This document aims to document all the R&D efforts made by the Policy and the Data and Metrics teams of OlympusDAO regarding the implementation of the Range Bound Stability paper ideated by Zeus.
The presented results are based on simulated data. The presented results shouldn't be taken as certain since reality will depend on market conditions that might have not been considered.
The created model aims to be representative of reality, but some simplifications have been assumed for the sake of efficiency and mass simulation.
The R&D working group has modeled the RBS system and run hundreds of thousands of simulations with different parameter configurations under randomly generated market behaviors to find the most robust and best-performing ones.
While it is impossible to anticipate future market behaviors, and the protocol's ability to counteract unfavorable conditions is limited, the performed simulations helped identify parameter configurations that worked well across different conditions.
The proposed configuration has been validated by the broader Policy team, and the simulation results with the testnet contracts. So it can be concluded that despite not comporting 100% with reality, they should be a reliable representation.
For further detail on the simulation results, refer to the third section of this document 3. Initial Parameter Configuration Proposal.