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Parag Paul

Publications and source records attributed to Parag Paul.

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ZAPs: A Reward Attribution Framework for DeFi Ecosystems with Adversarial-Robust Scoring via Parallel Anomaly Ensemble Detection

Incentive programs are central to user acquisition in decentralized finance, but many reward systems rely on raw volume, transaction count, and wallet count, making them vulnerable to bots and sybil operations. We present ZAPs, a reward attribution framework that combines economic contribution scoring with adversarial robustness. A composite activity score uses protocol-specific percentile normalization to limit whale dominance while preserving differentiation among users. A two-layer weighting mechanism combines protocol share within sector and sector share within the ecosystem, which reduces the profitability of farming small protocols. We show that the maximum reward obtainable from any protocol is bounded by that protocol's global volume share. ZAPs also introduces a four-layer defense stack consisting of transaction-level integrity checks, a parallel anomaly ensemble, post-distribution behavioral memory, and graph-based sybil clustering. The anomaly ensemble combines a one-class reconstruction model with an isolation forest and applies graduated rather than binary penalties. On 1,073 labeled malicious wallets covering 124,638 transactions, the ensemble achieves 0.923 +/- 0.013 ROC-AUC, compared with 0.891 +/- 0.016 for the reconstruction model alone, when the isolation forest is trained on benign wallets. Training it on the pooled population reverses its polarity and removes the ensemble gain. Controlled simulations reduce adversarial reward capture by 30-90 percent while legitimate-user scenarios change by 1-8 percent. Live campaigns recorded a 56 percent reduction in sybil allocation, a 49 percent increase in quality-wallet participation, and a 50 percent reduction in sell pressure.

q-fin.GN

Deep Reputation Scoring in DeFi: zScore-Based Wallet Ranking from Liquidity and Trading Signals

As decentralized finance (DeFi) evolves, distinguishing between user behaviors - liquidity provision versus active trading - has become vital for risk modeling and on-chain reputation. We propose a behavioral scoring framework for Uniswap that assigns two complementary scores: a Liquidity Provision Score that assesses strategic liquidity contributions, and a Swap Behavior Score that reflects trading intent, volatility exposure, and discipline. The scores are constructed using rule-based blueprints that decompose behavior into volume, frequency, holding time, and withdrawal patterns. To handle edge cases and learn feature interactions, we introduce a deep residual neural network with densely connected skip blocks inspired by the U-Net architecture. We also incorporate pool-level context such as total value locked (TVL), fee tiers, and pool size, allowing the system to differentiate similar user behaviors across pools with varying characteristics. Our framework enables context-aware and scalable DeFi user scoring, supporting improved risk assessment and incentive design. Experiments on Uniswap v3 data show its usefulness for user segmentation and protocol-aligned reputation systems. Although we refer to our metric as zScore, it is independently developed and methodologically different from the cross-protocol system proposed by Udupi et al. Our focus is on role-specific behavioral modeling within Uniswap using blueprint logic and supervised learning.

q-fin.GN

zScore: A Universal Decentralised Reputation System for the Blockchain Economy

Modern society functions on trust. The onchain economy, however, is built on the founding principles of trustless peer-to-peer interactions in an adversarial environment without a centralised body of trust and needs a verifiable system to quantify credibility to minimise bad economic activity. We provide a robust framework titled zScore, a core primitive for reputation derived from a wallet's onchain behaviour using state-of-the-art AI neural network models combined with real-world credentials ported onchain through zkTLS. The initial results tested on retroactive data from lending protocols establish a strong correlation between a good zScore and healthy borrowing and repayment behaviour, making it a robust and decentralised alibi for creditworthiness; we highlight significant improvements from previous attempts by protocols like Cred showcasing its robustness. We also present a list of possible applications of our system in Section 5, thereby establishing its utility in rewarding actual value creation while filtering noise and suspicious activity and flagging malicious behaviour by bad actors.

cs.CY