arXiv subjects

Jiahua Xu

Publications and source records attributed to Jiahua Xu.

At least 37 records · Page 2Linked to original sources

arXiv2025

DeFi versus TradFi: Valuation Using Multiples and Discounted Cash Flows

As of August 2022, blockchain-based assets boast a combined market capitalisation exceeding one trillion USD, among which the most prominent are the decentralised autonomous organisation (DAO) tokens associated with decentralised finance (DeFi) protocols. In this work, we seek to value DeFi tokens using the canonical multiples and discount cash flow (DCF) approaches. We examine a subset of DeFi services including decentralised exchanges (DEXs), protocol for loanable funds (PLFs), and yield aggregators. We apply the same analysis to some publicly traded firms and compare them with DeFi tokens of the analogous category. Interestingly, despite the crypto bear market lasting for more than one year as of August 2022, both approaches evidence overvaluation in DeFi.

econ.GN↗

arXiv2025

Auto.gov: Learning-based Governance for Decentralized Finance (DeFi)

Decentralized finance (DeFi) is an integral component of the blockchain ecosystem, enabling a range of financial activities through smart-contract-based protocols. Traditional DeFi governance typically involves manual parameter adjustments by protocol teams or token holder votes, and is thus prone to human bias and financial risks, undermining the system's integrity and security. While existing efforts aim to establish more adaptive parameter adjustment schemes, there remains a need for a governance model that is both more efficient and resilient to significant market manipulations. In this paper, we introduce "Auto$.$gov", a learning-based governance framework that employs a deep Qnetwork (DQN) reinforcement learning (RL) strategy to perform semi-automated, data-driven parameter adjustments. We create a DeFi environment with an encoded action-state space akin to the Aave lending protocol for simulation and testing purposes, where Auto$.$gov has demonstrated the capability to retain funds that would have otherwise been lost to price oracle attacks. In tests with real-world data, Auto$.$gov outperforms the benchmark approaches by at least 14% and the static baseline model by tenfold, in terms of the preset performance metric--protocol profitability. Overall, the comprehensive evaluations confirm that Auto$.$gov is more efficient and effective than traditional governance methods, thereby enhancing the security, profitability, and ultimately, the sustainability of DeFi protocols.

q-fin.RM↗

arXiv2025

Triple-entry Accounting, Blockchain and Next of Kin: Towards a Standardisation of Ledger Terminology

Triple-entry accounting (TEA) is simultaneously a novel application in the blockchain universe and one of the many concepts applied in blockchain technology. Its Wild Wild West status is accompanied by a lack of consistent and comprehensive set of categories, a state of play that impedes a proper apprehension of the technology, leading to contradictions and oversight of important nuances. To clearly delineate the confines of TEA within the world of blockchain, we provide building blocks to standardise its terminology. Particularly, we distinguish between essential elements such as accounting and bookkeeping, as well as between decentralised systems, distributed ledgers and distributed journals.

cs.CR↗

arXiv2025

\textsc{Perseus}: Tracing the Masterminds Behind Cryptocurrency Pump-and-Dump Schemes

Masterminds are entities organizing, coordinating, and orchestrating cryptocurrency pump-and-dump schemes, a form of trade-based manipulation undermining market integrity and causing financial losses for unwitting investors. Previous research detects pump-and-dump activities in the market, predicts the target cryptocurrency, and examines investors and \ac{osn} entities. However, these solutions do not address the root cause of the problem. There is a critical gap in identifying and tracing the masterminds involved in these schemes. In this research, we develop a detection system \textsc{Perseus}, which collects real-time data from the \acs{osn} and cryptocurrency markets. \textsc{Perseus} then constructs temporal attributed graphs that preserve the direction of information diffusion and the structure of the community while leveraging \ac{gnn} to identify the masterminds behind pump-and-dump activities. Our design of \textsc{Perseus} leads to higher F1 scores and precision than the \ac{sota} fraud detection method, achieving fast training and inferring speeds. Deployed in the real world from February 16 to October 9 2024, \textsc{Perseus} successfully detects $438$ masterminds who are efficient in the pump-and-dump information diffusion networks. \textsc{Perseus} provides regulators with an explanation of the risks of masterminds and oversight capabilities to mitigate the pump-and-dump schemes of cryptocurrency.

