Hyperdimensional Federated Learning for DeFi Risk Mitigation and Portfolio Optimization

**Abstract:** This paper proposes a novel approach to decentralized finance (DeFi) risk mitigation and portfolio optimization leveraging hyperdimensional federated learning (HDFL). Conventional DeFi risk assessment models suffer from limited data accessibility and siloed information. Our system overcomes these challenges by securely aggregating portfolio performance data across decentralized nodes using hyperdimensional representations, enabling highly accurate and robust risk scoring combined with personalized portfolio optimization strategies. This approach promises a significant reduction in systemic risk within the DeFi ecosystem and allows for more effective resource allocation for individual investors.

Institutions

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-10-11
DOI
https://doi.org/10.5281/zenodo.17321865
Primary Topic
Genomics and Rare Diseases
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Hyperdimensional Federated Learning for DeFi Risk Mitigation and Portfolio Optimization

Zenodo (CERN European Organization for Nuclear Research)
Genomics and Rare Diseases
article

Hyperdimensional Federated Learning for DeFi Risk Mitigation and Portfolio Optimization

article en

Abstract

**Abstract:** This paper proposes a novel approach to decentralized finance (DeFi) risk mitigation and portfolio optimization leveraging hyperdimensional federated learning (HDFL). Conventional DeFi risk assessment models suffer from limited data accessibility and siloed information. Our system overcomes these challenges by securely aggregating portfolio performance data across decentralized nodes using hyperdimensional representations, enabling highly accurate and robust risk scoring combined with personalized portfolio optimization strategies. This approach promises a significant reduction in systemic risk within the DeFi ecosystem and allows for more effective resource allocation for individual investors.

Zenodo (CERN European Organization for Nuclear Research)
Freed–Hardeman University (US)
Openalex Percentile: Top 34%
Genomics and Rare Diseases
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.