Decentralized Finance

Follow this topic Ask about this topic

Momentum

5 papers in the last four weeks, with none the four weeks before. 0.0% of all new papers.

Jul 13Week of Sep 28

Latest papers 19

Sep 20, 2026cs.LG

ETH-TraceBench: A Large-Scale Event-Stream Benchmark for Ethereum DeFi under Temporal, Protocol, and Contract Shift

Ethereum decentralized finance (DeFi) provides a public, time-stamped record of transaction-level event streams, but the same public symbols can create strong machine-learning shortcuts. We introduce ETH-TraceBench, a benchmark for evaluating Ethereum DeFi representations under temporal, protocol, pool/infrastructure, and symbolic shift. The raw event universe covers January 2021-December 2025 and contains 1.35 billion transactions with logs and 5.01 billion raw log rows. Model evaluation uses a fixed 911,267-instance supervised sample, training on 2021-2024, selecting models on 2025H1, and testing on 2025H2. Simple models perform strongly on the aggregate temporal test: TraceStats-GB reaches 0.953 macro-F1 and TopicEmitterHashMLP 0.959 on the canonical DEX test set. Performance drops sharply under protocol novelty, with macro-F1 of 0.794, 0.743, and 0.766 for TraceStats-GB, TopicEmitterTrace-SGD, and TopicEmitterHashMLP, while strict unseen-pool scores remain 0.927, 0.897, and 0.935. Uniswap v4 and Ekubo v1, both absent from supervised training, are materially harder than the full test. Jointly masking emitter and topic identity reduces DEX macro-F1 to 0.916 and liquidation macro-F1 to 0.774 for TopicEmitterTrace-SGD. A standard Transformer over log-index-ordered events provides no consistent advantage over a deterministic shuffle of the same events, indicating that high aggregate scores can arise without sophisticated chronological modeling. A natural-prevalence audit estimates 2025H2 DEX prevalence among logged Ethereum transactions at about 22.5%, and a deterministic 400-transaction audit finds complete agreement with task label sources and independently re-queried raw-log counts. ETH-TraceBench therefore treats difficult transfer and controlled-input conditions, rather than a single aggregate score, as the main evaluation target.

Kemal Kirtac, Carsten Maple

Department of Computer Science, University College London 66–72 Gower Street, London WC1E 6EA, United Kingdom · Department of Computer Science, University of Warwick Coventry CV4 7AL, United Kingdom · WMG, University of Warwick Coventry CV4 7AL, United Kingdom

Distribution Shift Robustness Benchmark Auditing Time Series Classification Decentralized Finance

Sep 15, 2026q-fin.TR

SAiFE-gym: Model-based Environments for Automated Market Making with Concentrated Liquidity

We present SAiFE_gym, a Python module that provides a collection of simulation environments for studying trading problems in Constant Product Markets (CPMs) with Concentrated Liquidity (CL). These markets give Liquidity Providers (LPs) granular control over how their capital is allocated and enable them to adjust their range of liquidity provision dynamically based on market conditions, which in turn, dictates how they earn fees. We decompose the microstructure of CPMs with CL in interactive components that allow researchers and practitioners to capture various economic settings. We employ a vectorized approach to optimize our environments, making them scalable for high dimensional Reinforcement Learning (RL) workflows that best describe sequential decision problems. We demonstrate the benefits of our environments by evaluating the performance of RL agents in CPMs with CL under uncertainty in market parameters.

Georgios Chionas, Charalampos Kleitsikas, Stefanos Leonardos +2

University of Oxford Oxford, UK

Reinforcement Learning Decentralized Finance Algorithmic Trading

Sep 12, 2026cs.CR

DeFiFusion: Combining Transaction Events with Smart Contracts to Detect Price Manipulation Attacks

