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Much of the recent excitement around decentralized finance (DeFi) comes from hopes that DeFi can be a secure, private, less centralized alternative to traditional finance systems. However, people moving to DeFi sites in hopes of improving…

Cryptography and Security · Computer Science 2023-02-07 Philipp Winter , Anna Harbluk Lorimer , Peter Snyder , Benjamin Livshits

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 financial (DeFi) applications on the Ethereum blockchain are highly interoperable because they share a single state in a deterministic computational environment. Stakeholders can deposit claims on assets, referred to as…

Computers and Society · Computer Science 2021-11-30 Victor von Wachter , Johannes Rude Jensen , Omri Ross

In this work, we introduce the private, anonymous, collateralizable commitments (PACCs) framework. PACCs allow any smart contract wallet holder to collateralize a claim, request, or commitment in general, in a private and anonymous manner.…

Cryptography and Security · Computer Science 2024-03-25 Conor McMenamin , Vanesa Daza , Xavier Salleras

Ethereum's scalability limitations pose significant challenges for the adoption of decentralized applications (dApps). Zero-Knowledge Rollups (ZK Rollups) present a promising solution, bundling transactions off-chain and submitting validity…

Cryptography and Security · Computer Science 2025-06-03 Krzysztof Gogol , Szczepan Gurgul , Faizan Nehal Siddiqui , David Branes , Claudio Tessone

Blockchain applications that rely on the Proof-of-Work (PoW) have increasingly become energy inefficient with a staggering carbon footprint. In contrast, energy-efficient alternative consensus protocols such as Proof-of-Stake (PoS) may…

Cryptography and Security · Computer Science 2021-01-05 Muhammad Saad , Zhan Qin , Kui Ren , DaeHun Nyang , David Mohaisen

Ethereum 2.0, as the preeminent smart contract blockchain platform, guarantees the precise execution of applications without third-party intervention. At its core, this system leverages the Proof-of-Stake (PoS) consensus mechanism, which…

General Economics · Economics 2025-08-11 Tao Yan , Shengnan Li , Benjamin Kraner , Luyao Zhang , Claudio J. Tessone

This work introduces a framework for evaluating onchain order flow auctions (OFAs), emphasizing the metric of price improvement. Utilizing a set of open-source tools, our methodology systematically attributes price improvements to specific…

Trading and Market Microstructure · Quantitative Finance 2024-05-27 Brad Bachu , Xin Wan , Ciamac C. Moallemi

Maximal extractable value (MEV) in which block proposers unethically gain profits by manipulating the order in which transactions are included within a block, is a key challenge facing blockchains such as Ethereum today. Left unchecked, MEV…

Cryptography and Security · Computer Science 2024-05-16 Yifan Mao , Mengya Zhang , Shaileshh Bojja Venkatakrishnan , Zhiqiang Lin

The decentralized and trustless nature of cryptocurrencies and blockchain technology leads to a shift in the digital world. The possibility to execute small programs, called smart contracts, on cryptocurrencies like Ethereum opened doors to…

Cryptography and Security · Computer Science 2021-01-15 Hendrik Amler , Lisa Eckey , Sebastian Faust , Marcel Kaiser , Philipp Sandner , Benjamin Schlosser

In the context of decentralized blockchains, accurately simulating the outcome of order flow auctions (OFAs) off-chain is challenging due to adversarial sequencing, encrypted bids, and frequent state changes. Existing approaches, such as…

Computer Science and Game Theory · Computer Science 2025-03-12 Alex Watts , Davide Sinesi , Jacob Greene

The rise of Decentralized Finance ("DeFi") on the Ethereum blockchain has enabled the creation of lending platforms, which serve as marketplaces to lend and borrow digital currencies. We first categorize the activity of lending platforms…

Trading and Market Microstructure · Quantitative Finance 2022-06-08 Michael Darlin , Georgios Palaiokrassas , Leandros Tassiulas

Decentralized Finance (DeFi) is a system of financial products and services built and delivered through smart contracts on various blockchains. In the past year, DeFi has gained popularity and market capitalization. However, it has also…

Machine Learning · Computer Science 2023-05-29 Arianna Trozze , Bennett Kleinberg , Toby Davies

We provide an economic model of Execution Tickets and use it to study the ability of the Ethereum protocol to capture MEV from block construction. We demonstrate that Execution Tickets extract all MEV when all buyers are homogeneous, risk…

Computer Science and Game Theory · Computer Science 2024-08-22 Jonah Burian , Davide Crapis , Fahad Saleh

Ethereum is undergoing significant changes to its architecture as it evolves. These changes include its switch to PoS consensus and the introduction of significant infrastructural changes that do not require a change to the core protocol,…

Theoretical Economics · Economics 2023-12-25 Simon Brown

Decentralised Finance (DeFi) applications constitute an entire financial ecosystem deployed on blockchains. Such applications are based on complex protocols and incentive mechanisms whose financial safety is hard to determine. Besides,…

Software Engineering · Computer Science 2022-09-19 Massimo Bartoletti , James Chiang , Tommi Junttila , Alberto Lluch Lafuente , Massimiliano Mirelli , Andrea Vandin

Recently, two attacks were presented against Proof-of-Stake (PoS) Ethereum: one where short-range reorganizations of the underlying consensus chain are used to increase individual validators' profits and delay consensus decisions, and one…

Cryptography and Security · Computer Science 2021-10-20 Caspar Schwarz-Schilling , Joachim Neu , Barnabé Monnot , Aditya Asgaonkar , Ertem Nusret Tas , David Tse

As of August 2022, blockchain-based assets boast a combined market capitalisation exceeding one trillion USD, among which the most prominent are the decentralised autonomous organisation (DAO) tokens associated with decentralised finance…

General Economics · Economics 2025-05-08 Teng Andrea Xu , Jiahua Xu , Kristof Lommers

Current blockchain protocols (e.g., Proof-of-Work and Proof-of-Stake) secure the ledger yet cannot measure validator trustworthiness, allowing subtle misconduct that is especially damaging in decentralized-finance (DeFi) settings. We…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-06-30 Ailiya Borjigin , Wei Zhou , Cong He

With the rapid development of blockchain technology in recent years, all kinds of blockchain-based applications have emerged. Among them, the decentralized finance (DeFi) is one of the most successful applications, which is regarded as the…

Cryptography and Security · Computer Science 2022-01-10 Yinjie Zhao , Xin Kang , Tieyan Li , Cheng-Kang Chu , Haiguang Wang