Trading Game: Difference between revisions
(Created page with "=Game Description= Several players compete to maximize the dollar value of their portfolio consisting of 2 assets: Token and Pol The competition takes place at an specified time for 1/2 an hour. Players buy and sell the token for Pol. At the end of the trading period, the players with more Pol value win. The game is a simulation of trading with a DEX Liquidity Pool containing two assets, say Token and Pol for example. So that the initial Token price is given by the i...") |
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The competition takes place at an specified time for 1/2 an hour. | The competition takes place at an specified time for 1/2 an hour. | ||
Players buy and sell the token for Pol. | Players buy and sell the token for Pol. | ||
At the end of the trading period, the players with | |||
At the end of the trading period, the players with a larger Total value win. | |||
Total value = Pol + Tokens*Price | |||
Price = Pol in Liquidity Pool / Tokens in LP | |||
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=Game mechanics= | =Game mechanics= | ||
Initial conditions: | |||
LP Has Po Pol, and To Tokens on it, so that initial price = Po/To | |||
All players start with a portfolio of (Pi,Ti) initial values of Pol and Token respectively. Therefore the intitial total value of the portfolio is: | |||
Total Initial Value = Pi + Ti*(Po/To) | |||
Revision as of 00:44, 10 October 2024
Game Description
Several players compete to maximize the dollar value of their portfolio consisting of 2 assets: Token and Pol
The competition takes place at an specified time for 1/2 an hour. Players buy and sell the token for Pol.
At the end of the trading period, the players with a larger Total value win.
Total value = Pol + Tokens*Price
Price = Pol in Liquidity Pool / Tokens in LP
The game is a simulation of trading with a DEX Liquidity Pool containing two assets, say Token and Pol for example.
So that the initial Token price is given by the initial amount of Pol divided by the initial amount of Token.
The game happens at an specified time and it last 1/2 an hour.
Players log into the game platform and are given an initial amount of Token and Pol to use it in trading. An Automated Player doing Random buy/sell transactions is added into the game to create a background volatility to stir things up in case no other player acts.
The actions of the random player may produce 3 game scenarios, price remains constant, price drops or price rises.
The goal of the game is to maximize the dollar value of the portfolio. (a variation can be to maximize the number of tokens)
Game mechanics
Initial conditions:
LP Has Po Pol, and To Tokens on it, so that initial price = Po/To
All players start with a portfolio of (Pi,Ti) initial values of Pol and Token respectively. Therefore the intitial total value of the portfolio is:
Total Initial Value = Pi + Ti*(Po/To)