Key Takeaways
This paper shows that Ohm's non-linear control mechanism is actually approximating the behavior of a simpler stochastic linear-quadratic regulator.
The main result is that the Ohm protocol enjoys increasing ability to control price as the number of bond durations increases, but that this ability has diminishing marginal returns
The paper also shows that with proper dynamic tuning and adjustments, the Ohm protocol can both improve capital efficiency and reduce risk to protocol users.
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