Flexible risk management

Ouija's slippage function serves three purposes:

  1. Disincetivise traders to disbalance the pool

  2. Incentivise arbitrageurs to balance the pool

  3. Never let HF fall less than some critical value

Strength of incetives for 1-2 and critical value mentioned in 3 can be managed with 2 slippage function parameters:

  1. Slippage function multiplier, which manages strength of incentives for 1 and 2.

Slippage function with different multipliers applied.

  1. Minimal allowed HF, which sets a point where slippage goes to practically infinite values.

Slippage function with different HF applied.

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