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SoK: Decentralized Finance (DeFi)
[article]
2021
arXiv
pre-print
One and a half years ago the total value locked in DeFi systems was approximately 700m USD, now, as of September 2021, it stands at around 100bn USD. ...
In this Systematization of Knowledge (SoK) we delineate the DeFi ecosystem along the following axes: its primitives, its operational protocol types and its security. ...
K., Cully, A., Livshits, B., Gervais, A.: On the just-in-time discovery of profit-generating transactions in defi protocols. arXiv preprint arXiv:2103.02228 (2021) 169. ...
arXiv:2101.08778v5
fatcat:jodjae5zbbh2tkajguyrkxaa3i
Flashot: A Snapshot of Flash Loan Attack on DeFi Ecosystem
[article]
2021
arXiv
pre-print
Flash Loan attack can grab millions of dollars from decentralized vaults in one single transaction, drawing increasing attention from the Decentralized Finance (DeFi) players. ...
Finally, we conclude the development trends of Flash Loan attacks and discuss the great impact on DeFi ecosystem brought by Flash Loan. ...
Xiao Feng for insightful discussions about the development of Flash Loan and the significant impact it may bring to DeFi ecosystem. ...
arXiv:2102.00626v1
fatcat:jcl3i2zjpfd7navevmcvlcey54
Clockwork Finance: Automated Analysis of Economic Security in Smart Contracts
[article]
2021
arXiv
pre-print
Building on previous work, we introduce extractable value (EV), a new formal notion of economic security in composed DeFi contracts that is both a basis for CFF analyses and of general interest. ...
We introduce the Clockwork Finance Framework (CFF), a general purpose, formal verification framework for mechanized reasoning about the economic security properties of composed decentralized-finance (DeFi ...
Any opinions, findings, conclusions, or recommendations expressed here are those of the authors and may not reflect those of these sponsors. ...
arXiv:2109.04347v1
fatcat:25bgriy6lngg7ez5wgfc3hmanm
SoK: Oracles from the Ground Truth to Market Manipulation
[article]
2021
arXiv
pre-print
One fundamental limitation of blockchain-based smart contracts is that they execute in a closed environment and only have access to the data and functionality that is either already on the blockchain or ...
With their evolution comes more attacks, necessitating a greater attention to the trust model of using oracles. ...
Research on MEV (e.g., Flashbots [49] ) has shown the possibility of new type of attacks based on reordering the transactions, such that if there's a high profit for changing the order of some transactions ...
arXiv:2106.00667v1
fatcat:zfzoqsrjsvhrrpdvrwp7pehysm
Do Not Rug on Me: Leveraging Machine Learning Techniques for Automated Scam Detection
2022
Mathematics
In general, the models proposed achieved similar results. ...
After manually analyzing the data, we devised a theoretical classification of different malicious maneuvers in the Uniswap protocol. ...
Conflicts of Interest: The authors declare no conflict of interest. ...
doi:10.3390/math10060949
fatcat:v2fdhpzwrjegpdtgfhxuaqowmm
Blockchain Viewed from Mathematics
2021
Notices of the American Mathematical Society
asset each user owns, and a protocol, a set of rules that define how the ledger changes and govern user actions involving the asset. ...
In the modern era, we want some assets to be digital, or stored entirely as computer data. ...
I disclose that I have worked as a research consultant for the Ethereum Foundation. ...
doi:10.1090/noti2365
fatcat:wecgulckfvbrfke7ljh2pnzanu
Governing the Digital Finance Value-Chain in the EU: MIFID II, the Digital Package, and the Large Gaps between!
[chapter]
2021
Digital Finance in Europe: Law, Regulation, and Governance
We arev eryg rateful forc onstructive comments to Dr Heikki Marjosola, the co-editor of thiss pecial issue, and the participants of the joint Edinburgh-Helsinki webinar on Digital Finance in Europe. ...
It is mainlyp remised on automation of the investment process through the use of algorithmic tools and remoted elivery of services via integratedp latforms and apps.D uring the samep eriod, we have witnessed ...
The volume of uninterrupted transactions on DeFi platforms after the outbreak of Covid-19 -albeit of the kind discussed above -is in itself proof of the functionality and resilienceofDeFi infrastructure ...
doi:10.1515/9783110749472-002
fatcat:wjtkp2nwi5dyznzh7dlvthimfq
Leading with Vision: The Design of New Ventures
2010
Design Management Review
Although the business he initially developed to sell isolated electric systems (and DC electricity) was at least initially profitable, he sidestepped that in favor of the type of central generating plant ...
billing protocols. ...
doi:10.1111/j.1948-7169.2005.tb00005.x
fatcat:hfqx33myj5capm2zzcnhf6dm7y
Blockchain-Based Token Sales, Initial Coin Offerings, and the Democratization of Public Capital Markets
2017
Social Science Research Network
In a token sale, also referred to as an "initial coin offering" or "ICO," organizers of a project sell digital tokens to members of the public to finance the development of new technological platforms ...
