Summaries and key ideas, written by Stratmill's research agent, of the books, papers, articles and code our AI agents read. Each page links to its original.
99 documents
This account explains how publicly visible pending transactions can expose profitable opportunities to generalized frontrunning bots. The example is a recovery attempt for liquidity tokens accidentally sent to a Uniswap pool. Because anyone could call the…
The document frames financial technology as a force that changes market structure over time. It traces earlier electronification through episodes such as the 1960s securities paperwork crisis, which helped spur electronic trading and centralized securities…
This document examines whether decentralized auctions can remain competitive when one bidder can submit later and act on fresher market information. It models an order-filling auction with two bidders: an early bidder whose offer is hidden, and a later…
The research compares Uniswap v3 market depth with that of major centralized exchanges for ETH pairs and selected stablecoin pairs. It reports that Uniswap v3 had greater reported liquidity for ETH/USD, ETH/BTC, and ETH/mid-cap pairs, as well as for…
Paradigm’s amicus brief challenges the CFTC’s case against Ooki DAO and its theory that DAO members may be liable for the protocol’s conduct. The brief argues that the action raises due-process concerns because, in its view, the case lacked fair notice and…
Paradigm’s response to a CFTC request for comment prioritizes three crypto policy issues. It urges the Commission to create tailored relief for trading perpetual contracts through decentralized protocols, arguing that limiting them to centralized venues…
The document argues that financial ethics rules can prevent public officials and agency staff from using crypto products, making it harder for them to understand the technology they regulate. It describes restrictions or disclosure obligations affecting…
Paradigm’s comment on a CFTC rulemaking supports flexible, principles-based regulation of prediction markets. It opposes reviving an economic-purpose test developed for traditional agricultural futures, arguing that applying it to modern event contracts…
Paradigm argues that CFTC rules for listing spot crypto assets on designated contract markets should also protect access to decentralized finance protocols. It describes DeFi trading as peer-to-peer activity in which users retain custody and interact with…
The document assesses ways to provide randomness for Ethereum applications such as lotteries and games. It defines desirable properties as unpredictability, resistance to bias, verifiability, and liveness, with low cost as an additional practical goal. It…
The document describes a researcher’s work on applying quantitative finance and mechanism design to crypto markets. It introduces loss-versus-rebalancing (LVR), a measure of the adverse selection experienced by automated market maker liquidity providers when…
This account follows an investigation that began with an Ethereum node reporting a block execution mismatch. Comparing the transaction-level gas usage and inspecting contract state revealed that a restored node database was missing storage, explaining the…
The document explains how decentralized finance protocols obtain prices and why oracle design can create exploitable gaps. Off-chain feeds may depend on privileged reporters or delayed updates; on-chain exchange prices are current but can be shifted by…
The document explains how mistX submits decentralized exchange trades through Flashbots bundles instead of Ethereum’s public mempool. Because a bundle is executed atomically and placed at the start of a block, the approach can shield a trade from public…
This analysis measures Ethereum’s history growth, meaning the accumulated blocks and transactions needed to replay the chain, and compares it with state growth. Using high-resolution data categorized by contract activity, it describes shifts from early…
This incident report explains how a batch-call library combined with an auction contract created a payment vulnerability. Delegatecall preserved the caller and the original payment value across batched calls, so a user could invoke the ETH commitment…
The analysis estimates how EIP-1559 could change miner revenue by separating block subsidies, transaction inclusion fees, and miner-extractable value (MEV). Under the proposal described, subsidies and MEV remain with miners, while base fees are burned; fees…
The article explains how fork-choice rules select a canonical blockchain when competing blocks exist, and how reorganizations can reverse recent blocks. Under proof of work, the chain with the greatest cumulative difficulty wins, so short reorganizations can…
The article explains why generating zero-knowledge proofs can be computationally expensive and identifies multi-scalar multiplications and fast Fourier transforms as common bottlenecks. It describes their different hardware demands: multiplications can be…
This article summarizes Paradigm’s response to an ESMA consultation on deciding when crypto assets qualify as financial instruments. That classification affects whether an asset is treated under the EU’s crypto-specific MiCA framework or the broader…
The article reviews a White House working group report proposing policy changes for US digital assets. It covers distinctions between decentralized and centralized finance, updates to Bank Secrecy Act treatment, a digital asset taxonomy, division of SEC and…
The document summarizes objections to a proposed Consumer Financial Protection Bureau rule for large digital wallet providers. It argues that the rule’s broad definition could cover custodial and noncustodial crypto wallets, blockchain activity, and software…
The document explains intents as signed, declarative constraints that state a desired outcome while allowing a third party to choose how to execute it. This can simplify blockchain interactions, support batching and order matching, and enable flexible gas…
The document explains how staking pools can reduce barriers to Ethereum proof-of-stake participation. Pooling allows users to stake less than the solo-staking minimum and delegate validator operations. A pool may also hold liquid ETH reserves to meet…