Bonding Curve Research Group: Update #2
Hello TEC Community friends! Bonding Curve Research Group (BCRG) here with an update of what we’ve been up to in our second sprint… (you can also see the previous update here if you haven’t yet checked it out).
Beginning with Gratitude
We would first like to acknowledge the support and generosity of the community in entrusting us with funding to catalyze this thread of research, and continue providing valuable feedback for this project, research direction and outputs.
We are excited for the opportunity to serve the core mission of creating Token Engineering public goods via research, educational content and analysis of our own economic mechanism of the ABC, to advance the field of Token Engineering.
PAMMs & SAMMs
As part of our mission to focus our research, we have chosen to center our attention on Primary Automatic Market Makers (PAMMs), a.k.a. bonding curves for token issuance and redemption. This decision was guided by a clear gap in the market; many are familiar with Secondary Automatic Market Makers (SAMMs) like Uniswap or Balancer, but PAMMs are less understood.
We eagerly anticipate the forthcoming release of our introductory article that delves into both PAMMs and SAMMs, with a particular emphasis on PAMMs. This article lays a solid foundation for future content and educational materials.
Article 1: Exploring Bonding Curves: PAMMs & SAMMs
Case Studies of PAMMs
In pursuit of a deeper understanding of existing PAMMs, we have conducted research and produced a series of case studies. A framework has been developed for these case studies and several have already been completed. We are committed to refining and aligning our case studies with this framework for easy comparison.
Bancor Bonding Curve Python Model
Our dedicated bonding curve analysis team has developed an impressive Bonding Curve simulation, which is written in Python and available on our GitHub. We will continue to build on this public infrastructure.
Our goal is to pull data from Dune for the TEC bonding curve as well as the Honeyswap pool. We aim to run a historical simulation of the TEC economy from the perspectives of the Bonding Curve and the Honeyswap Pool, measuring execution price and depth to calculate arbitrage opportunities over time.
Bonding Curve Parameters Model.
TEC ABC Data & Dashboards
To create a historical simulation of the TEC economy, we first needed to gather all relevant dune queries. Consequently, we have created an additional Dune Dashboard for the TEC for this specific purpose. This data is then wrapped and pulled into Python for use. Our efforts in this area also include documenting the methodology we used to transition from Dune queries to simulating the bonding curve in Python.
You can find the dune dashboard here bonding_curves
We are sharing our work publicly through our public notion document and our newly created Twitter page. As we publish more content, we plan to increase our use of these platforms for greater public engagement.
Welcoming a New Team Member
We are delighted to introduce Ravi Patel as our newest member. Ravi, currently working at magicpowered.io, is a passionate advocate for building user-centric Web3 infrastructure. His extensive knowledge and experience make him a valuable addition to our group.
We recently participated in the Gitcoin grant rounds and successfully raised several hundred dollars from 23 different contributors. We are eagerly awaiting to hear about matching funds. We remain profoundly grateful for the ongoing support from the larger community.
Feel free to explore our Token Engineering Application & Web3 Edu application.
Once we receive the matching funds, we plan to apply for the next six weeks of funding from the TEC via TAO voting.
Deliverable Tracking Gantt Chart
To maintain a clear overview of our deliverables and associated documents, we have created a comprehensive Gantt chart. You can access notes taken each week by clicking on the corresponding links.
Thank you for taking the time to read this update! We look forward to providing further updates in three weeks. In the meantime, please feel free to leave any feedback, questions, or comments below.
This post was collaboratively authored by Jessica Zartler and Curious Rabbit, with valuable contributions, edits, and input from Shawn Anderson, Jeff Emmett, Rxx, and Hashir Nabi.