TiTi Protocol
Game Theory
Volatility gap and arbitrageur
Since the users’ prior experience is transactions, ReOrders mechanism cannot be triggered for every transaction. The protocol needs to reserve a specific range of fluctuations for the market, enhancing the user's sense of participation. At the same time, it reduces the gas consumption of the user's transaction from the engineering realization. Therefore, we set three trigger conditions in the initial stage:
1) Regular ReOrders: The Protocol will carry out ReOrders every half an hour;
2) Price deviation ReOrders: When the deviation of the TiUSD price relative to the price of $1 exceeds a specific threshold, be it 3%, ReOrders will be automatically triggered;
3) Market Maker Fund Movement: When investors participate in or exit from Market Maker Fund, ReOrders will be automatically triggered.
By this mechanism, TiTi introduces a new role for the protocol-arbitrageurs, who buy low and sell high. Protocol-arbitrageurs are crucial and positive for the protocol. They won’t bring any risk to the protocol, in reverse they can help push TiUSD back to $1 during the ReOrders interval. TiTi Protocol only needs to calculate the general ledger during ReOrders.
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