Decentralized Finance (DeFi) has emerged as a rapidly growing blockchain-based financial service, where market transaction dynamics and underlying smart contract logic are intricately intertwined. This autonomous interplay, while eliminating centralized intermediaries, significantly expands the vulnerability surface of DeFi protocols to Price Manipulation Attacks (PMAs), which have already inflicted catastrophic financial losses. Despite their gravity, existing detection paradigms suffer from fundamental limitations. Transaction-centric methods lack awareness of contract execution semantics, making them prone to false positives under legitimate market volatility, while static contract analyses ignore real transaction behaviors and frequently report vulnerabilities that are infeasible to exploit in practice. We present DeFiFusion, a dual-modal PMA detection framework that closes this gap by jointly modeling transaction events and smart contract semantics within a unified pipeline. Our core insight is that PMA maliciousness emerges only from the interaction between transaction behaviors and the contract logic they exploit; neither signal suffices in isolation. Accordingly, we derive price-manipulation-aware event encoding for extracting fine-grained temporal and economic features tailored to manipulation patterns. We further introduce LLM-based contract semantic extraction to supply the execution-logic context that prior behavioral methods lack. To fuse these modalities, we propose a Dual-Modal Projection-Fusion Transformer with T5-style relative positional encoding, capturing the cyclic multi-stage execution structures that distinguish PMAs from benign market activity. Extensive experiments demonstrate that DeFiFusion consistently achieves state-of-the-art detection performance, effectively recalling 222 of the 225 PMA cases while maintaining a precision of 96.10%.

Rui Cao, Shaojing Fan, Liming Fang +3

School of Computer Science and Technology, Nanjing University of Aeronautics and Astronautics, China · Department of Electrical and Computer Engineering (ECE), National University of Singapore, Singapore · School of Aerospace Engineering, Nanjing University of Aeronautics and Astronautics, China +2

Financial Fraud Detection Decentralized Finance

Sep 11, 2026cs.LG

DeFiFlowBench: Benchmarking and Improving Safe Executability in Natural-Language DeFi Workflow Synthesis

A structurally valid DeFi workflow can still authorize a costly trade. We introduce DeFiFlowBench, a benchmark of 207 team-authored prompts for natural-language DeFi workflow synthesis. It measures graph coverage, configuration completeness, and declared safety predicates, then tests supported trade configurations on a local EVM. Direct, constrained, and few-shot prompting produce 14-19 unsafe held-out executions per configuration under a fixed 5% price-impact cap. A slippage bound derived from a quote does not prevent the price impact of the order itself. We propose Koan-Safe, which combines a prompt-only intent parser, a replaceable generator, and structural repair with default safety parameters. On 75 held-out workflow prompts, its hybrid variant scores 0.67 on the static safety proxy, compared with 0.33 for the best baseline. Koan-Safe records no unsafe executions on the saved benchmark outputs. A matched-candidate ablation produces 14-17 unsafe executions when enforcement is disabled. Additional tests expose the limits of default injection: permissive existing thresholds can still authorize unsafe trades. A separately evaluated policy cap addresses this failure on a 36-case diagnostic grid. These results support explicit trade protections and execution-based evaluation, while distinguishing declared safety from a general guarantee.

Abhinav Rajeev Kumar, Harshit Arora, Varun Singh +1

SRM Institute of Science and Technology

LLM Safety Benchmarks LLM Guardrails Decentralized Finance LLM Safety Evaluation

Sep 8, 2026cs.AI

zScore-N: A Neural Network for On-Chain Wallet Reputation Scoring

Wallet reputation scores decide who receives an airdrop, who can borrow, and who enters an allowlist across decentralised finance. They almost always begin as hand-written formulas: compositions of clamped logarithmic, linear and square-root transforms over behavioural features, with every threshold and point award set by hand. Such a formula is readable and deterministic, but it is piecewise and non-differentiable, it cannot improve as data accumulates, and it cannot distinguish a feature that is genuinely zero from one its pipeline failed to capture. We present zScore-N, the neural network that replaced ours in production. The formula served as its teacher: calibrated against 5,208,952 wallets sampled across 2019-2024 and verified to reproduce production output to within 2.3e-13, it supplies unlimited labelled training data at zero label noise. The trained network reproduces it to 0.58 points RMSE on the 1000-point scale (R^2 = 0.99997), against 2.25 for gradient-boosted trees and 28.04 for linear regression on identical features and splits. Trained with missing-value masks against uncorrupted targets, it halves the error that incomplete data introduces: at 10% feature-level missingness the formula drifts 51.4 points from its own complete-data output with a systematic -12.5 point bias, while the network drifts 17.9. The network carries the score at production scale, across a population of millions of wallets spanning six orders of magnitude in size and activity.