cs.CY↗

arXiv2024

DynaShard: Secure and Adaptive Blockchain Sharding Protocol with Hybrid Consensus and Dynamic Shard Management

Blockchain sharding has emerged as a promising solution to the scalability challenges in traditional blockchain systems by partitioning the network into smaller, manageable subsets called shards. Despite its potential, existing sharding solutions face significant limitations in handling dynamic workloads, ensuring secure cross-shard transactions, and maintaining system integrity. To address these gaps, we propose DynaShard, a dynamic and secure cross-shard transaction processing mechanism designed to enhance blockchain sharding efficiency and security. DynaShard combines adaptive shard management, a hybrid consensus approach, plus an efficient state synchronization and dispute resolution protocol. Our performance evaluation, conducted using a robust experimental setup with real-world network conditions and transaction workloads, demonstrates DynaShard's superior throughput, reduced latency, and improved shard utilization compared to the FTBS method. Specifically, DynaShard achieves up to a 42.6% reduction in latency and a 78.77% improvement in shard utilization under high transaction volumes and varying cross-shard transaction ratios. These results highlight DynaShard's ability to outperform state-of-the-art sharding methods, ensuring scalable and resilient blockchain systems. We believe that DynaShard's innovative approach will significantly impact future developments in blockchain technology, paving the way for more efficient and secure distributed systems.

cs.DC↗

arXiv2024

Motion Artifact Removal in Pixel-Frequency Domain via Alternate Masks and Diffusion Model

Motion artifacts present in magnetic resonance imaging (MRI) can seriously interfere with clinical diagnosis. Removing motion artifacts is a straightforward solution and has been extensively studied. However, paired data are still heavily relied on in recent works and the perturbations in k-space (frequency domain) are not well considered, which limits their applications in the clinical field. To address these issues, we propose a novel unsupervised purification method which leverages pixel-frequency information of noisy MRI images to guide a pre-trained diffusion model to recover clean MRI images. Specifically, considering that motion artifacts are mainly concentrated in high-frequency components in k-space, we utilize the low-frequency components as the guide to ensure correct tissue textures. Additionally, given that high-frequency and pixel information are helpful for recovering shape and detail textures, we design alternate complementary masks to simultaneously destroy the artifact structure and exploit useful information. Quantitative experiments are performed on datasets from different tissues and show that our method achieves superior performance on several metrics. Qualitative evaluations with radiologists also show that our method provides better clinical feedback. Our code is available at https://github.com/medcx/PFAD.

eess.IV↗

arXiv2024

How the interplay between power concentration, competition, and propagation affects the resource efficiency of distributed ledgers

Forks in the Bitcoin network result from the natural competition in the blockchain's Proof-of-Work consensus protocol. Their frequency is a critical indicator for the efficiency of a distributed ledger as they can contribute to resource waste and network insecurity. We introduce a model for the estimation of natural fork rates in a network of heterogeneous miners as a function of their number, the distribution of hash rates and the block propagation time over the peer-to-peer infrastructure. Despite relatively simplistic assumptions, such as zero propagation delay within mining pools, the model predicts fork rates which are comparable with the empirical stale blocks rate. In the past decade, we observe a reduction in the number of mining pools approximately by a factor 3, and quantify its consequences for the fork rate, whilst showing the emergence of a truncated power-law distribution in hash rates, justified by a rich-get-richer effect constrained by global energy supply limits. We demonstrate, both empirically and with the aid of our quantitative model, that the ratio between the block propagation time and the mining time is a sufficiently accurate estimator of the fork rate, but also quantify its dependence on the heterogeneity of miner activities. We provide empirical and theoretical evidence that both hash rate concentration and lower block propagation time reduce fork rates in distributed ledgers. Our work introduces a robust mathematical setting for investigating power concentration and competition on a distributed network, for interpreting discrepancies in fork rates -- for example caused by selfish mining practices and asymmetric propagation times -- thus providing an effective tool for designing future and alternative scenarios for existing and new blockchain distributed mining systems.

