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Economic Models

We support founders in evaluating market risk, determining the optimal mechanism design, and parameterizing their protocols based on thorough quantitative research, optimization frameworks, and our cutting-edge simulation platform.

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What we do

Improve Tokenomics

Ensure that your token accrues value sustainably and aligns incentives between all participants.

Maximize Rewards

Optimize fees and rewards to maximize stakeholders’ participation and revenue.

Grow Liquidity

Guarantee liquidity in all market conditions and maximize LPs' returns while preserving long-term value.

Audit Risk

Increase your protocol’s resilience against market, governance and oracle risk with an economic audit.

With our optimization frameworks and cutting-edge simulation platform, it has never been easier to increase your capital efficiency while maintaining competitive fees, enhancing protocol rewards, and mitigating risk.

How we do it

Agent-based Simulation Framework

Our own agent-based simulation framework —Neferpitou—, which stress-tests DeFi protocols against various market scenarios.

Optimization Framework

Optimization techniques such as convex optimization, to find the set of parameters that maximize or minimize the modelled objective.

Sensitivity Analysis

Financial models to analyse the impact of certain variables on key outcomes, understand the influencing factors and reduce uncertainty.

Forecast Methods

Statistical forecasting techniques that rely on historical data and appropriate assumptions to make useful financial projections.

Some of our work

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Yeti Finance

Yeti Finance is a cutting edge decentralized borrowing protocol built on Avalanche that allows users to borrow up to 11x against LP tokens, staked assets like Liquid AVAX, and base assets like WETH - and over 20x on yield-bearing stablecoins, all at a 0% interest rate.

Download report (PDF)