Girish G N, Ashutosh Sahoo, Akshay SP +2

Zeru AI

Decentralized Finance

Jul 30, 2026q-fin.GN

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.

Girish G N, Ashutosh Sahoo, Ajay Bhat +4

Zeru Finance · The Ohio State University, USA

Adversarial Robustness Financial Fraud Detection Decentralized Finance Unsupervised Anomaly Detection

Jul 12, 2026cs.LG

Reinforcement Learning for Execution under Dynamic Fees in a Closed-Loop DEX Simulator

Trader-facing dynamic fees are increasingly proposed for automated market makers (AMMs), but historical data do not identify how order flow would respond: trader-facing fees do not vary, trader types are latent, and a replayed tape is not a sequential decision environment. We therefore construct a minimal closed-loop simulator in which the missing signal exists by construction: two constant-product pools repriced by an equilibrium-inspired dynamic-fee rule, fee-sensitive noise flow, and closed-form CEX--AMM arbitrage. Equilibrium is used as a closure principle, not as an object the trader learns. Against a tuned benchmark ladder of schedule, planning, lookahead, and tabular policies, a small DQN is the only evaluated valid policy whose paired improvement over tuned one-step routing excludes zero. On a reserved final block of 1{,}000 seeds with completion forced to 1.0 for every policy, it reduces implementation shortfall under every tested intra-step ordering, by

13.3\bps

of order notional under the pre-specified agent-last ordering, and the edge is concentrated in, and learned from, dynamic-fee environments: under constant fees the paired difference is indistinguishable from zero. The result is model-conditioned counterfactual evidence about execution control in AMMs, not evidence about historical traders, equilibrium play, or deployable profit.

Wen-Ting Wang

Decentralized Finance Finance Algorithmic Trading

Jul 9, 2026cs.LG

MPFlow: Learning Budgeted Max-Flow Optimization on the Lightning Network with Deep Graph Reinforcement Learning

We address liquidity placement in the Bitcoin Lightning Network (LN): given a fixed budget, which channels should a node open to maximize its routing capacity? We cast this as a budget-constrained combinatorial optimization problem on graphs, selecting

k

edge additions that maximize

s

--

t

max-flow, a theory-grounded measure of routing capacity, and solve it with graph reinforcement learning. Our lightweight agent combines a message-passing policy network with proximal policy optimization (PPO) and action masking, and is trained under a hub-exclusion curriculum: the network's top hubs are removed from training subgraphs, forcing the policy to learn capacity-aware placement rather than hub attachment. In extensive experiments on real Lightning Network snapshots, our method consistently outperforms strong heuristic baselines on the max-flow objective across multiple seeds and unseen graphs. The agent has been deployed in production for peer recommendations, executing 4640 channel-open decisions that cumulatively allocate 267.3 BTC over $16 million across 30 managed nodes.

Harrison Rush, Vincent Davis, Simone Antonelli +3

Amboss Technologies, Green Cove Springs, USA · CISPA Helmholtz Center for Information Security · Stillmark, San Francisco, USA +1

Combinatorial Optimization Decentralized Finance RL for Combinatorial Optimization

Jun 24, 2026cs.CR

CyberChainBench: Can AI Agents Secure Smart Contracts Against Real-World On-Chain Vulnerabilities?

We present CyberChainBench, a benchmark for evaluating LLM-based agents on smart contract security across three complementary tasks: vulnerability detection, exploit generation, and patch synthesis. Built from 541 real-world exploit incidents from DeFiHackLabs spanning 9 EVM chains, the benchmark provides end-to-end on-chain evaluation where agents interact with historical blockchain state through isolated evaluation environments orchestrated by Harbor, using tools to read code, trace transactions, and validate exploits on mainnet forks. Each case is anchored to a specific block and includes structured ground truth covering vulnerability type, localization, and attacker profit. Exploits are graded by economic impact on historical forks; patches are validated by replaying historical attacks and legitimate transactions as fail-to-pass test oracles on a proxy-upgradeable subset. We define a five-type vulnerability taxonomy and evaluate multiple agent--model configurations. Results reveal a clear difficulty gradient: the best configuration scores 37.5% on detection, 43.7% on exploitation, but only 23.4% on patching, with the top agent (Codex with GPT-5.5) realizing $57.4M in total exploit profit across the 200-case exploit set at a cost of $2.39 per case.

