Game Theory
The Quantland ecosystem can be thought of as a simultaneous game with actions below:
- Stake : Stakers receive staking rewards in QLT and airdrops in USDC.
- Mint : Minters contribute stablecoins to the treasury when they mint new QLT. The growth of treasury’s deployed investment capital increases QLT’s fundamental value in the long run.
- Buy : Buying increases QLT price.
- Sell : Selling decreases QLT price.
Based on the above analysis, we can assign the payoffs of each action:
- Stake : +0 for QLT holders; +1 for the staker himself.
- Mint : +1 for QLT holders; +0 for the minter himself.
- Buy : +1 for QLT holders; +0 for the buyer himself.
- Sell : -1 for QLT holders; +0 for the seller himself.
The only Nash equilibrium is when for all players keep “staking,” as shown in the table below:
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