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Research

Stability Analysis

A stability analysis was conducted that investigates the stability characteristics of Mento stable value assets through a series of simulations under various market conditions. In this analysis, simulation techniques are used to understand the behavior of the protocol and its potential vulnerabilities over a wide range of possible developments — including severe shocks, attacks, extremely positive and extremely negative market movements. A wide range of possibilities was modeled, rather than relying on historical data, because the space is too new to rely on historical prices for modeling purposes.

A good introduction into the stability analysis - especially for users not used to reading economic research papers - can be found in this blog post (Mento stable assets were previously called Celo stable assets):

{% embed url="https://blog.celo.org/a-look-at-the-celo-stability-analysis-white-paper-part-1-23edd5ef8b5" %}

And here you can find the full stability analysis research paper (Mento stable assets were previously called Celo stable assets, and Mento Labs spun out of cLabs):

{% embed url="https://celo.org/papers/Celo_Stability_Analysis.pdf" %}