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Add revert-rate-vs-cap figure#14

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fhenneke wants to merge 1 commit into
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revert-rate-vs-cap
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Add revert-rate-vs-cap figure#14
fhenneke wants to merge 1 commit into
mainfrom
revert-rate-vs-cap

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@fhenneke

@fhenneke fhenneke commented Jul 15, 2026

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Running the new cell should give the following figure.

image

Some observations:

  • Equilibrium bits for reasonable choices of p_ext do not impact bids much and thus revert rates from price movements do not change much either.
  • Including an external revert rate of 3% already implies underbidding at relevant caps.
  • Scaling of caps with time does not follow the typical sqrt(t) scaling for some token pairs.

Co-Authored-By: Claude Fable 5 <noreply@anthropic.com>
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