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Organisations are starting to adopt LLM-based AI agents, with their deployments naturally evolving from single agents towards interconnected, multi-agent networks. Yet a collection of safe agents does not guarantee a safe collection of…

Multiagent Systems · Computer Science 2025-08-11 Alistair Reid , Simon O'Callaghan , Liam Carroll , Tiberio Caetano

We study the economic viability of liquidity provision in decentralised exchanges (DEXs) within a structural framework in which market outcomes are endogenous. We formulate strategic interactions as a sequential game: a risk-averse…

Trading and Market Microstructure · Quantitative Finance 2026-03-05 Fayçal Drissi , Xuchen Wu , Sebastian Jaimungal

We consider a financial network represented at any time instance by a random liability graph which evolves over time. The agents connect through credit instruments borrowed from each other or through direct lending, and these create the…

Risk Management · Quantitative Finance 2022-12-23 Indrajit Saha , Veeraruna Kavitha

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma

Any autonomous controller will be unsafe in some situations. The ability to quantitatively identify when these unsafe situations are about to occur is crucial for drawing timely human oversight in, e.g., freight transportation applications.…

Machine Learning · Computer Science 2024-10-10 Alexander Grushin , Walt Woods , Alvaro Velasquez , Simon Khan

Tool-using agent systems powered by large language models (LLMs) are increasingly deployed across web, app, operating-system, and transactional environments. Yet existing safety benchmarks still emphasize explicit risks, potentially…

Artificial Intelligence · Computer Science 2026-05-06 Zuoyu Zhang , Yancheng Zhu

Efficient agentic systems should incur expensive frontier-model costs only on decisions where a cheaper local model is likely to fail. Existing LLM cascades usually route whole queries before execution, but task difficulty shifts…

Three traits of decentralized finance are studied. First, the market impact function is derived for optimal-growth liquidity providers. For a standard random walk, the classic square-root impact is recovered. An extension is then derived to…

Portfolio Management · Quantitative Finance 2026-01-19 B. K. Meister

On November 22nd 2022, the lending platform AAVE v2 (on Ethereum) incurred bad debt resulting from a major liquidation event involving a single user who had borrowed close to \$40M of CRV tokens using USDC as collateral. This incident has…

General Economics · Economics 2023-01-16 Jakub Warmuz , Amit Chaudhary , Daniele Pinna

The rapid integration of Large Language Models (LLMs) into high-stakes domains necessitates reliable safety and compliance evaluation. However, existing static benchmarks are ill-equipped to address the dynamic nature of AI risks and…

Artificial Intelligence · Computer Science 2026-05-15 Yixu Wang , Xin Wang , Yang Yao , Xinyuan Li , Xibang Yang , Yan Teng , Xingjun Ma , Yingchun Wang

This paper applies deep reinforcement learning (DRL) to optimize liquidity provisioning in Uniswap v3, a decentralized finance (DeFi) protocol implementing an automated market maker (AMM) model with concentrated liquidity. We model the…

Computational Finance · Quantitative Finance 2025-01-14 Haonan Xu , Alessio Brini

For survival, a living agent must have the ability to assess risk (1) by temporally anticipating accidents before they occur, and (2) by spatially localizing risky regions in the environment to move away from threats. In this paper, we take…

Computer Vision and Pattern Recognition · Computer Science 2017-05-19 Kuo-Hao Zeng , Shih-Han Chou , Fu-Hsiang Chan , Juan Carlos Niebles , Min Sun

Many online platforms have deployed anti-fraud systems to detect and prevent fraudulent activities. However, there is usually a gap between the time that a user commits a fraudulent action and the time that the user is suspended by the…

Machine Learning · Computer Science 2018-11-15 Panpan Zheng , Shuhan Yuan , Xintao Wu

Lending protocols are one of the main applications of Decentralized Finance (DeFi), enabling crypto-assets loan markets with a total value estimated in the tens of billions of dollars. Unlike traditional lending systems, these protocols…

Computer Science and Game Theory · Computer Science 2025-06-19 Massimo Bartoletti , Enrico Lipparini

Decentralized lending protocols within the decentralized finance ecosystem enable the lending and borrowing of crypto-assets without relying on traditional intermediaries. Interest rates in these protocols are set algorithmically and…

Mathematical Finance · Quantitative Finance 2025-02-28 Bastien Baude , Damien Challet , Ioane Muni Toke

Security risk analysis typically treats control effectiveness as a static input, yet controls degrade through configuration drift, depend on monitoring systems that may themselves be degraded, and compete for finite remediation budgets. The…

Cryptography and Security · Computer Science 2026-05-27 Jack Jones , Laura Voicu

Reactive and safe agent modelings are important for nowadays traffic simulator designs and safe planning applications. In this work, we proposed a reactive agent model which can ensure safety without comprising the original purposes, by…

Multiagent Systems · Computer Science 2021-09-15 Yue Meng , Zengyi Qin , Chuchu Fan

The StableSims project set out to determine optimal parameters for the new auction mechanism, Liquidations 2.0, used by MakerDAO, a protocol built on Ethereum offering a decentralized, collateralized stablecoin called Dai. We developed an…

General Economics · Economics 2022-01-11 Andrew Kirillov , Sehyun Chung

In this article, we explore the feasibility of applying proximal policy optimization, a state-of-the-art deep reinforcement learning algorithm for continuous control tasks, on the dual-objective problem of controlling an underactuated…

Machine Learning · Computer Science 2019-12-20 Eivind Meyer , Haakon Robinson , Adil Rasheed , Omer San

Decentralized exchanges (DEXs) are crucial to decentralized finance (DeFi) as they enable trading without intermediaries. However, they face challenges like impermanent loss (IL), where liquidity providers (LPs) see their assets' value…

Computer Science and Game Theory · Computer Science 2026-03-04 Irina Lebedeva , Dmitrii Umnov , Yury Yanovich , Ignat Melnikov , George Ovchinnikov