Modelling Market Actors

#1

Hey all, new to cadcad but got the basic setup working and I am now wondering how I could model my projects best.

One thing I would like to model is how the smart contract system is affected and affect the market price of a token.

On the latter, do you usually model sale and purchase pressure ? Or simply inject a market price function as input?

One aspect of my system is the inflation that affect only a portion of the token holders. These will then put a down pressure on the token price.

Is there good simple examples where I could get inspired on these questions?

Like how do you normally model market actors ?

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#2

I worked on an ABM model for a paper where we extended the Lux & Marchesi (2000) model to simulate market volatility based on dynamic agents. Here’s a link to the original paper: VOLATILITY CLUSTERING IN FINANCIAL MARKETS: A MICROSIMULATION OF INTERACTING AGENTS.

Here’s the repo containing our paper (currently in peer review for journal submission) and all the code to reproduce the model.

I would be very interested in refactoring this work to use cadCAD. Anybody interested?

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#3

I have experience with cadcad and your use case seems a like an interesting problem to model with it. We should connect to discuss.

#4

new to cadcad. also looking for ways to model market actors.

Here is my rather naive opinion regarding selling and buying pressure. Basically, selling/buying pressure comes into existence when there is a new source of supply/demand breaking the existing supply-demand equilibrium.

So in the uniswap model: k = x * y, this new demand/supply will change the amount of x & y, thus creating a change in the price.

Please let me know what you think.