Saved in:
| Main Authors: | , |
|---|---|
| Format: | Preprint |
| Published: |
2025
|
| Subjects: | |
| Online Access: | https://arxiv.org/abs/2508.02685 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1866918114065645568 |
|---|---|
| author | Chen, Chi-Sheng Tsai, Aidan Hung-Wen |
| author_facet | Chen, Chi-Sheng Tsai, Aidan Hung-Wen |
| contents | The rise of decentralized finance (DeFi) has created a growing demand for accurate yield and performance forecasting to guide liquidity allocation strategies. In this study, we benchmark six models, XGBoost, Random Forest, LSTM, Transformer, quantum neural networks (QNN), and quantum support vector machines with quantum feature maps (QSVM-QNN), on one year of historical data from 28 Curve Finance pools. We evaluate model performance on test MAE, RMSE, and directional accuracy. Our results show that classical ensemble models, particularly XGBoost and Random Forest, consistently outperform both deep learning and quantum models. XGBoost achieves the highest directional accuracy (71.57%) with a test MAE of 1.80, while Random Forest attains the lowest test MAE of 1.77 and 71.36% accuracy. In contrast, quantum models underperform with directional accuracy below 50% and higher errors, highlighting current limitations in applying quantum machine learning to real-world DeFi time series data. This work offers a reproducible benchmark and practical insights into model suitability for DeFi applications, emphasizing the robustness of classical methods over emerging quantum approaches in this domain. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2508_02685 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Benchmarking Classical and Quantum Models for DeFi Yield Prediction on Curve Finance Chen, Chi-Sheng Tsai, Aidan Hung-Wen Statistical Finance Machine Learning Trading and Market Microstructure The rise of decentralized finance (DeFi) has created a growing demand for accurate yield and performance forecasting to guide liquidity allocation strategies. In this study, we benchmark six models, XGBoost, Random Forest, LSTM, Transformer, quantum neural networks (QNN), and quantum support vector machines with quantum feature maps (QSVM-QNN), on one year of historical data from 28 Curve Finance pools. We evaluate model performance on test MAE, RMSE, and directional accuracy. Our results show that classical ensemble models, particularly XGBoost and Random Forest, consistently outperform both deep learning and quantum models. XGBoost achieves the highest directional accuracy (71.57%) with a test MAE of 1.80, while Random Forest attains the lowest test MAE of 1.77 and 71.36% accuracy. In contrast, quantum models underperform with directional accuracy below 50% and higher errors, highlighting current limitations in applying quantum machine learning to real-world DeFi time series data. This work offers a reproducible benchmark and practical insights into model suitability for DeFi applications, emphasizing the robustness of classical methods over emerging quantum approaches in this domain. |
| title | Benchmarking Classical and Quantum Models for DeFi Yield Prediction on Curve Finance |
| topic | Statistical Finance Machine Learning Trading and Market Microstructure |
| url | https://arxiv.org/abs/2508.02685 |