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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…
Anonymous Single-Sign-On authentication schemes have been proposed to allow users to access a service protected by a verifier without revealing their identity which has become more important due to the introduction of strong privacy…
In Federated Learning (FL), multiple clients collaborate to learn a shared model through a central server while keeping data decentralized. Personalized Federated Learning (PFL) further extends FL by learning a personalized model per…
Consider a principal who wants to search through a space of stochastic solutions for one maximizing their utility. If the principal cannot conduct this search on their own, they may instead delegate this problem to an agent with distinct…
Collateral is an item of value serving as security for the repayment of a loan. In blockchain-based loans, cryptocurrencies serve as the collateral. The high volatility of cryptocurrencies implies a serious barrier of entry with a common…
We study the problem faced by a service provider that has to sell services to a user. In our model the service provider proposes various payment options (a menu) to the user which may be based, for example, on the quality of the service.…
A principal delegates decisions to a biased agent. Payoffs depend on a state that the principal cannot observe. Initially, the agent does not observe the state, but he can acquire information about it at a cost. We characterize the…
Due to the computational cost of running inference for a neural network, the need to deploy the inferential steps on a third party's compute environment or hardware is common. If the third party is not fully trusted, it is desirable to…
We propose a unified structural credit risk model incorporating both insolvency and illiquidity risks, in order to investigate how a firm's default probability depends on the liquidity risk associated with its financing structure. We assume…
This paper presents a novel staking coopetition design aimed at incentivizing decentralization and continuous growth of economic security within a proof-of-stake system. Staking rewards follow a nonlinear mapping relative to stake size.…
We present a limits-to-arbitrage model to study the impact of securitization, leverage and credit risk protection on the cyclicity of bank credit. In a stable bank credit situation, no cycles of credit expansion or contraction appear.…
The study by De Montjoye et al. ("Science", 30 January 2015, p. 536) claimed that most individuals can be reidentified from a deidentified credit card transaction database and that anonymization mechanisms are not effective against…
On today's Internet, combining the end-to-end security of TLS with Content Delivery Networks (CDNs) while ensuring the authenticity of connections results in a challenging delegation problem. When CDN servers provide content, they have to…
Traditional public distributed ledgers have not been able to scale-out well and work efficiently. Sharding is deemed as a promising way to solve this problem. By partitioning all nodes into small committees and letting them work in…
We propose a new model of the liquidity driven banking system focusing on overnight interbank loans. This significant branch of the interbank market is commonly neglected in the banking system modeling and systemic risk analysis. We…
The authors examine the concept of probability of default for asset-backed loans. In contrast to unsecured loans it is shown that probability of default can be defined as either a measure of the likelihood of the borrower failing to make…
This paper studies fingerprinting (traitor tracing) games in which the number of colluders and the collusion channel are unknown. The fingerprints are embedded into host sequences representing signals to be protected and provide the…
Concentrated liquidity (CL) provisioning is a way how to improve the capital efficiency of Automated Market Makers (AMM). Allowing liquidity providers to use leverage is a step towards even higher capital efficiency. A number of…
Since federated learning (FL) has been introduced as a decentralized learning technique with privacy preservation, statistical heterogeneity of distributed data stays the main obstacle to achieve robust performance and stable convergence in…
Existing permissionless blockchain solutions rely on peer-to-peer propagation mechanisms, where nodes in a network transfer transaction they received to their neighbors. Unfortunately, there is no explicit incentive for such transaction…