Chadalapaka , Kyle Chang , Gireesh Mahajan , Anuj Vasil

The availability of data on digital traces is growing to unprecedented sizes, but inferring actionable knowledge from large-scale data is far from being trivial. This is especially important for computational finance, where digital traces…

Social and Information Networks · Computer Science 2016-05-13 David Garcia , Frank Schweitzer

Prediction markets cannot exist without market makers, arbitrageurs, and other non-retail liquidity providers, yet the supply-side microstructure of Polymarket-class venues has not been characterized at on-chain pseudonymous-address scale.…

Trading and Market Microstructure · Quantitative Finance 2026-05-13 Maksym Nechepurenko

We consider a central trading desk which aggregates the inflow of clients' orders with unobserved toxicity, i.e. persistent adverse directionality. The desk chooses either to internalise the inflow or externalise it to the market in a cost…

Trading and Market Microstructure · Quantitative Finance 2024-07-08 Alexander Barzykin , Robert Boyce , Eyal Neuman