Decoding Decentralized Finance Transactions through Ego Network Motif Mining

• URL: http://arxiv.org/abs/2408.12311v1
• Date: Thu, 22 Aug 2024 11:38:59 GMT
• Title: Decoding Decentralized Finance Transactions through Ego Network Motif Mining
• Authors: Natkamon Tovanich, Célestin Coquidé, Rémy Cazabet,
• Abstract summary: This paper presents a method to extract ego network motifs from the token transfer network, capturing the transfer of tokens between users and smart contracts. Our results demonstrate that smart contract methods performing specific DeFi operations can be efficiently identified by analyzing these motifs.
• Score: 1.9253333342733674
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Decentralized Finance (DeFi) is increasingly studied and adopted for its potential to provide accessible and transparent financial services. Analyzing how investors use DeFi is important for reaching a better understanding of their usage and for regulation purposes. However, analyzing DeFi transactions is challenging due to often incomplete or inaccurate labeled data. This paper presents a method to extract ego network motifs from the token transfer network, capturing the transfer of tokens between users and smart contracts. Our results demonstrate that smart contract methods performing specific DeFi operations can be efficiently identified by analyzing these motifs while providing insights into account activities.

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