arXiv AI By Zahra Batool, Michael Duchesne, Kaiwen Zhang, Ulrich Aivodji

DeFiRank: Federated Pairwise Ranking for Governance in Decentralized Financial Networks

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DeFiRank is a federated learning-based pairwise ranking framework designed to improve governance in decentralized financial networks. It allows multiple institutions to collaboratively train a ranking model without sharing private transaction data, capturing network-wide behavioural patterns such as diversity of counterparties, multi-application usage, and transaction frequency. Evaluated on a real-world blockchain dataset, DeFiRank achieves ranking performance close to a centralized baseline while preserving data privacy and maintaining ranking stability, enabling reliable provider promotion and demotion decisions.

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