arXiv subjects

Jiahua Xu

Publications and source records attributed to Jiahua Xu.

At least 55 records · Page 3Linked to original sources

arXiv2022

Token-based Insurance Solutions on Blockchain

With the rising demand for protection against new risks such as loss of digital assets, novel insurance services and products emerge. In particular, token-based insurance solutions on blockchain transform the insurance business by providing cover for new risks and streamlined, (semi-)automated underwriting and claim processes. In the chapter, we present a general framework of token-based insurance solutions, delegating their fundamental building blocks that include core roles, main tokens and assets, as well as key processes and operations. We describe three major token-based insurance solutions in the market and compare them in terms of native token functionality, tokenized cover types, claim assessment process and capital model. Based on the discussion on the general framework and concrete examples of token-based insurance solutions, we summarize their advantages and point out their drawbacks. We conclude that despite being at a nascent stage, the token-based insurance space bears the promise to unseat the incumbent players with increasingly more action taking place and more use cases being explored.

cs.CY↗

arXiv2022

Reap the Harvest on Blockchain: A Survey of Yield Farming Protocols

Yield farming represents an immensely popular asset management activity in decentralized finance (DeFi). It involves supplying, borrowing, or staking crypto assets to earn an income in forms of transaction fees, interest, or participation rewards at different DeFi marketplaces. In this systematic survey, we present yield farming protocols as an aggregation-layer constituent of the wider DeFi ecosystem that interact with primitive-layer protocols such as decentralized exchanges (DEXs) and protocols for loanable funds (PLFs). We examine the yield farming mechanism by first studying the operations encoded in the yield farming smart contracts, and then performing stylized, parameterized simulations on various yield farming strategies. We conduct a thorough literature review on related work, and establish a framework for yield farming protocols that takes into account pool structure, accepted token types, and implemented strategies. Using our framework, we characterize major yield aggregators in the market including Yearn Finance, Beefy, and Badger DAO. Moreover, we discuss anecdotal attacks against yield aggregators and generalize a number of risks associated with yield farming.

q-fin.PM↗

arXiv2022

The Energy Footprint of Blockchain Consensus Mechanisms Beyond Proof-of-Work

Popular distributed ledger technology (DLT) systems using proof-of-work (PoW) for Sybil attack resistance have extreme energy requirements, drawing stern criticism from academia, businesses, and the media. DLT systems building on alternative consensus mechanisms, foremost proof-of-stake (PoS), aim to address this downside. In this paper, we take a first step towards comparing the energy requirements of such systems to understand whether they achieve this goal equally well. While multiple studies have been undertaken that analyze the energy demands of individual Blockchains, little comparative work has been done. We approach this research question by formalizing a basic consumption model for PoS blockchains. Applying this model to six archetypal blockchains generates three main findings: First, we confirm the concerns around the energy footprint of PoW by showing that Bitcoin's energy consumption exceeds the energy consumption of all PoS-based systems analyzed by at least three orders of magnitude. Second, we illustrate that there are significant differences in energy consumption among the PoSbased systems analyzed, with permissionless systems having an overall larger energy footprint. Third, we point out that the type of hardware that validators use has a considerable impact on whether PoS blockchains' energy consumption is comparable with or considerably larger than that of centralized, non-DLT systems.

cs.DC↗

arXiv2022

SoK: Yield Aggregators in DeFi

Yield farming has been an immensely popular activity for cryptocurrency holders since the explosion of Decentralized Finance (DeFi) in the summer of 2020. In this Systematization of Knowledge (SoK), we study a general framework for yield farming strategies with empirical analysis. First, we summarize the fundamentals of yield farming by focusing on the protocols and tokens used by aggregators. We then examine the sources of yield and translate those into three example yield farming strategies, followed by the simulations of yield farming performance, based on these strategies. We further compare four major yield aggregrators -- Idle, Pickle, Harvest and Yearn -- in the ecosystem, along with brief introductions of others. We systematize their strategies and revenue models, and conduct an empirical analysis with on-chain data from example vaults, to find a plausible connection between data anomalies and historical events. Finally, we discuss the benefits and risks of yield aggregators.

q-fin.PM↗

arXiv2021

A Game-Theoretic Analysis of Cross-Ledger Swaps with Packetized Payments

We propose a game-theoretic framework to study the outcomes of packetized payments, a cross-ledger transaction protocol, with strategic and possibly malicious agents. We derive the transaction failure rate and demonstrate that without disciplinary mechanisms, packetized payments are likely to be incomplete. Our analysis suggests that collateral deposits can prevent malicious agents from taking advantage of the protocol. We further infer that the deposit amount should depend on the underlying asset price volatility or that it should be dynamically adjusted as the price changes.