cs.DC↗

arXiv2024

Benchmarking ZK-Friendly Hash Functions and SNARK Proving Systems for EVM-compatible Blockchains

With the rapid development of Zero-Knowledge Proofs (ZKPs), particularly Succinct Non-Interactive Arguments of Knowledge (SNARKs), benchmarking various ZK tools has become a valuable task. ZK-friendly hash functions, as key algorithms in blockchain, have garnered significant attention. Therefore, comprehensive benchmarking and evaluations of these evolving algorithms in ZK circuits present both promising opportunities and challenges. Additionally, we focus on a popular ZKP application, privacy-preserving transaction protocols, aiming to leverage SNARKs' cost-efficiency through "batch processing" to address high on-chain costs and compliance issues. To this end, we benchmarked three SNARK proving systems and five ZK-friendly hash functions, including our self-developed circuit templates for Poseidon2, Neptune, and GMiMC, on the bn254 curve within the circom-snarkjs framework. We also introduced the role of "sequencer" in our SNARK-based privacy-preserving transaction scheme to enhance efficiency and enable flexible auditing. We conducted privacy and security analyses, as well as implementation and evaluation on Ethereum Virtual Machine (EVM)-compatible chains. The results indicate that Poseidon and Poseidon2 demonstrate superior memory usage and runtime during proof generation under Groth16. Moreover, compared to the baseline, Poseidon2 not only generates proofs faster but also reduces on-chain costs by 73% on EVM chains and nearly 26% on Hedera. Our work provides a benchmark for ZK-friendly hash functions and ZK tools, while also exploring cost efficiency and compliance in ZKP-based privacy-preserving transaction protocols.

cs.CR↗

arXiv2024

No Questions Asked: Effects of Transparency on Stablecoin Liquidity During the Collapse of Silicon Valley Bank

Fiat-pegged stablecoins are by nature exposed to spillover effects during market turmoil in Traditional Finance (TradFi). We observe a difference in TradFi market shocks impact between various stablecoins, in particular, USD Coin (USDC) and Tether USDT (USDT), the former with a higher reporting frequency and transparency than the latter. We investigate this, using top USDC and USDT liquidity pools in Uniswap, by adapting the Marginal Cost of Immediacy (MCI) measure to Uniswap's Automated Market Maker, and then conducting Difference-in-Differences analysis on MCI and Total Value Locked (TVL) in USD, as well as measuring liquidity concentration across different providers. Results show that the Silicon Valley Bank (SVB) event reduced USDC's TVL dominance over USDT, increased USDT's liquidity cost relative to USDC, and liquidity provision remained concentrated with pool-specific trends. These findings reveal a flight-to-safety behavior and counterintuitive effects of stablecoin transparency: USDC's frequent and detailed disclosures led to swift market reactions, while USDT's opacity and less frequent reporting provided a safety net against immediate impacts.

q-fin.TR↗

arXiv2024

LiSD: An Efficient Multi-Task Learning Framework for LiDAR Segmentation and Detection

With the rapid proliferation of autonomous driving, there has been a heightened focus on the research of lidar-based 3D semantic segmentation and object detection methodologies, aiming to ensure the safety of traffic participants. In recent decades, learning-based approaches have emerged, demonstrating remarkable performance gains in comparison to conventional algorithms. However, the segmentation and detection tasks have traditionally been examined in isolation to achieve the best precision. To this end, we propose an efficient multi-task learning framework named LiSD which can address both segmentation and detection tasks, aiming to optimize the overall performance. Our proposed LiSD is a voxel-based encoder-decoder framework that contains a hierarchical feature collaboration module and a holistic information aggregation module. Different integration methods are adopted to keep sparsity in segmentation while densifying features for query initialization in detection. Besides, cross-task information is utilized in an instance-aware refinement module to obtain more accurate predictions. Experimental results on the nuScenes dataset and Waymo Open Dataset demonstrate the effectiveness of our proposed model. It is worth noting that LiSD achieves the state-of-the-art performance of 83.3% mIoU on the nuScenes segmentation benchmark for lidar-only methods.

