Evmos and POL Finance Partner To Build A Robust Economic Model
Evmos is thrilled to announce a strategic partnership with POL Finance, an innovator in the financial and economic aspects of Web3 protocols. The POL Finance team members have undertaken extensive academic research, delving into the concept of impermanent loss within automated market makers, mean field games in liquidity pools and more at the University of Buenos Aires. This collaboration aims to elevate Evmos’ token economics design and establish a more sustainable and decentralized network.
“We are excited to partner with POL Finance in the economic analysis for the new Evmos Token Economics. The math and economic research and analysis from POL Finance will help us create a new token model that is robust, economically sound and able to adapt to different network conditions for the long term and with the right incentives in place.”
— Federico Kunze Küllmer, Evmos Founder
“A robust economic system is of paramount importance for the proper functioning of a blockchain. A blockchain operates as an incentive machine, motivating agents to perform specific actions by rewarding them with tokens. As constraints are introduced, this system becomes increasingly intricate. Evmos recognizes the significance of robust token engineering, which is why we collaborate to achieve it.”
— Santiago Di Paolo, POL Finance Co-founder
The collaboration will be conducted in three well-defined phases, each with specific objectives and clear milestones: onboarding, research and design and mathematical and economic audit.
Onboarding
During the initial Onboarding Phase, the collaborative efforts of Evmos and POL Finance will focus on a comprehensive examination of the existing Evmos token economic model. The primary objectives of this phase are as follows:
- Deep Dive into the current model: POL finance will conduct a thorough exploration of the current Evmos token economics model to gain a detailed understanding of its structure, components, and performance.
- Identifying critical components: The parties will identify the key components necessary for a healthy and sustainable token model as well as the areas that require improvement in the current model.
Research and Design
In this phase, our collaboration will focus on the development of a robust token economics framework.
Evmos and POL finance will create and test a mathematical model to underpin the new token economics design. The new model should strengthen game theoretical foundations of the network, while encouraging adoption and securing the whole Evmos ecosystem. During this phase POL Finance and Evmos should achieve the following objectives:
Mathematical and Economic Audit
In the last phase, a thorough mathematical and economic audit will be conducted, including stress testing using Agent-Based Modeling (ABM). POL Finance team will also conduct simulations under extreme network conditions like low liquidity, low bonding ratio, and token volatility.
Another objective of this phase is to draw comparison of the old and the new model’s network KPIs such as the Gini Coefficient, the Nakamoto Coefficient, economic security, validators rewards, etc. The improvements will be incorporated to the new token economics design of Evmos.
The outcome — the final Evmos Token Economics Audit & Simulations Report — will be presented to the Evmos community, accompanied by an analysis of the mathematical audit, ABM stress tests, and Reinforcement Learning (ML) simulations as well as recommendations and enhancements to major economic parameters, guided by the results of these tests.
The collaboration will strengthen Evmos token economics, emphasizing sustainability, decentralization, and efficiency. Evmos and POL Finance are dedicated to delivering innovative and robust model to benefit all parties in the ecosystem.
The partnership is presently underway and has progressed to the Phase 2. Stay tuned for further updates as we continue to advance in this collaborative journey.
About POL Finance
POL Finance is a team of highly skilled mathematicians, economists, data scientists, and quantitative finance professionals. The team offers mathematical-financial audits, risk management and token engineering consulting service to support blockchain ecosystems. Learn more about POL here.
About Evmos
Evmos is an interoperable EVM blockchain designed for cross-chain dApp development.
The Evmos Core Development Team is on a mission to create and ship the foundational tools necessary for building the cross-chain applications of the future. With groundbreaking roadmap features like EVM Extensions, the Evmos SDK, and the Evmos dApp Store, Evmos gives developers the freedom to take advantage of the IBC and connect their smart contracts to the Cosmos Ecosystem.
This revolutionary technology frees developers from the confines of today’s siloed blockchains.
The future is cross-chain.
Helpful Resources
💻 Developer Documentation: https://docs.evmos.org
👾 Official Discord: https://discord.gg/evmos
🐙 GitHub: https://github.com/evmos/evmos
🕊 Twitter: https://twitter.com/EvmosOrg
📯 Telegram: @EvmosOrg
📄 Blog: https://blog.evmos.org
🖥 Evmos Website: https://evmos.org
🌋 Evmos Careers: https://boards.eu.greenhouse.io/evmos
Evmos is the EVM stack for building natively cross-chain decentralized applications.
We encourage you to read the Evmos Manifesto and learn more about our plans to build a cross-chain future.
DISCLAIMER: None of this is financial advice. This content is strictly for educational purposes. It’s not investment advice or a solicitation to buy or sell any assets.
