𝗣𝗥𝗢𝗧𝗢𝗖𝗢𝗟 𝗣𝗔𝗥𝗔𝗠𝗘𝗧𝗘𝗥𝗦 𝗔𝗥𝗘 𝗘𝗖𝗢𝗡𝗢𝗠𝗜𝗖 𝗖𝗢𝗡𝗧𝗥𝗢𝗟𝗦, 𝗡𝗢𝗧 𝗝𝗨𝗦𝗧 𝗧𝗘𝗖𝗛𝗡𝗜𝗖𝗔𝗟 𝗦𝗘𝗧𝗧𝗜𝗡𝗚𝗦
Behind every decentralized money market are rules that shape participant behavior.
Risk thresholds influence how much exposure a position can take.
Interest-rate models influence the economics of liquidity.
Reserve mechanisms influence protocol-level accumulation.
Liquidation rules influence how unhealthy positions are handled.
These parameters interact.
Changing one parameter can alter participant incentives and therefore change market behavior.
That is why protocol research should not stop at reading feature descriptions.
The deeper layer is understanding the economic consequences of the rules governing the system.
A protocol is not only its interface.
It is also the collection of programmable parameters determining how capital behaves.
@DeFi_JUST @justinsuntron
#TRONEcoStar
Behind every decentralized money market are rules that shape participant behavior.
Risk thresholds influence how much exposure a position can take.
Interest-rate models influence the economics of liquidity.
Reserve mechanisms influence protocol-level accumulation.
Liquidation rules influence how unhealthy positions are handled.
These parameters interact.
Changing one parameter can alter participant incentives and therefore change market behavior.
That is why protocol research should not stop at reading feature descriptions.
The deeper layer is understanding the economic consequences of the rules governing the system.
A protocol is not only its interface.
It is also the collection of programmable parameters determining how capital behaves.
@DeFi_JUST @justinsuntron
#TRONEcoStar
