We’ve released Level 2 of the Gyrosoft All-Weather Simulator, April 30.

In Level 2, Gyro users will perform arbitrage trades with the goal to make enough Gyro Dollars to buy their Gyronaut Corps membership NFT. To do this, Gyro users will navigate the arbitrage markets that maintain the secondary market liquidity and price peg. They will perform arbitrage loops between these markets and use their earnings in the first economic usage of Gyro Dollars.

How to play Level 2

If you’re just starting the game, start with Level 1, described here. For a full beginner tutorial (what is Metamask?), …

Level 1 of the Gyrosoft All-Weather Simulator is out today, 5th April!

The idea of level 1 is to get everything set up and running — the “plane” fueled ready for the rest of the game. It’s the best way to get familiar with our futuristic UI.

How to play Level 1

For a full beginner tutorial (what is Metamask?), first check out our walk-through here to set up Metamask and then come back here to continue with the game.

Welcome to the gamified Gyroscope alpha testnet! Play the game to stress test the Gyroscope stablecoin and win virtual points as a first adopter.

What is Gyroscope Protocol?

In case you’ve been too busy with your lockdown project and missed it, Gyroscope Protocol is an all-weather stablecoin built for DeFi power users who want the best decentralized stability. Gyroscope combines three primary innovations:

  1. It is built to be all-weather, backed by a reserve that stratifies all DeFi risks, including centralization, regulatory, governance, and composability risks, not just price risk.
  2. Gyroscope boosts liquidity in a sound and revolutionary way using newly designed automated market makers…

Gyroscope has the best design and technology today for decentralized stability. Here’s how we reinvent the stablecoin.

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At Gyroscope, we have a unique background on DeFi, having ourselves done the cutting edge research on every approach. We have designed Gyroscope for DeFi power users who want the best decentralized stability. In this sequence of posts, we illustrate how the Gyroscope design choices shape up against the wider space of stablecoins.

This is Part 2 on algorithmic stablecoins. Read Part 1 on meta-stablecoins and join us for Part 3 on custodial and leverage-based stablecoins coming up next.

Algorithmic stablecoins aim to maintain a stable price by automatically adapting the stablecoin supply to meet demand. There are three main…

Gyroscope has the best design and technology today for decentralized stability. Here’s how we reinvent the stablecoin.

At Gyroscope, we have a unique background on DeFi, having ourselves done the cutting edge research on every approach, which puts us in an ideal position to build a decentralized stablecoin. We have designed Gyroscope for DeFi power users who want the best decentralized stability. In this sequence of posts, we illustrate how the Gyroscope design choices shape up against the wider space of stablecoins.

This article is Part 1 on meta-stablecoins. Also see Part 2 on algorithmic stablecoins. Join us for Part 3 on custodial and leverage-based stablecoins coming up next.

Meta-stablecoins are stablecoins that are composed of a…

From TradFi currency pegs to non-custodial stablecoins

Following our work on modeling stablecoins here and here, we recently proposed ways to make more robust non-custodial stablecoins in our Gyroscope paper. This blog post is an intro to those ideas. The design insights are relatively simple, though their optimization is not. At the heart of the Gyroscope design is a community-owned reserve fund, which we call the gyroscopic buffer, that supports a currency peg through an algorithmic minting and redemption process.

TradFi Currency Pegs

Our ideas are far from a new concept altogether. The core design is similar to how traditional currency pegs work in traditional finance (TradFi). With a…

Incentive security and economic stability in DeFi: stablecoins, governance (e.g., COMP), DEXs, cross-chain assets, and more; a “manual” for open DeFi problems and models

Ariah Klages-Mundt, Dominik Harz, Lewis Gudgeon, Jun-You Liu, Andreea Minca

Sustainable farming?

TL;DR The new focus on DeFi governance yield farming and recent memory of Black Thursday amplifies concerns about the poorly understood structure of risks in DeFi. We provide a new foundation for characterizing and modeling these risks; this is developed in the context of stablecoins, but is more widely applicable to many crypto-economic systems, including cross-chain protocols, collateralized lending, and decentralized exchanges. Our framework focuses on measures of incentive security, meaning that participation is mutually profitable for all parties after accounting for attack surfaces, and economic stability, which poses the…

Deleveraging Risks, Integration with Custodial Assets, and an Alternative Non-Custodial Liquidity Mechanism for Crises

TL;DR A seeming contradiction arises in decentralized stablecoins: while the goal is to make non-custodial assets, these can only be fully stabilized by adding uncorrelated assets, which are currently centralized/custodial (e.g., Maker’s recent inclusion of USDC collateral). In fact, this issue applies more broadly to synthetic and cross-chain assets. We develop an alternative market-based mechanism to enhance stability in crises while remaining non-custodial. This creates a buffer that separates those who are willing to have stablecoins swapped to custodial assets (in return for ongoing yield from option buyers) in a crisis from those who require full decentralization.

Based on a…

The case for intervening early

A lot of great visuals have been created to communicate the idea of “flattening the curve” so that the healthcare system doesn’t get overwhelmed from Coronavirus COVID-19 cases. I haven’t seen much to help visualize the importance of intervening early with precautionary measures in an epidemic. I hope this post helps to convey some of the ideas.

Let’s consider the ‘cost of the epidemic’. Naturally, this is a vague concept, but you can imagine it as combining lives lost, long-term health impact, economic impact, etc. …

The security of the Maker stablecoin Dai relies on trusted oracles to provide pricing information. These are chosen through on-chain governance. Consequently, the oracle feed is manipulable by MKR token holders. In this article, I discuss attacks on Maker similar in style to 51% attacks, though not necessarily requiring 51% of MKR, in which a coalition can profitably manipulate governance to ‘steal’ system collateral. These attacks affect both the current single-collateral Dai (SCD or ‘Sai’) and the upcoming multi-collateral Dai (MCD) implementations, as well as similar systems with on-chain governance.

A consequence of these attacks is that, at current and…

Ariah Klages-Mundt

PhD student @ Cornell University, Twitter: @aklamun

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