Warp Bonds
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Game Theory (3,3)
These dynamics will strengthen and weaken depending on the premium, market outlook, macro environment, and a litany of other factors. Don’t read too hard into the numbers. This is merely meant to demonstrate the positive-sum environment created by cooperation.
Two players with three possible actions:
  • Stake (Buy)
  • Bond
  • Sell
With cooperation, WARP's users can ensure the maximum possible collective benefit for the entire network of participants.
Let’s take a closer look. Each axis represents a player. The X-axis is player 1, and the Y-axis is player 2. When both players act in accordance with the green boxes, they get a positive outcome for both the player and the protocol. When both players act within the yellow boxes, they see a net neutral outcome. As the player who sells would push the price down, which negates the benefit of the other player who either stakes or bonds. When both players act within the red box, they incur a negative outcome for both the player and the protocol.
Depending on how users choose to play the game of WARP, various outcomes are possible.
As you can see, eight out of nine options are either net positive or net neutral. However, when both players sell, they produce the least desirable and net negative outcome: -3 and -3. On the other hand, if both players are staking and auto-compounding, they produce the most desirable and highest net positive outcome to themselves and the protocol (3,3).
This clearly demonstrates the positive sum environment created through WARP game theory in rewarding players the most when they collaborate and cooperate, regardless of when they join the game.
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