cs.GT↗

arXiv2021

Liquidations: DeFi on a Knife-edge

The trustless nature of permissionless blockchains renders overcollateralization a key safety component relied upon by decentralized finance (DeFi) protocols. Nonetheless, factors such as price volatility may undermine this mechanism. In order to protect protocols from suffering losses, undercollateralized positions can be liquidated. In this paper, we present the first in-depth empirical analysis of liquidations on protocols for loanable funds (PLFs). We examine Compound, one of the most widely used PLFs, for a period starting from its conception to September 2020. We analyze participants' behavior and risk-appetite in particular, to elucidate recent developments in the dynamics of the protocol. Furthermore, we assess how this has changed with a modification in Compound's incentive structure and show that variations of only 3% in an asset's dollar price can result in over 10m USD becoming liquidable. To further understand the implications of this, we investigate the efficiency of liquidators. We find that liquidators' efficiency has improved significantly over time, with currently over 70% of liquidable positions being immediately liquidated. Lastly, we provide a discussion on how a false sense of security fostered by a misconception of the stability of non-custodial stablecoins, increases the overall liquidation risk faced by Compound participants.

q-fin.GN↗

arXiv2021

A Game-Theoretic Analysis of Cross-Chain Atomic Swaps with HTLCs

To achieve interoperability between unconnected ledgers, hash time lock contracts (HTLCs) are commonly used for cross-chain asset exchange. The solution tolerates transaction failure, and can "make the best out of worst'' by allowing transacting agents to at least keep their original assets in case of an abort. Nonetheless, as an undesired outcome, reoccurring transaction failures prompt a critical and analytical examination of the protocol. In this study, we propose a game-theoretic framework to study the strategic behaviors of agents taking part in cross-chain atomic swaps implemented with HTLCs. We study the success rate of the transaction as a function of the exchange rate of the swap, the token price and its volatility, among other variables. We demonstrate that in an attempt to maximize one's own utility as asset price changes, either agent might withdraw from the swap. An extension of our model confirms that collateral deposits can improve the transaction success rate, motivating further research towards collateralization without a trusted third party. A second model variation suggests that a swap is more likely to succeed when agents dynamically adjust the exchange rate in response to price fluctuations.

cs.GT↗

arXiv2021

Jack The Rippler: Arbitrage on the Decentralized Exchange of the XRP Ledger

The XRP Ledger (XRPL) is a peer-to-peer cryptographic ledger. It features a decentralized exchange (DEX) where network participants can issue and trade user-defined digital assets and currencies. We present Jack the Rippler, a bot that identifies and exploits arbitrage opportunities on the XRPL DEX. We describe Jack's arbitrage process and discuss risks associated with using arbitrage bots.

cs.CR↗

arXiv2021

Dual Skip Connections Minimize the False Positive Rate of Lung Nodule Detection in CT images

Pulmonary cancer is one of the most commonly diagnosed and fatal cancers and is often diagnosed by incidental findings on computed tomography. Automated pulmonary nodule detection is an essential part of computer-aided diagnosis, which is still facing great challenges and difficulties to quickly and accurately locate the exact nodules' positions. This paper proposes a dual skip connection upsampling strategy based on Dual Path network in a U-Net structure generating multiscale feature maps, which aims to minimize the ratio of false positives and maximize the sensitivity for lesion detection of nodules. The results show that our new upsampling strategy improves the performance by having 85.3% sensitivity at 4 FROC per image compared to 84.2% for the regular upsampling strategy or 81.2% for VGG16-based Faster-R-CNN.

eess.IV↗

arXiv2021

Adaptive Hypergraph Convolutional Network for No-Reference 360-degree Image Quality Assessment

In no-reference 360-degree image quality assessment (NR 360IQA), graph convolutional networks (GCNs), which model interactions between viewports through graphs, have achieved impressive performance. However, prevailing GCN-based NR 360IQA methods suffer from three main limitations. First, they only use high-level features of the distorted image to regress the quality score, while the human visual system (HVS) scores the image based on hierarchical features. Second, they simplify complex high-order interactions between viewports in a pairwise fashion through graphs. Third, in the graph construction, they only consider spatial locations of viewports, ignoring its content characteristics. Accordingly, to address these issues, we propose an adaptive hypergraph convolutional network for NR 360IQA, denoted as AHGCN. Specifically, we first design a multi-level viewport descriptor for extracting hierarchical representations from viewports. Then, we model interactions between viewports through hypergraphs, where each hyperedge connects two or more viewports. In the hypergraph construction, we build a location-based hyperedge and a content-based hyperedge for each viewport. Experimental results on two public 360IQA databases demonstrate that our proposed approach has a clear advantage over state-of-the-art full-reference and no-reference IQA models.