Jintao Huang, Fengqing Jiang, Radha Poovendran +1

1The Ohio State University · University of Washington

Automated Program Repair Software Vulnerability Detection Software Security AI Agent Security Benchmarks Decentralized Finance

Jun 17, 2026cs.AI

DeXposure-Claw: An Agentic System for DeFi Risk Supervision

Decentralized finance exposes supervisors to fast-moving, networked credit risks. General-purpose LLM agents fit this setting poorly: they over-read weak evidence and recommend high-stakes interventions, while existing evaluations offer no regulator-aligned way to measure the resulting false alarms. We introduce DeXposure-Claw, a forecast-grounded agentic supervision system that routes LLM decisions through structured evidence: (1) DeXposure-FM, a graph time-series foundation model, forecasts future exposure networks; (2) deterministic monitors and stress scenarios then turn those forecasts into typed alerts, attribution signals, and scenario evidence; and (3) data-health and confidence gates constrain escalation before DeXposure-Claw emits auditable supervisory tickets with rationales. We further develop DeXposure-Bench, a six-axis evaluation harness, whose decision axis scores tickets against a regulator-aligned absolute-loss ground truth and an explicit false-intervention rate. Experiments on five years of weekly real data fully support our system. Code is at https://github.com/EVIEHub/DeXposure-Claw.

Aijie Shu, Bowei Chen, Wenbin Wu +2

University of Edinburgh · University of Glasgow · University of Cambridge

Financial Services AI Agent Monitoring Decentralized Finance

Jun 9, 2026cs.CR

Post-Quantum Secure Federated DeFi for Inclusive Banking

Recent advances in error-corrected qubits have accelerated the timeline for practical quantum computing. It poses a threat to cryptographic primitives used to secure financial systems, government infrastructure, communication networks, and DeFi (Decentralized Finance) ecosystems. This paper introduces a post-quantum secure federated DeFi framework that enables inter-bank collaboration to improve the inclusivity of individuals underserved by local lenders due to limited financial histories. Multiple banks contribute encrypted information batches to a virtual server, where lattice-based Fully Homomorphic Encryption (FHE) enables end-to-end homomorphic computation. The server fuses local data-driven probabilistic assessments, expert beliefs, and verifiable evidence generated by the NASA-IBM Prithvi Geospatial Foundation Model (GFM), in encrypted format. Decentralized technologies are employed to ensure tamper-proof evidence and auditable accountability for all encrypted data exchanges between institutions and the server. The framework is tested on agricultural lending decisions for rural borrowers in Virginia.

Swati Sachan, Dale Fickett, Richard Buchinger +1

AI FinTech Group, University of Liverpool, L69 3BX, UK · University of Richmond, Richmond, VA 23173, USA · Chain Crunch Labs based in Finsbury, London, UK +1

Financial Services Decentralized Finance Credit Scoring Post-Quantum Cryptography

Jun 6, 2026q-fin.TR

Post-Rejection Follow-up Sampling: A Methodology for Counterfactual Outcome Measurement in Algorithmic DEX Trading

Algorithmic trading systems on decentralised exchanges (DEXs) reject most candidate tokens they evaluate. The counterfactual outcome of rejected candidates (what would have happened had the system entered) is rarely measured. This paper introduces Post-Rejection Follow-up Sampling (PRFS). A separate tracking subsystem samples each rejected token's price and liquidity at a configurable cadence, over a horizon of up to twenty-four hours. PRFS produces the data needed to evaluate filter precision against actual market outcomes of rejected candidates, not against synthetic backtest reconstructions. The methodology, data architecture, and deposit format are described in Section III. The companion dataset contains 67,000 forward-outcome observation rows across 2,997 rejection events spanning 457 unique mints, collected over a continuous eight-day window (2026-04-10 to 2026-04-19, UTC). Approximately 55 percent of rejection events receive at least one forward observation; coverage at the mint level is complete. The principal binding constraint on downstream classification is per-event horizon density, not event-level coverage. PRFS is dataset-independent. It generalises to any algorithmic decision system in which rejections substantially outnumber executions.

