This simulation models the behavior of risk-neutral, non-strategic bond purchasers in basecoin. Three models can be selected and analyzed, one for speculators with perfect information; an imperfect information case where agents “learn” about basecoin demand by observing market movements; and a third that includes an adversarial short-seller that attempts to collapse the bond auction mechanism by triggering a drop in bond prices below a pre-specified floor. The simulation is intended to be flexible and can be parametrized for different input values for simulation length, bond expiration, drift, volatility, inertia in price expectations, basebonds outstanding, and others. The results can be used to analyze questions such as: How do different choices for bond expiration affect resistance of basecoin to downward price swings? How does the robustness of the system vary under different volatility and growth assumptions?
lebed2045/Stablecoin-Simulation
This simulation models the behavior of risk-neutral, non-strategic bond purchasers in basecoin. Three models can be selected and analyzed, one for speculators with perfect information; an imperfect information case where agents “learn” about basecoin demand by observing market movements; and a third that includes an adversarial short-seller that attempts to collapse the bond auction mechanism by triggering a drop in bond prices below a pre-specified floor.
R