eess.IV↗

arXiv2021

LIQA: Lifelong Blind Image Quality Assessment

Existing blind image quality assessment (BIQA) methods are mostly designed in a disposable way and cannot evolve with unseen distortions adaptively, which greatly limits the deployment and application of BIQA models in real-world scenarios. To address this problem, we propose a novel Lifelong blind Image Quality Assessment (LIQA) approach, targeting to achieve the lifelong learning of BIQA. Without accessing to previous training data, our proposed LIQA can not only learn new distortions, but also mitigate the catastrophic forgetting of seen distortions. Specifically, we adopt the Split-and-Merge distillation strategy to train a single-head network that makes task-agnostic predictions. In the split stage, we first employ a distortion-specific generator to obtain the pseudo features of each seen distortion. Then, we use an auxiliary multi-head regression network to generate the predicted quality of each seen distortion. In the merge stage, we replay the pseudo features paired with pseudo labels to distill the knowledge of multiple heads, which can build the final regressed single head. Experimental results demonstrate that the proposed LIQA method can handle the continuous shifts of different distortion types and even datasets. More importantly, our LIQA model can achieve stable performance even if the task sequence is long.

cs.MM↗

arXiv2021

No-Reference Quality Assessment for 360-degree Images by Analysis of Multi-frequency Information and Local-global Naturalness

360-degree/omnidirectional images (OIs) have achieved remarkable attentions due to the increasing applications of virtual reality (VR). Compared to conventional 2D images, OIs can provide more immersive experience to consumers, benefitting from the higher resolution and plentiful field of views (FoVs). Moreover, observing OIs is usually in the head mounted display (HMD) without references. Therefore, an efficient blind quality assessment method, which is specifically designed for 360-degree images, is urgently desired. In this paper, motivated by the characteristics of the human visual system (HVS) and the viewing process of VR visual contents, we propose a novel and effective no-reference omnidirectional image quality assessment (NR OIQA) algorithm by Multi-Frequency Information and Local-Global Naturalness (MFILGN). Specifically, inspired by the frequency-dependent property of visual cortex, we first decompose the projected equirectangular projection (ERP) maps into wavelet subbands. Then, the entropy intensities of low and high frequency subbands are exploited to measure the multi-frequency information of OIs. Besides, except for considering the global naturalness of ERP maps, owing to the browsed FoVs, we extract the natural scene statistics features from each viewport image as the measure of local naturalness. With the proposed multi-frequency information measurement and local-global naturalness measurement, we utilize support vector regression as the final image quality regressor to train the quality evaluation model from visual quality-related features to human ratings. To our knowledge, the proposed model is the first no-reference quality assessment method for 360-degreee images that combines multi-frequency information and image naturalness. Experimental results on two publicly available OIQA databases demonstrate that our proposed MFILGN outperforms state-of-the-art approaches.

cs.CV↗

arXiv2020

Binocular Rivalry Oriented Predictive Auto-Encoding Network for Blind Stereoscopic Image Quality Measurement

Stereoscopic image quality measurement (SIQM) has become increasingly important for guiding stereo image processing and commutation systems due to the widespread usage of 3D contents. Compared with conventional methods which are relied on hand-crafted features, deep learning oriented measurements have achieved remarkable performance in recent years. However, most existing deep SIQM evaluators are not specifically built for stereoscopic contents and consider little prior domain knowledge of the 3D human visual system (HVS) in network design. In this paper, we develop a Predictive Auto-encoDing Network (PAD-Net) for blind/No-Reference stereoscopic image quality measurement. In the first stage, inspired by the predictive coding theory that the cognition system tries to match bottom-up visual signal with top-down predictions, we adopt the encoder-decoder architecture to reconstruct the distorted inputs. Besides, motivated by the binocular rivalry phenomenon, we leverage the likelihood and prior maps generated from the predictive coding process in the Siamese framework for assisting SIQM. In the second stage, quality regression network is applied to the fusion image for acquiring the perceptual quality prediction. The performance of PAD-Net has been extensively evaluated on three benchmark databases and the superiority has been well validated on both symmetrically and asymmetrically distorted stereoscopic images under various distortion types.

