🌙(3,3)

Understanding the (3,3) Game Theory. Players are most likely to stake/buy when they anticipate an increase in price. And when users stake/buy, it helps support price and allow price of the asset to grow.

Players are most likely to sell when they anticipate a decrease in price. And when players sell, it dampens the price even more.

Staking has the effect of pushing the price up +3. Selling has the effect of pushing the price down -3. Buying has a an effect of +1.

They are 3 things you can do with MMF token.

Stake — Staking in Single MMF staking pool OR staking your LPs in maximizer vaults on MM.Optimizer

Buy— Buying MMF

Sell — Selling your MMF yields or even simply selling it to form LPs.

As you can see, the dominant strategies are all cooperative. Both players’ staking results in 6; buy and stake results in 4.

Conflicting moves (buy/sell) are neutral. When 1 user buy and another user sell, it negates the negative effect on price.

When user (stake/sell) it has a negative effect on price still with a -1.

The scenario where it is (sell/sell) is the most negative sum outcome, with -6. When both players sell, it will push down MMF price and as a result, both players stand to lose since they both sold at a low price.

This is a simplification of game theory. This is merely meant to demonstrate the positive-sum environment created by cooperation.

Working together produces optimal outcomes. Therefore, for the MMF system to prosper, it is important that (1) refrain from selling MMF tokens (2) refrain from selling MMF tokens to form LPs.

Key takeaway — Staking in MMOptimizer maximizer vaults will help achieve (3,3) and its a win-win for everyone in the ecosystem.

The best part is, you will get way higher compounded returns (APY) than if you were to perform any type of action. Hence this is why this product is called an “Optimizer”. It optimizes your profits for you!

Last updated