Arati Uday Kamat

Independent Researcher

Counterfactual Evaluation Decentralized Finance Finance Selective Labels Algorithmic Trading

May 27, 2026cs.AI

Paper Agents, Paper Gains: An Empirical Analysis of DeFi Investment Agents

DeFi investment agents, systems that use AI for autonomous on-chain trading, have attained over USD 3 billion in combined token valuations since late 2024. We survey over 1,900 AI-tagged crypto projects, filter to investment-focused agents, and curate 10 representative projects spanning strategy and observability dimensions. We then conduct a deep-dive architectural analysis of two prominent agent frameworks, ElizaOS and Virtuals Protocol, and a quantitative on-chain performance analysis of 11 Solana-based agent treasuries with publicly attributable trading activity, covering 925,323 token holders. We find that current deployments remain early and heterogeneous: (1) in our sample, many projects do not yet provide clear evidence of autonomous trade execution, and developer interviews suggest that many visible deployments remain basic API integrations; (2) agent treasuries retain over USD 30M in paper gains while token holders collectively lost USD 191.7M, with the top 1% of wallets capturing 81.4% of all gains (USD 1.81B); (3) token valuations are weakly connected to treasury fundamentals, with market-cap-to-AUM ratios exceeding 10,000x versus below 1x for established DeFi protocols; and (4) aggregate user gains peaked at USD 2.4B before declining to net losses, with median returns negative on every platform and tokens declining 93% on average from all-time highs. We interpret these outcomes as characteristic of a permissionless, first-generation market in which open infrastructure enables rapid experimentation but also allows naive or speculative agents to launch before robust standards for autonomy, performance, and stakeholder alignment emerge. We therefore propose a maturity framework along three dimensions: autonomous execution, risk-adjusted profitability, and stakeholder alignment, to characterize the gap between current deployments and future investment-grade agent systems.

Jay Yu, Amy Zhao, Danning Sui

Pantera Capital · Stanford University · IC3 +1

Financial Services AI Agent Evaluation Decentralized Finance Finance Algorithmic Trading

Apr 30, 2026cs.AI

Intent2Tx: Benchmarking LLMs for Translating Natural Language Intents into Ethereum Transactions

The emergence of Large Language Models (LLMs) offers a transformative interface for Web3, yet existing benchmarks fail to capture the complexity of translating high-level user intents into functionally correct, state-dependent on-chain transactions. We present \textsc{Intent2Tx}, a high-fidelity benchmark featuring 29,921 single-step and 1,575 multi-step instances meticulously derived from 300 days of real-world Ethereum mainnet traces. Unlike prior works that rely on synthetic instructions, \textsc{Intent2Tx} grounds natural language intents in real-world protocol interactions across 11 categories, including diverse long-tail Decentralized Finance (DeFi) primitives. To enable rigorous evaluation, we propose an execution-aware framework that transcends surface-level text matching by employing differential state analysis on forked mainnet environments. Our extensive evaluation of 16 state-of-the-art LLMs reveals that while scaling and retrieval-augmentation enhance logical consistency and parameter precision, current models struggle with out-of-distribution generalization and multi-step planning. Crucially, our execution-based analysis demonstrates that syntactically valid outputs often fail to achieve intended state transitions, highlighting a significant gap in current "reasoning-to-execution" capabilities. \textsc{Intent2Tx} serves as a critical foundation for developing autonomous, reliable agents in intent-centric Web3 ecosystems. Code and data: https://anonymous.4open.science/r/Intent2Tx_Bench-97FF .

