witgaw
commented
3 years ago Very rough notes from planning:
- Calibration tool itself doesn't need to be coupled with the protocol at all.
- Use market proposal metadata to include link to IPFS market data, calibration tool, hash of tool version (was it?).
- Rely on reputation / community score to give weight to the validation of calibration.
@Jiajia-Siska did I forget anything crucial (or if you remember any more details please add them in a comment while it's still fresh).
This is ticket to keep track of discussion around what we want to achieve.
At a very high level a calibration tool is anything where you: 1) input some market data (can be historical e.g. time series, or forward looking e.g. option prices), 2) get appropriate model parameters out.
Clearly on some level the calibration tool is model dependent.
We probably want to integrate this with the protocol to the extent that if someone proposes a market they can dump the calibration market data into the proposal and others can verify that they're getting the same model parameters (maybe for on-chain treasure rewards).
We also want to have something that will tell us something like: with these model parameters + auction settings the market will go into price monitoring auction this many times. Separate but related.