cs.MM↗

arXiv2020

Revisiting Transactional Statistics of High-scalability Blockchains

Scalability has been a bottleneck for major blockchains such as Bitcoin and Ethereum. Despite the significantly improved scalability claimed by several high--profile blockchain projects, there has been little effort to understand how their transactional throughput is being used. In this paper, we examine recent network traffic of three major high-scalability blockchains--EOSIO, Tezos and XRP Ledger (XRPL)--over a period of seven months. Our analysis reveals that only a small fraction of the transactions are used for value transfer purposes. In particular, 96% of the transactions on EOSIO were triggered by the airdrop of a currently valueless token; on Tezos, 76% of throughput was used for maintaining consensus; and over 94% of transactions on XRPL carried no economic value. We also identify a persisting airdrop on EOSIO as a DoS attack and detect a two-month-long spam attack on XRPL. The paper explores the different designs of the three blockchains and sheds light on how they could shape user behavior.

cs.CR↗

arXiv2020

Blind Omnidirectional Image Quality Assessment with Viewport Oriented Graph Convolutional Networks

Quality assessment of omnidirectional images has become increasingly urgent due to the rapid growth of virtual reality applications. Different from traditional 2D images and videos, omnidirectional contents can provide consumers with freely changeable viewports and a larger field of view covering the $360^{\circ}\times180^{\circ}$ spherical surface, which makes the objective quality assessment of omnidirectional images more challenging. In this paper, motivated by the characteristics of the human vision system (HVS) and the viewing process of omnidirectional contents, we propose a novel Viewport oriented Graph Convolution Network (VGCN) for blind omnidirectional image quality assessment (IQA). Generally, observers tend to give the subjective rating of a 360-degree image after passing and aggregating different viewports information when browsing the spherical scenery. Therefore, in order to model the mutual dependency of viewports in the omnidirectional image, we build a spatial viewport graph. Specifically, the graph nodes are first defined with selected viewports with higher probabilities to be seen, which is inspired by the HVS that human beings are more sensitive to structural information. Then, these nodes are connected by spatial relations to capture interactions among them. Finally, reasoning on the proposed graph is performed via graph convolutional networks. Moreover, we simultaneously obtain global quality using the entire omnidirectional image without viewport sampling to boost the performance according to the viewing experience. Experimental results demonstrate that our proposed model outperforms state-of-the-art full-reference and no-reference IQA metrics on two public omnidirectional IQA databases.

eess.IV↗

arXiv2020

Carbon Trading with Blockchain

Blockchain has the potential to accelerate the deployment of emissions trading systems (ETS) worldwide and improve upon the efficiency of existing systems. In this paper, we present a model for a permissioned blockchain implementation based on the successful European Union (EU) ETS and discuss its potential advantages over existing technology. We propose an ETS model that is both backwards compatible and future-proof, characterised by interconnectedness, transparency, tamper-resistance and high liquidity. Further, we identify key challenges to implementation of a blockchain ETS, as well as areas of future work required to enable a fully-decentralised blockchain ETS.

cs.CR↗

arXiv2019

Quality Assessment of Stereoscopic 360-degree Images from Multi-viewports

Objective quality assessment of stereoscopic panoramic images becomes a challenging problem owing to the rapid growth of 360-degree contents. Different from traditional 2D image quality assessment (IQA), more complex aspects are involved in 3D omnidirectional IQA, especially unlimited field of view (FoV) and extra depth perception, which brings difficulty to evaluate the quality of experience (QoE) of 3D omnidirectional images. In this paper, we propose a multi-viewport based fullreference stereo 360 IQA model. Due to the freely changeable viewports when browsing in the head-mounted display (HMD), our proposed approach processes the image inside FoV rather than the projected one such as equirectangular projection (ERP). In addition, since overall QoE depends on both image quality and depth perception, we utilize the features estimated by the difference map between left and right views which can reflect disparity. The depth perception features along with binocular image qualities are employed to further predict the overall QoE of 3D 360 images. The experimental results on our public Stereoscopic OmnidirectionaL Image quality assessment Database (SOLID) show that the proposed method achieves a significant improvement over some well-known IQA metrics and can accurately reflect the overall QoE of perceived images.

eess.IV↗

arXiv2019

The Anatomy of a Cryptocurrency Pump-and-Dump Scheme

While pump-and-dump schemes have attracted the attention of cryptocurrency observers and regulators alike, this paper represents the first detailed empirical query of pump-and-dump activities in cryptocurrency markets. We present a case study of a recent pump-and-dump event, investigate 412 pump-and-dump activities organized in Telegram channels from June 17, 2018 to February 26, 2019, and discover patterns in crypto-markets associated with pump-and-dump schemes. We then build a model that predicts the pump likelihood of all coins listed in a crypto-exchange prior to a pump. The model exhibits high precision as well as robustness, and can be used to create a simple, yet very effective trading strategy, which we empirically demonstrate can generate a return as high as 60% on small retail investments within a span of two and half months. The study provides a proof of concept for strategic crypto-trading and sheds light on the application of machine learning for crime detection.

q-fin.TR↗