Zhuoran Pan, Yue Li, Zhi Guan +2

School of Computer Science Peking University Beijing, PA 100871 · Taiyuan University of Technology Taiyuan, Shanxi, PA 030024 · Peking University Beijing, PA 100871

Financial Services LLM Evaluation Decentralized Finance

Apr 22, 2026cs.LG

Towards Event-Aware Forecasting in DeFi: Insights from On-chain Automated Market Maker Protocols

Automated Market Makers (AMMs), as a core infrastructure of decentralized finance (DeFi), uniquely drive on-chain asset pricing through a deterministic reserve ratio mechanism. Unlike traditional markets, AMM price dynamics is triggered largely by on-chain events (e.g., swap) that change the reserve ratio, rather than by continuous responses to off-chain information. This makes event-level analysis crucial for understanding price formation mechanisms in AMMs. However, existing research generally neglects the micro-structural dynamics at the AMMs level, lacking both a comprehensive dataset covering multiple protocols with fine-grained event classification and an effective framework for event-aware modeling. To fill this gap, we construct a dataset containing 8.9 million on-chain event records from four representative AMMs protocols: Pendle, Uniswap v3, Aave and Morpho, with precise annotations of transaction type and block height timestamps. Furthermore, we propose an Uncertainty Weighted Mean Squared Error (UWM) loss function, which incorporates the block interval regression term into the traditional Time-Point Process (TPP) objective function by weighting the uncertainty with homoscedasticity. Extensive experiments on eight advanced TPP architectures demonstrate that this loss function reduces the time prediction error by an average of 56.41% while maintaining the accuracy of event type prediction, establishing a robust benchmark for event-aware prediction in the AMMs ecosystem. This work provides the necessary data foundation and methodological framework for modeling the discreteness and event-driven characteristics of on-chain price discovery. All datasets and source code are publicly available. https://github.com/yosen-king/Deep-AMM-Events

Huaiyu Jia, Jiehshun You, Yizhi Luo +2

HKUST(GZ) · GUANGZHOU, China · Hong Kong Polytechnic University +1

Event Time Prediction Temporal Point Processes Financial Services Decentralized Finance

Apr 16, 2026cs.LG

From Risk to Rescue: An Agentic Survival Analysis Framework for Liquidation Prevention

Decentralized Finance (DeFi) lending protocols like Aave v3 rely on over-collateralization to secure loans, yet users frequently face liquidation due to volatile market conditions. Existing risk management tools utilize static health-factor thresholds, which are reactive and fail to distinguish between administrative "dust" cleanup and genuine insolvency. In this work, we propose an autonomous agent that leverages time-to-event (survival) analysis and moves beyond prediction to execution. Unlike passive risk signals, this agent perceives risk, simulates counterfactual futures, and executes protocol-faithful interventions to proactively prevent liquidations. We introduce a return period metric derived from a numerically stable XGBoost Cox proportional hazards model to normalize risk across transaction types, coupled with a volatility-adjusted trend score to filter transient market noise. To select optimal interventions, we implement a counterfactual optimization loop that simulates potential user actions to find the minimum capital required to mitigate risk. We validate our approach using a high-fidelity, protocol-faithful Aave v3 simulator on a cohort of 4,882 high-risk user profiles. The results demonstrate the agent's ability to prevent liquidations in imminent-risk scenarios where static rules fail, effectively "saving the unsavable" while maintaining a zero worsening rate, providing a critical safety guarantee often missing in autonomous financial agents. Furthermore, the system successfully differentiates between actionable financial risks and negligible dust events, optimizing capital efficiency where static rules fail.

Fernando Spadea, Oshani Seneviratne

Rensselaer Polytechnic Institute Troy, NY, USA

Financial Services Decentralized Finance Agentic AI

Mar 27, 2026cs.CR

Knowdit: Agentic Smart Contract Vulnerability Detection with Auditing Knowledge Summarization

Smart contracts govern billions of dollars in decentralized finance (DeFi), yet automated vulnerability detection remains challenging because many vulnerabilities are tightly coupled with project-specific business logic. We observe that recurring vulnerabilities across diverse DeFi business models often share the same underlying economic mechanisms, which we term DeFi semantics, and that capturing these shared abstractions can enable more systematic auditing. Building on this insight, we propose Knowdit, a knowledge-driven, agentic workflow for smart contract vulnerability detection. Knowdit first constructs an auditing knowledge graph from historical human audit reports, linking fine-grained DeFi semantics with recurring vulnerability patterns. Given a new project, a multi-agent pipeline leverages this knowledge through an iterative loop of specification generation, Proof-of-Concept (PoC) synthesis, PoC execution, and finding reflection, driven by a shared repository index. We evaluate Knowdit on 11 recent Code4rena projects with 84 ground-truth vulnerabilities. Knowdit detects all 21 high-severity and 90% of medium-severity vulnerabilities without false positives, fully covering eight projects, significantly outperforming all baselines. Applied to seven real-world projects, Knowdit further discovers 9 high- and 36 medium-severity previously unknown vulnerabilities, securing millions in liquidity and proving its outstanding performance.

