Atlas USV
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Overall Strategy (NETD)
Most DeFi protocols today are designed for market scenarios where nearly all users are cooperative. For example, in the (3,3) meme, the protocol works only when most users stake and hold. But as we know, in the real world, at no time do large numbers of users cooperate with the protocol. A simplistic but more accurate meme would define reality as (-3, 3). At the very core of human DNA and evolution is the concept of frequency dependent selection, which in layman terms means that the core facets of human psychometric (personality) traits synthesize into almost endless permutations. Under no circumstances will one find even 100 similar people in any restaurant, university, or cryptocurrency project. The structural weakness of DeFi 2.0 is a glaring problem to anyone with an astute understanding of mass human behavior.
So how shall we then proceed?
Almost every DeFi protocol we look at is defenseless against real world scenarios -- essentially becoming a sitting duck when market conditions turn. They are built on inaccurate understandings of the science of crowds. We instead are built upon advanced behavioral economics.
Renowned evolutionary psychologists such as Dr. David Buss speak of the real world as composed of, "hawks and doves" or "cooperators and defectors." The naïve conception of a world full of only cooperating "doves", has led to the creation of multiple DeFi protocols which, either have already, or will soon face inevitable disaster. Wei Chen et al. "Evolutionary dynamics of N-person Hawk-Dove games" Nature (06 July 2017)
In Atlas USV, we are attempting to build the most logical protocol possible. Our protocol is built around the theory of the Nash Equilibrium in non-cooperative games. This theory won the Nobel Prize in 1994 because it defined the solution to surviving in Machiavellian environments where other parties hide their true intentions. We are the only protocol we know of, to have carefully integrated this science deeply into our infrastructure.
For further explanation, this Nash equilibrium, named after the mathematician John Forbes Nash Jr., is a way to find optimal, stable solutions in non-cooperative games. In any financial system, the players have mixed and unreadable strategies. The inevitable mix of high velocity bots, Hodlers, momentum traders, short sellers, easily panicked token holders, malicious actors, must be dealt with carefully. To further complicate the system, the protocol itself is an actor playing the tit for tat that defines game theory. [Thomas Schelling, The Strategy of Conflict, 1980, Harvard University Press].
In short, what creates a massive distinction between our Atlas USV and other DeFi protocols is two points:
1) USV protocol itself is a game participant that must prudently juggle and settle upon the "Aristotelian mean" between passivity and active defense
2) USV protocol is better suited to deal with the portion of users who defect and turn hostile
To give credit where credit is due, we have named USV's overarching strategy as NETD or Nash Equilibrium Token Defense.
In the next few sub-sections we will elaborate on various aspects of NETD. Remember: This is a living, evolving protocol. More details will be added to the docs over time as the USV "Skynet" becomes a sentient being. Ask Elon...
Last modified 25d ago
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