This repository describes the Indigo Protocol Algorithmic Interest mechanism analysis.
Indigo Protocol (https://indigoprotocol.io/) is a synthetics derivatives protocol in the Cardano ecosystem. It is ranked #1 as per TVL in the Cardano ecosystem. As part of v2, Indigo Protocol introduced concepts like interest rate, Redemption of iAssets and RMR. Now, as a part of v2.1 Indigo introduced Algorithmic interest rate. The models descibed in this repository played an integral part in doing the analysis for the defining the protocol parameters and presenting the same to the community.
The description of various files is as follows:
'Indigo v2.1 Algo Interest Data Generation': Consists of the steps involved in generating the necessary data.
'Indigo v2.1 Algorithmic Interest Visuals': helps in visualizing the interest rate trends depending on input factors
'Redemption_Analysis': Consists of the steps required in calculating the amount of redeemable iAssets based on timestamp. It is one of the input parameters.
'Median_CR_vs_time': Showcases the trend in Median CR of active CDPs over time
'ITCR_Analysis': Showcases the effect on ITCR, due to creation of new CDP's
'iUSD_algo_interest_results': Consists of the final results of the historical simulation of the algo interest mechanism.
If you want to use these on your local machine:
- Install Python 3.x
- Setup Jupyter Notebooks