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Related papers: Stablecoins: Fundamentals, Emerging Issues, and Op…

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Decentralized Finance (DeFi), in which digital assets are exchanged without trusted intermediaries, has grown rapidly in value in recent years. The global DeFi ecosystem is fragmented into multiple blockchains, fueling the demand for…

Cryptography and Security · Computer Science 2024-10-16 Daniël Reijsbergen , Bretislav Hajek , Tien Tuan Anh Dinh , Jussi Keppo , Henry F. Korth , Anwitaman Datta

In May 2022, an apparent speculative attack, followed by market panic, led to the precipitous downfall of UST, one of the most popular stablecoins at that time. However, UST is not the only stablecoin to have been depegged in the past.…

Computer Science and Game Theory · Computer Science 2023-07-26 Yujin Kwon , Kornrapat Pongmala , Kaihua Qin , Ariah Klages-Mundt , Philipp Jovanovic , Christine Parlour , Arthur Gervais , Dawn Song

Recently, the notion of cryptocurrencies has come to the fore of public interest. These assets that exist only in electronic form, with no underlying value, offer the owners some protection from tracking or seizure by government or…

Mathematical Finance · Quantitative Finance 2018-05-09 Carey Caginalp

This paper investigates systemic risk transmission across stablecoin markets using Quantile Vector Autoregression (QVAR). Analyzing eight major stablecoins with day data coverage from 2021 to 2025, supplemented by minute-level event studies…

General Economics · Economics 2026-02-24 Wenbin Wu , Can Liu

Stablecoins are digital assets designed to maintain a stable value, typically pegged to traditional currencies. Despite their growing prominence, many stablecoins have struggled to consistently meet stability expectations, and their…

Cryptography and Security · Computer Science 2025-05-07 Francesco De Sclavis , Giuseppe Galano , Aldo Glielmo , Matteo Nardelli

This paper delves into the spectrum of credit risks associated with decentralized stablecoin issuance, ranging from overcollateralized lending to business-to-business credit. It examines the mechanisms, risks, and mitigation strategies at…

Risk Management · Quantitative Finance 2024-11-22 Yuval Boneh , Ethan Jones

We develop a model of stable assets, including non-custodial stablecoins backed by cryptocurrencies. Such stablecoins are popular methods for bootstrapping price stability within public blockchain settings. We derive fundamental results…

Trading and Market Microstructure · Quantitative Finance 2023-03-31 Ariah Klages-Mundt , Andreea Minca

The cryptocurrency market surpassed the barrier of \$100 billion market capitalization in June 2017, after months of steady growth. Despite its increasing relevance in the financial world, however, a comprehensive analysis of the whole…

Stable coins are not very stable. Cash collateralized coins are more stable, but the overall failure rate is similar to tokens that are not designed to be stable. USD Coin, Tether and Dai have the largest Ethereum market shares, and they…

Trading and Market Microstructure · Quantitative Finance 2023-02-28 Bruce Mizrach

Stablecoins, which are primarily intended to function as a global reserve of value are insubstantial in their design and present many failure points. The primary mechanism to enable these coins to hold on to a fixed value is by backing them…

Computer Science and Game Theory · Computer Science 2024-09-01 Souradeep Das , Revathi Venkataraman

The Holy Grail of a decentralised stablecoin is achieved on rigorous mathematical frameworks, obtaining multiple advantageous proofs: stability, convergence, truthfulness, faithfulness, and malicious-security. These properties could only be…

Cryptography and Security · Computer Science 2019-09-18 David Cerezo Sánchez

We present positive evidence of price stability of cryptocurrencies as a medium of exchange. For the sample years from 2016 to 2020, the prices of major cryptocurrencies are found to be stable, relative to major financial assets.…

General Economics · Economics 2021-12-14 Tatsuru Kikuchi , Toranosuke Onishi , Kenichi Ueda

With the advancement of digital payment technologies, central banks worldwide have increasingly begun to explore the implementation of Central Bank Digital Currencies (CBDCs). This paper presents a comprehensive review of the latest…

General Economics · Economics 2025-07-15 Qifeng Tang , Yain-Whar Si

Crowdfunding platforms face high transaction fees, need for more transparency, and trust deficits. These issues deter contributors and entrepreneurs from effectively leveraging crowdfunding for innovation and growth. Blockchain technology…

Computational Engineering, Finance, and Science · Computer Science 2025-01-22 Mustafa Savas Unsal

Traditional blockchain systems, such as Ethereum, typically rely on a \emph{single volatile cryptocurrency for transaction fees}. This leads to fluctuating transaction fee prices and limits the flexibility of users' payment options. To…

Computational Engineering, Finance, and Science · Computer Science 2024-11-22 Mingzhe Li , Bo Gao , Kentaroh Toyoda , Yechao Yang , Juniarto Samsudin , Haibin Zhang , Sifei Lu , Tai Hou Tng , Kerching Choo , Andy Ting , Siow Mong Rick Goh , Qingsong Wei

We model incentive security in non-custodial stablecoins and derive conditions for participation in a stablecoin system across risk absorbers (vaults/CDPs) and holders of governance tokens. We apply option pricing theory to derive closed…

General Economics · Economics 2023-03-31 Lucy Huo , Ariah Klages-Mundt , Andreea Minca , Frederik Christian Münter , Mads Rude Wind

Blockchain is an emerging technology with potential to address issues related to sustainability. Literature reviews on blockchain and sustainability exist, but there is a need to consolidate existing results, in particular, in terms of…

Software Engineering · Computer Science 2021-04-01 Shanshan Jiang , Kine Jakobsen , Letizia Jaccheri , Jingyue Li

Blockchain, as the basis for cryptocurrencies, has received extensive attentions recently. Blockchain serves as an immutable distributed ledger technology which allows transactions to be carried out credibly in a decentralized environment.…

Cryptography and Security · Computer Science 2023-10-10 Min An , Qiyuan Fan , Hao Yu , Haiyang Zhao

Blockchain in supply chain management is expected to boom over the next five years. It is estimated that the global blockchain supply chain market would grow at a compound annual growth rate of 87% and increase from \$45 million in 2018 to…

Computers and Society · Computer Science 2019-01-10 Yanling Chang , Eleftherios Iakovou , Weidong Shi4

Crypto Currencies have recently gained enormous popularity amongst the general public. With each passing day, more and more companies are radically accepting crypto cur-rencies in their payment systems, paving way for an economic…

Cryptography and Security · Computer Science 2017-12-01 Sufian Hameed , Sameet Farooq