Ziqiao Kong, Wanxu Xia, Chong Wang +6

Nanyang Technological University · Beihang University · Independent Researcher +4

Financial Services Software Vulnerability Detection Decentralized Finance

Feb 3, 2026cs.LG

DeXposure-FM: A Time-series, Graph Foundation Model for Credit Exposures and Stability on Decentralized Financial Networks

Credit exposure in Decentralized Finance (DeFi) is often implicit and token-mediated, creating a dense web of inter-protocol dependencies. Thus, a shock to one token may result in significant and uncontrolled contagion effects. As the DeFi ecosystem becomes increasingly linked with traditional financial infrastructure through instruments, such as stablecoins, the risk posed by this dynamic demands more powerful quantification tools. We introduce DeXposure-FM, the first time-series, graph foundation model for measuring and forecasting inter-protocol credit exposure on DeFi networks, to the best of our knowledge. Employing a graph-tabular encoder, with pre-trained weight initialization, and multiple task-specific heads, DeXposure-FM is trained on the DeXposure dataset that has 43.7 million data entries, across 4,300+ protocols on 602 blockchains, covering 24,300+ unique tokens. The training is operationalized for credit-exposure forecasting, predicting the joint dynamics of (1) protocol-level flows, and (2) the topology and weights of credit-exposure links. The DeXposure-FM is empirically validated on two machine learning benchmarks; it consistently outperforms the state-of-the-art approaches, including a graph foundation model and temporal graph neural networks. DeXposure-FM further produces financial economics tools that support macroprudential monitoring and scenario-based DeFi stress testing, by enabling protocol-level systemic-importance scores, sector-level spillover and concentration measures via a forecast-then-measure pipeline. Empirical verification fully supports our financial economics tools. The model and code have been publicly available. Model: https://huggingface.co/EVIEHub/DeXposure-FM. Code: https://github.com/EVIEHub/DeXposure-FM.

Aijie Shu, Wenbin Wu, Gbenga Ibikunle +1

School of Informatics, University of Edinburgh, United Kingdom · Cambridge Centre for Alternative Finance, Judge Business School, University of Cambridge, United Kingdom · Business School, University of Edinburgh, United Kingdom +1

Financial Services Decentralized Finance Graph Foundation Models Time-Series Foundation Models Finance

Dec 7, 2025cs.CE

TxSum: User-Centered Ethereum Transaction Understanding with Micro-Level Semantic Grounding

Understanding the economic intent of Ethereum transactions is critical for user safety, yet current tools expose only raw on-chain data or surface-level intent, leading to widespread ``blind signing'' (approving transactions without understanding them). Through interviews with 16 Web3 users, we find that effective explanations should be structured, risk-aware, and grounded at the token-flow level. Motivated by these findings, we formulate TxSum, a new domain-grounded NLP task for DeFi transaction explanation, and construct a dataset of 187 complex Ethereum transactions with 2,375 token-flow annotations and transaction-level summaries. We further introduce MATEX, a grounded multi-agent framework for high-stakes transaction explanation. It selectively retrieves external knowledge under uncertainty and audits explanations against raw traces to improve token-flow-level factual consistency. MATEX achieves the strongest overall explanation quality, especially on micro-level factuality and intent quality. It improves user comprehension on complex transactions from 52.9% to 76.5% over the strongest baseline and raises malicious-transaction rejection from 36.0% to 88.0%, while maintaining a low false-rejection rate on benign transactions.

Zifan Peng, Jingyi Zheng, Yule Liu +8

1Hong Kong University of Science and Technology (Guangzhou) · 3Independent Researcher · University of North Texas +2

Financial Services Grounded Text Generation Explainable Artificial Intelligence Decentralized Finance Explainability Evaluation Finance