Insurance Fund Simulation and Analysis

The insurance fund is used to cover liquidations when an account reaches negative equity. This fund acts as the first line of defense against bad debt incurred from liquidating accounts. With the launch of dYdX v4, the community will be responsible for maintaining and funding the insurance fund to protect the protocol.

We are looking for a team to build a tool that maps the performance of our insurance fund against different market conditions. The goal is to conduct simulations such that the community can determine the optimal size of the insurance fund to protect the protocol. We are looking for a tool built in Python or Go. Ideally, we’d like to include an initial report on the findings that explores different scenarios to the community.

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