⚙️(3,3) Mechanics

This page explains the game theory mechanics behind Kuza.

If we simplify all possible interactions made by individuals with Kuza to the extreme, we identify 3 of them:

1. Stake (Buy)

2. Bond (borrow)

3. Sell

(3, 3) game theory table

The rating, ranging from +3 to -3, reflects the positive or negative impact on the price or supply of $QE

This table provides a simple illustration of the externalities of each action. The aim is to get as many participants as possible to cooperate towards actions that have no negative externalities on $QE's supply or price.

However, this model is based solely on an investor's point of view, and does not take into account the protocol itself. Indeed, Kuza's main objective is to build up a large treasury, by managing $QE inflation rate and strategically incentivizing the purchase of bonds.

Overview of Kuza's Architecture