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The asset trading volume on blockchain-based exchanges (DEX) increased substantially since the advent of Automated Market Makers (AMM). Yet, AMMs and their forks compete on the same blockchain, incurring unnecessary network and block-space…

Cryptography and Security · Computer Science 2021-06-21 Liyi Zhou , Kaihua Qin , Arthur Gervais

Liquidity providers (LPs) on decentralized exchanges (DEXs) can protect themselves from adverse selection risk by updating their positions more frequently. However, repositioning is costly, because LPs have to pay gas fees for each update.…

Trading and Market Microstructure · Quantitative Finance 2024-03-20 Basile Caparros , Amit Chaudhary , Olga Klein

Decentralized exchanges (DEXes) have evolved dramatically since the introduction of Automated Market Makers (AMMs). In recent years, solver-based protocols have emerged as an alternative venue aiming to introduce competition for routing,…

Computational Engineering, Finance, and Science · Computer Science 2025-05-08 Yuki Yuminaga , Dex Chen , Danning Sui

This paper studies the market structure impact of cheaper and faster chains on the Uniswap v3 Protocol. The Uniswap Protocol is the largest decentralized application on Ethereum by both gas and blockspace used, and user behaviors of the…

Trading and Market Microstructure · Quantitative Finance 2024-03-18 Austin Adams

In blockchains such as Bitcoin and Ethereum, transactions represent the primary mechanism that the external world can use to trigger a change of blockchain state. Transactions serve as key sources of evidence and play a vital role in…

Cryptography and Security · Computer Science 2024-05-15 Chao Li , Balaji Palanisamy

Ethereum clients execute transactions in a sequential order prescribed by the consensus protocol. This is a safe and conservative approach to blockchain transaction processing which forgoes running transactions in parallel even when doing…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-01-31 Nadi Sarrar

Currently, Gasper, the implemented consensus protocol of Ethereum, takes between 64 and 95 slots to finalize blocks. Because of that, a significant portion of the chain is susceptible to reorgs. The possibility to capture MEV (Maximum…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-08-16 Francesco D'Amato , Luca Zanolini

Compact block, which replaces transactions in the block with their hashes, is an effective means to speed up block propagation in the Bitcoin network. The compact block mechanism in Bitcoin counts on the fact that many nodes may already…

Networking and Internet Architecture · Computer Science 2022-12-29 Chonghe Zhao , Taotao Wang , Shengli Zhang , Soung Chang Liew

We study a new "laminated" queueing model for orders on batched trading venues such as decentralised exchanges. The model aims to capture and generalise transaction queueing infrastructure that has arisen to organise MEV activity on public…

Trading and Market Microstructure · Quantitative Finance 2024-01-17 Andrew W. Macpherson

Despite the success in various scenarios, blockchain systems, especially EVM-compatible ones that serially execute transactions, still face the significant challenge of limited throughput. Concurrent transaction execution is a promising…

Distributed, Parallel, and Cluster Computing · Computer Science 2022-11-18 Haoran Lin , Yajin Zhou , Lei Wu

Optimistic rollups rely on fraud proofs -- interactive protocols executed on Ethereum to resolve conflicting claims about the rollup's state -- to scale Ethereum securely. To mitigate against potential censorship of protocol moves, fraud…

Computer Science and Game Theory · Computer Science 2025-02-28 Ben Berger , Edward W. Felten , Akaki Mamageishvili , Benny Sudakov

Consensus protocols are currently the bottlenecks that prevent blockchain systems from scaling. However, we argue that transaction execution is also important to the performance and security of blockchains. In other words, there are ample…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-07-15 Daniël Reijsbergen , Tien Tuan Anh Dinh

Ethereum's Gas mechanism attempts to set transaction fees in accordance with the computational cost of transaction execution: a cost borne by default by every node on the network to ensure correct smart contract execution. Gas encourages…

Cryptography and Security · Computer Science 2019-05-03 Renlord Yang , Toby Murray , Paul Rimba , Udaya Parampalli

While Ethereum has successfully achieved dynamic availability together with safety, a fundamental delay remains between transaction execution and immutable finality. In Ethereum's current Gasper protocol, this latency is on the order of 15…

Cryptography and Security · Computer Science 2026-01-14 Yash Saraswat , Abhimanyu Nag

DeFi applications are vulnerable to MEV, where specialized actors profit by reordering or inserting transactions. To mitigate latency races and internalize MEV revenue, Arbitrum introduced Timeboost, an auction-based transaction sequencing…

Cryptography and Security · Computer Science 2025-09-29 Johnnatan Messias , Christof Ferreira Torres

We analyze 15,097 blocks proposed for inclusion in Ethereum's blockchain over an eight-minute window on December 3, 2024, during which 38 blocks were added to the chain. We classify transactions as exclusive -- appearing only in blocks from…

Cryptography and Security · Computer Science 2025-11-17 Vabuk Pahari , Andrea Canidio

Ethereum is a permissionless blockchain ecosystem that supports execution of smart contracts, the key enablers of decentralized finance (DeFi) and non-fungible tokens (NFT). However, the expressiveness of Ethereum smart contracts is a…

Cryptography and Security · Computer Science 2023-01-24 Nikolay Ivanov , Qiben Yan , Anurag Kompalli

Automated Market Maker (AMM)-based Decentralized Exchanges (DEXs) are crucial in Decentralized Finance (DeFi), but Ethereum implementations suffer from high transaction costs and price synchronization challenges. To address these…

Computational Engineering, Finance, and Science · Computer Science 2025-08-28 Walter Hernandez Cruz , Firas Dahi , Yebo Feng , Jiahua Xu , Aanchal Malhotra , Paolo Tasca

This paper presents the results of a comprehensive empirical study of losses to arbitrageurs (following the formalization of loss-versus-rebalancing by [Milionis et al., 2022]) incurred by liquidity providers on automated market makers…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-04-23 Robin Fritsch , Andrea Canidio

Ethereum blockchain uses smart contracts (SCs) to implement decentralized applications (dApps). SCs are executed by the Ethereum virtual machine (EVM) running within an Ethereum client. Moreover, the EVM has been widely adopted by other…

Signal Processing · Electrical Eng. & Systems 2025-08-01 Joel Poncha Lemayian , Hachem Bensalem , Ghyslain Gagnon , Kaiwen Zhang , Pascal Giard