I am currently a Lecturer in Digital Finance at the University of Western Australia Business School.
I obtained a PhD in Finance from Warwick Business School (2025).
My research centres upon economic networks and financial market structures.
Email: zhengge.zhou@uwa.edu.au or seczhou@outlook.com
Working papers
Optimal Automated Market Makers
This paper argues that an automated market-making algorithm in the context of blockchain-based financial exchange can act as a Walrasian auctioneer. The resulting pricing schedule will form as a (liquidity-) weighted average over the demand schedules submitted by liquidity providers. This optimal schedule is implementable when liquidity providers govern the exchange in a decentralised manner.
Medium of Exchange in Blockchain Economy w/ Agostino Capponi (Columbia)
This paper asks: Do we need money in a blockchain-based economy? The answer is yes because a medium of exchange (e.g., stablecoins) can significantly reduce the network costs of the blockchain economy.
Middlemen in OTC Markets with Search Frictions and Asymmetric Information w/ Roman Kozhan (Warwick)
Despite adverse selection and search frictions, dealers still enter the OTC market and trade with speculative informed customers. This is because dealers can learn information from speculators at a loss and then exploit this information advantage by re-trading with liquidity customers at a profit.
Inventory Management in Networked Over-the-counter Markets
Dealers are interconnected through a network of trading relationships. While a fully connected interdealer network is socially optimal, it can hurt market stability, as key dealers may suddenly enter/exit the market.