One of the more confusing aspects for prospective and new members is how the capital pool operates. Though we have a comprehensive write up in the documentation and a separate Token Model page, it’s hard for most people to visualize how the amount of capital in the pool impacts the MCR% and how a greater MCR% impacts the price of NXM in terms of ETH value.
What do members think about creating an NXM bounty for anyone who can build an interactive model that allows a user to change the MCR% and see the change in NXM price (as valued in ETH)?
Users could simulate an addition of 1,000 ETH to the capital pool or a claim payout of 1,000 ETH from the capital pool to members. I think this would make the fundamentals behind the mutual more accessible for members.
There are a number of inputs that would be helpful to illustrate using this kind of a model for the MCR and Capital Model:
- The impact an addition or reduction of capital has on the MCR% and NXM price.
- The formulas behind the bonding curve and token price in dynamic action.
Another model that simulates the Risk Assessment process by changing the amount of staked NXM would be helpful, too. Users could see the difference another 1,000 NXM staked against Bancor would have on capacity (for example).
There are a number of inputs that would be helpful to illustrate using this kind of a model for Risk Assessment:
- Demonstrate the impact of more/less staked NXM on cover availability.
- Show how the Global Capacity Limit and Specific Risk Limit impact available cover/price.
What does everyone think? Would this be a good use of Community Funds? Would other members find this helpful, AND do members think this educational tool would help us educate prospective members in the coming months?