cs.CV↗

arXiv2024

Performance Upper Bound of Grover-Mixer Quantum Alternating Operator Ansatz

The Quantum Alternating Operator Ansatz (QAOA) represents a branch of quantum algorithms for solving combinatorial optimization problems. A specific variant, the Grover-Mixer Quantum Alternating Operator Ansatz (GM-QAOA), ensures uniform amplitude across states that share equivalent objective values. This property makes the algorithm independent of the problem structure, focusing instead on the distribution of objective values within the problem. In this work, we prove the probability upper bound for measuring a computational basis state from a GM-QAOA circuit with a given depth, which is a critical factor in QAOA cost. Using this, we derive the upper bounds for the probability of sampling an optimal solution, and for the approximation ratio of maximum optimization problems, both dependent on the objective value distribution. Through numerical analysis, we link the distribution to the problem size and build the regression models that relate the problem size, QAOA depth, and performance upper bound. Our results suggest that the GM-QAOA provides a quadratic enhancement in sampling probability and requires circuit depth that scales exponentially with problem size to maintain consistent performance.

quant-ph↗

arXiv2024

SecPLF: Secure Protocols for Loanable Funds against Oracle Manipulation Attacks

The evolving landscape of Decentralized Finance (DeFi) has raised critical security concerns, especially pertaining to Protocols for Loanable Funds (PLFs) and their dependency on price oracles, which are susceptible to manipulation. The emergence of flash loans has further amplified these risks, enabling increasingly complex oracle manipulation attacks that can lead to significant financial losses. Responding to this threat, we first dissect the attack mechanism by formalizing the standard operational and adversary models for PLFs. Based on our analysis, we propose SecPLF, a robust and practical solution designed to counteract oracle manipulation attacks efficiently. SecPLF operates by tracking a price state for each crypto-asset, including the recent price and the timestamp of its last update. By imposing price constraints on the price oracle usage, SecPLF ensures a PLF only engages a price oracle if the last recorded price falls within a defined threshold, thereby negating the profitability of potential attacks. Our evaluation based on historical market data confirms SecPLF's efficacy in providing high-confidence prevention against arbitrage attacks that arise due to minor price differences. SecPLF delivers proactive protection against oracle manipulation attacks, offering ease of implementation, oracle-agnostic property, and resource and cost efficiency.

cs.CR↗

arXiv2023

GraphIQA: Learning Distortion Graph Representations for Blind Image Quality Assessment

A good distortion representation is crucial for the success of deep blind image quality assessment (BIQA). However, most previous methods do not effectively model the relationship between distortions or the distribution of samples with the same distortion type but different distortion levels. In this work, we start from the analysis of the relationship between perceptual image quality and distortion-related factors, such as distortion types and levels. Then, we propose a Distortion Graph Representation (DGR) learning framework for IQA, named GraphIQA, in which each distortion is represented as a graph, i.e., DGR. One can distinguish distortion types by learning the contrast relationship between these different DGRs, and infer the ranking distribution of samples from different levels in a DGR. Specifically, we develop two sub-networks to learn the DGRs: a) Type Discrimination Network (TDN) that aims to embed DGR into a compact code for better discriminating distortion types and learning the relationship between types; b) Fuzzy Prediction Network (FPN) that aims to extract the distributional characteristics of the samples in a DGR and predicts fuzzy degrees based on a Gaussian prior. Experiments show that our GraphIQA achieves the state-of-the-art performance on many benchmark datasets of both synthetic and authentic distortions.

cs.MM↗

arXiv2023

Trace Monomial Boolean Functions with Large High-Order Nonlinearities

Exhibiting an explicit Boolean function with a large high-order nonlinearity is an important problem in cryptography, coding theory, and computational complexity. We prove lower bounds on the second-order, third-order, and higher-order nonlinearities of some trace monomial Boolean functions. We prove lower bounds on the second-order nonlinearities of functions $\mathrm{tr}_n(x^7)$ and $\mathrm{tr}_n(x^{2^r+3})$ where $n=2r$. Among all trace monomials, our bounds match the best second-order nonlinearity lower bounds by \cite{Car08} and \cite{YT20} for odd and even $n$ respectively. We prove a lower bound on the third-order nonlinearity for functions $\mathrm{tr}_n(x^{15})$, which is the best third-order nonlinearity lower bound. For any $r$, we prove that the $r$-th order nonlinearity of $\mathrm{tr}_n(x^{2^{r+1}-1})$ is at least $2^{n-1}-2^{(1-2^{-r})n+\frac{r}{2^{r-1}}-1}- O(2^{\frac{n}{2}})$. For $r \ll \log_2 n$, this is the best lower bound among all explicit functions.