Best known for their role in the creation of cryptocurrencies like bitcoin, blockchains are revolutionizing the way technology entrepreneurs finance their business enterprises. ...
in the generation of profits will not automatically take a transaction out of the scope of the Securities Act. 170 If, however, the generation of profits is primarily dependent on the efforts of investors ...
doi:10.2139/ssrn.3048104
fatcat:mrtlztfuwrcbloc3au3kuijzem
Blockchain-based Payment Channel Networks: Challenges and Recent Advances
2020
IEEE Access
State channels can support multiple participants and are essentially a generalization of payment channels: what is being tracked is the state of an arbitrary program -payments are just one possibility. ...
Interesting tradeoffs arise, as higher fees might lead to higher profits but at the same time to lower probability of being selected as a relay. ...
His research interests are in the field of computer and communication networks, with the emphasis on fundamental mathematical models and algorithms of complex networks, architectures and protocols of wireless ...
doi:10.1109/access.2020.3046020
fatcat:7vodn7z6abd53afgpkfffcg2hi
Unchaining Collective Intelligence for Science, Research, and Technology Development by Blockchain-Boosted Community Participation
2021
Frontiers in Blockchain
On the analogy of its current blockbusters like peer-to-peer structured decentralized finance ("DeFi"), blockchain technology can seminally enhance the efficiency of science and RTD initiatives, even permitting ...
This study aper analyses how key factors underpinning the success of this ground-breaking "Internet of value" technology, such as staking of collateral ("skin in the game"), competitive crowdsourcing, ...
These packets of transaction data are competitively and redundantly created, time-stamped, verified, and selected for inclusion according to a deterministic, codebased consensus protocol. ...
doi:10.3389/fbloc.2021.631648
fatcat:k3uqidrh4fg2he4ou2niq7v7si
Bitcoin and Beyond: A Technical Survey on Decentralized Digital Currencies
2016
IEEE Communications Surveys and Tutorials
In the process, we deduce the fundamental structures and insights at the core of the Bitcoin protocol and its applications. ...
In this survey, we unroll and structure the manyfold results and research directions. We start by introducing the Bitcoin protocol and its building blocks. ...
The authors would like to thank Daniel Cagara for the discussions on this topic and for sharing his practical experience. ...
doi:10.1109/comst.2016.2535718
fatcat:xmdaafdgsvc6tam2kzmaeyorta
Privacy-Preserving Decentralized Exchange Marketplaces
[article]
2021
arXiv
pre-print
In this paper, we present Rialto, a fully decentralized privacy-preserving exchange marketplace with support for matching trade orders, on-chain settlement and market price discovery. ...
However, they compromise on the privacy of traders with respect to their asset ownership, account balance, order details and their identity. ...
Prior work [37], [38] has shown that transaction tracing
Denial of service attacks on brokers: A targeted attack on a and transaction graph analysis results in de-anonymization of
single broker ...
arXiv:2111.15259v2
fatcat:hl2dyln5l5cmjjlae4kxmqlzy4
Lissy: Experimenting with on-chain order books
[article]
2021
arXiv
pre-print
The popularity of Uniswap, an automated market makers (AMM), made these concerns a reality. ...
This leaves the following research questions we address in this paper: (1) are conventional (i.e., order books), secure (i.e., resistant to front-running and price manipulation) and fully decentralized ...
An advantage of on-chain trading is that other smart contracts, not just human users, can initiate trades, enabling broader decentralized finance (DeFi) applications. ...
arXiv:2101.06291v3
fatcat:dn2r2of6lvem5ijvlp4c5r6bfu
The Impact of IT on Market Information and Transparency: A Unified Theoretical Framework
2006
Journal of the AIS
With the advent of the Internet, we have seen existing markets transform and new ones emerge. ...
His current work focuses on the impact of information transparency on consumer demand, market prices and the broader impact on market structure, with a special focus on the air travel industry. ...
This theory provides new perspectives on the possible outcomes of market organization, beyond just the level of bias. ...
doi:10.17705/1jais.00083
fatcat:uqjila6an5gibkq7wyrzjtc2u4
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