Building Bancor Simulations in Python — A Step by Step Explainer

Learn the fundamentals of Bancor protocol simulations

Ai generated image created by author, inspired by artwork of Beau Stanton

Table of Contents

• Introduction
• DAO Proposal Background — TLDR
• Project Setup
• Datasets
• Simulator Architecture
• The Baseline Simulation
• The Proposal Simulation
• Summarizing the results

Introduction

\Image edited by author from source: https://github.com/bancorprotocol/research

At the most general level, a simulation is the imitation of a real-world process or system over time via use of a model; whereby the model represents the key characteristics or behaviors of the selected system or process, and the simulation represents the evolution of the model over time.

A simulator then, in this context, is a software that creates a virtual model —applications of which are common across industries, including in optimization tasks, safety engineering, testing, training and education, video game development, the scientific study of natural systems, and of course, in economics…