cs.CR↗

arXiv2023

REA, Triple-Entry Accounting and Blockchain: Converging Paths to Shared Ledger Systems

The concept of shared ledger systems offering a single source of truth has repeatedly called traditional bookkeeping into question. Improving upon the long-standing double-entry system, solutions such as the Resource-Event-Agent (REA) accounting framework, triple-entry accounting (TEA) and blockchain have been advanced. However, to date, the historical development of these concepts remains murky. This paper conducts a genealogical analysis of shared ledger systems, in particular tracing the development of REA, TEA and blockchain. We show how the REA framework has had a distinct influence on independent streams of research in the field of TEA, and how this interaction may be traced to the present incarnation of shared ledger systems in blockchain. In doing so, we duly acknowledge the influence of key individuals contributing to this development, correct common misconceptions and map out how the paths of REA, TEA and blockchain overlap in the realm of shared ledger systems.

cs.CY↗

arXiv2023

A Short Survey on Business Models of Decentralized Finance (DeFi) Protocols

Decentralized Finance (DeFi) services are moving traditional financial operations to the Internet of Value (IOV) by exploiting smart contracts, distributed ledgers, and clever heterogeneous transactions among different protocols. The exponential increase of the Total Value Locked (TVL) in DeFi foreshadows a bright future for automated money transfers in a plethora of services. In this short survey paper, we describe the business model for different DeFi domains - namely, Protocols for Loanable Funds (PLFs), Decentralized Exchanges (DEXs), and Yield Aggregators. We claim that the current state of the literature is still unclear how to value thousands of different competitors (tokens) in DeFi. With this work, we abstract the general business model for different DeFi domains and compare them. Finally, we provide open research challenges that will involve heterogeneous domains such as economics, finance, and computer science.

econ.GN↗

arXiv2023

SoK: Decentralized Exchanges (DEX) with Automated Market Maker (AMM) Protocols

As an integral part of the decentralized finance (DeFi) ecosystem, decentralized exchanges (DEXs) with automated market maker (AMM) protocols have gained massive traction with the recently revived interest in blockchain and distributed ledger technology (DLT) in general. Instead of matching the buy and sell sides, automated market makers (AMMs) employ a peer-to-pool method and determine asset price algorithmically through a so-called conservation function. To facilitate the improvement and development of automated market maker (AMM)-based decentralized exchanges (DEXs), we create the first systematization of knowledge in this area. We first establish a general automated market maker (AMM) framework describing the economics and formalizing the system's state-space representation. We then employ our framework to systematically compare the top automated market maker (AMM) protocols' mechanics, illustrating their conservation functions, as well as slippage and divergence loss functions. We further discuss security and privacy concerns, how they are enabled by automated market maker (AMM)-based decentralized exchanges (DEXs)' inherent properties, and explore mitigating solutions. Finally, we conduct a comprehensive literature review on related work covering both decentralized finance (DeFi) and conventional market microstructure.

q-fin.TR↗

arXiv2022

From banks to DeFi: the evolution of the lending market

The Internet of Value (IOV) with its distributed ledger technology (DLT) underpinning has created new forms of lending markets. As an integral part of the decentralised finance (DeFi) ecosystem, lending protocols are gaining tremendous traction, holding an aggregate liquidity supply of over $40 billion at the time of writing. In this paper, we enumerate the challenges of traditional money markets led by banks and lending platforms, and present advantageous characteristics of DeFi lending protocols that might help resolve deep-rooted issues in the conventional lending environment. With the examples of Maker, Compound and Aave, we describe in detail the mechanism of DeFi lending protocols. We discuss the persisting reliance of DeFi lending on the traditional financial system, and conclude with the outlook of the lending market in the IOV era.

cs.CY↗