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This paper presents EDSC, a novel smart contract platform design based on the event-driven execution model as opposed to the traditionally employed transaction-driven execution model. We reason that such a design is a better fit for many…

Distributed, Parallel, and Cluster Computing · Computer Science 2021-01-15 Mudabbir Kaleem , Keshav Kasichainula , Rabimba Karanjai , Lei Xu , Zhimin Gao , Lin Chen , Weidong Shi

We investigate the behavior of liquidity providers (LPs) by modeling a decentralized cryptocurrency exchange (DEX) based on Uniswap v3. LPs with heterogeneous characteristics choose optimal liquidity positions subject to uncertainty…

Trading and Market Microstructure · Quantitative Finance 2024-04-16 Erhan Bayraktar , Asaf Cohen , April Nellis

Ethereum 2.0 is the second-largest cryptocurrency by market capitalization and a widely used smart contract platform. Therefore, examining the reliability of Ethereum 2.0's incentive mechanism is crucial, particularly its effectiveness in…

Computer Science and Game Theory · Computer Science 2024-05-08 Chien-Chih Chen , Wojciech Golab

We propose a model suggesting that honest-but-rational consensus participants may play timing games, and strategically delay their block proposal to optimize MEV capture, while still ensuring the proposal's timely inclusion in the canonical…

Computer Science and Game Theory · Computer Science 2023-05-17 Caspar Schwarz-Schilling , Fahad Saleh , Thomas Thiery , Jennifer Pan , Nihar Shah , Barnabé Monnot

Blokchain is used in a variety of applications where trustworthy computing is re-quired. Trade finance is one of these areas that would benefit immensely from a decentralized way of doing transactions. This paper presents the preliminary…

Cryptography and Security · Computer Science 2022-04-29 Asif Bhat , Rizal Mohd Nor , Md Amiruzzaman , Md. Rajibul Islam

Can you imagine, blockchain transactions can talk! In this paper, we study how they talk and what they talk about. We focus on the input data field of Ethereum transactions, which is designed to allow external callers to interact with smart…

Cryptography and Security · Computer Science 2025-06-02 Xihan Xiong , Zhipeng Wang , Qin Wang , Endong Liu , Pascal Berrang , William Knottenbelt

If financial markets displayed the informational efficiency postulated in the efficient markets hypothesis (EMH), arbitrage operations would be self-extinguishing. The present paper considers arbitrage sequences in foreign exchange (FX)…

General Finance · Quantitative Finance 2012-12-27 Rod Cross , Victor Kozyakin

Decentralised exchanges (DEXs) have transformed trading by enabling trustless, permissionless transactions, yet they face significant challenges such as impermanent loss and slippage, which undermine profitability for liquidity providers…

Trading and Market Microstructure · Quantitative Finance 2025-04-10 Oliver Tronn Scott-Simons , Chris Colman , FrostByte

We identify a subtle security issue that impacts the design of smart contracts, because agents may themselves deploy smart contracts (side contracts). Typically, equilibria of games are analyzed in vitro, under the assumption that players…

Computer Science and Game Theory · Computer Science 2023-05-05 Daji Landis , Nikolaj I. Schwartzbach

This paper presents a study of the Poof-of-Stake (PoW) Ethereum consensus protocol, following the recent switch from Proof-of-Work (PoS) to Proof-of-Stake within Merge upgrade. The new protocol has resulted in reduced energy consumption and…

Computer Science and Game Theory · Computer Science 2023-05-24 Benjamin Kraner , Nicolò Vallarano , Claudio J. Tessone , Caspar Schwarz-Schilling

In multi-agent reinforcement learning systems, the actions of one agent can have a negative impact on the rewards of other agents. One way to combat this problem is to let agents trade their rewards amongst each other. Motivated by this,…

Artificial Intelligence · Computer Science 2022-07-25 Michael Kölle , Lennart Rietdorf , Kyrill Schmid

We consider issues of time in automated trading strategies in simulated financial markets containing a single exchange with public limit order book and continuous double auction matching. In particular, we explore two effects: (i) reaction…

Multiagent Systems · Computer Science 2021-03-02 Henry Hanifan , Ben Watson , John Cartlidge , Dave Cliff

Smart contract transactions demonstrate issues of performance and correctness that application programmers must work around. Although the blockchain consensus mechanism approaches ACID compliance, use cases that rely on frequent state…

Distributed, Parallel, and Cluster Computing · Computer Science 2019-05-30 Victor Cook , Zachary Painter , Christina Peterson , Damian Dechev

A transaction fee mechanism (TFM) is an essential component of a blockchain protocol. However, a systematic evaluation of the real-world impact of TFMs is still absent. Using rich data from the Ethereum blockchain, the mempool, and…

General Economics · Economics 2025-08-11 Yulin Liu , Yuxuan Lu , Kartik Nayak , Fan Zhang , Luyao Zhang , Yinhong Zhao

Optimistic responsiveness -- the ability of a consensus protocol to operate at the speed of the network -- is widely used in consensus protocol design to optimize latency and throughput. However, blockchain applications incentivize…

Computer Science and Game Theory · Computer Science 2025-10-30 Kaya Alpturer , Kushal Babel , Aditya Saraf

Several recent proposals implicitly or explicitly suggest making use of randomized transaction ordering within a block to mitigate centralization effects and to improve fairness in the Ethereum ecosystem. However, transactions and blocks…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-10-01 Jan Droll

We study Arbitrum's Timeboost mechanism following the adoption of Kairos by its main users -- Wintermute and Selini Capital -- to understand how the emergence of a just-in-time secondary market affects the dynamics of an ahead-of-time…

Computer Science and Game Theory · Computer Science 2026-04-01 Burak Öz , Christoph Schlegel , Akaki Mamageishvili

Decentralized Exchanges (DEXs) are new types of marketplaces leveraging Blockchain technology. They allow users to trade assets with Automatic Market Makers (AMM), using funds provided by liquidity providers, removing the need for order…

Computer Science and Game Theory · Computer Science 2023-02-08 Yogev Bar-On , Yishay Mansour

Blockchain technology has revolutionized financial markets by enabling decentralized exchanges (DEXs) that operate without intermediaries. Uniswap V2, a leading DEX, facilitates the rapid creation and trading of new tokens, which offer high…

Computational Finance · Quantitative Finance 2026-02-18 Manuel Naviglio , Francesco Tarantelli , Fabrizio Lillo

Understanding the economic intent of Ethereum transactions is critical for user safety, yet current tools expose only raw on-chain data or surface-level intent, leading to widespread "blind signing" (approving transactions without…

Computational Engineering, Finance, and Science · Computer Science 2026-03-19 Zifan Peng , Jingyi Zheng , Yule Liu , Huaiyu Jia , Qiming Ye , Jingyu Liu , Xufeng Yang , Mingchen Li , Qingyuan Gong , Xuechao Wang , Xinlei He
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