Hardhik Mohanty

Hardhik Mohanty, Bhaskar Krishnamachari

USDC and USDT are the dominant stablecoins pegged to \$1 with a total market capitalization of over \$300B and rising. Stablecoins make dollar value globally accessible with secure transfer and settlement. Yet in practice, these stablecoins experience periods of stress and de-pegging from their \$1 target, posing significant systemic risks. The behavior of market participants during these stress events and the collective actions that either restore or break the peg are not well understood. This paper addresses the question: who restores the peg?. We develop a dynamic, agent-based mean-field game framework for fiat-collateralized stablecoins, in which a large population of arbitrageurs and retail traders strategically interact across primary and secondary markets during a de-peg episode. The key advantage of this equilibrium formulation is that it endogenously maps market frictions into a market-clearing price path and implied net order flows, allowing us to attribute peg-reverting pressure by channel and to stress-test when a given infrastructure becomes insufficient for recovery. Using three historical de-peg events, we show that the calibrated equilibrium reproduces observed recovery half-lives and yields an order flow decomposition in which system-wide stress is predominantly stabilized by primary-market arbitrage. Finally, a quantitative sensitivity analysis identifies a non-linear breakdown threshold, beyond which a de-peg becomes markedly slower to reverse.

Ryan Lavin, Xuekai Liu, Hardhik Mohanty et al.

Zero-knowledge proofs (ZKPs) enable computational integrity and privacy by allowing one party to prove the truth of a statement without revealing underlying data. Compared with alternatives such as homomorphic encryption and secure multiparty computation, ZKPs offer distinct advantages in universality and minimal trust assumptions, with applications spanning blockchain systems and confidential verification of computational tasks. This survey provides a technical overview of ZKPs with a focus on an increasingly relevant subset called zkSNARKs. Unlike prior surveys emphasizing algorithmic and theoretical aspects, we take a broader view of practical deployments and recent use cases across multiple domains including blockchain privacy, scaling, storage, and interoperability, as well as non-blockchain applications such as voting, authentication, timelocks, and machine learning. To support consistent comparison, we provide (i) a taxonomy of application areas, (ii) evaluation criteria including proof size, prover and verifier time, memory, and setup assumptions, and (iii) comparative tables summarizing key tradeoffs and representative systems. The survey also covers supporting infrastructure, including zero-knowledge virtual machines, domain-specific languages, libraries, and frameworks. While emphasizing zkSNARKs for their prevalence in deployed systems, we compare them with zkSTARKs and Bulletproofs to clarify transparency and performance tradeoffs. We conclude with future research and application directions.

Gourab Ghatak, Hardhik Mohanty, Aniq Ur Rahman

We consider the non-stationary multi-armed bandit (MAB) framework and propose a Kolmogorov-Smirnov (KS) test based Thompson Sampling (TS) algorithm named TS-KS, that actively detects change points and resets the TS parameters once a change is detected. In particular, for the two-armed bandit case, we derive bounds on the number of samples of the reward distribution to detect the change once it occurs. Consequently, we show that the proposed algorithm has sub-linear regret. Contrary to existing works, our algorithm is able to detect a change when the underlying reward distribution changes even though the mean reward remains the same. Finally, to test the efficacy of the proposed algorithm, we employ it in two case-studies: i) task-offloading scenario in wireless edge-computing, and ii) portfolio optimization. Our results show that the proposed TS-KS algorithm outperforms not only the static TS algorithm but also it performs better than other bandit algorithms designed for non-stationary environments. Moreover, the performance of TS-KS is at par with the state-of-the-art forecasting algorithms such as Facebook-PROPHET and ARIMA.