Author Topic: Let's talk about Autobridging as a way to improve liquidity  (Read 11643 times)

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Offline MarkoPaasila

Autobridging would be very nice indeed.

In the mean time.  I've set up a bot with a similar function, that is at least watching a bunch of pairs on the DEX and will route them through various other pairs including many external exchanges 2 and 3 hops if there is a match.  It is nice that there is this connection but it would be much better if the orders were actually viewable on the book.  A bot could certainly place these orders themselves in a copy cat fashion but I havn't identified all the risk for this or how best to approach it myself.

At the moment I'm watching just over 400 different routes, 18 coins, on 6 exchanges including the DEX.

So the books may look empty but many of them are in fact being watched, and will take your order if it is good.

What are the advantages/disadvantages of having the DEX itself do this vs. a 3rd party replicating the function?
Can you do triangular arbitrage? https://en.wikipedia.org/wiki/Triangular_arbitrage

Xeldal

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Autobridging would be very nice indeed.

In the mean time.  I've set up a bot with a similar function, that is at least watching a bunch of pairs on the DEX and will route them through various other pairs including many external exchanges 2 and 3 hops if there is a match.  It is nice that there is this connection but it would be much better if the orders were actually viewable on the book.  A bot could certainly place these orders themselves in a copy cat fashion but I havn't identified all the risk for this or how best to approach it myself.

At the moment I'm watching just over 400 different routes, 18 coins, on 6 exchanges including the DEX.

So the books may look empty but many of them are in fact being watched, and will take your order if it is good.

What are the advantages/disadvantages of having the DEX itself do this vs. a 3rd party replicating the function?

Offline Akado

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" Ripple’s Path Finding Algorithm looks for the cheapest path for payments to move across the network. In this context, “cheapest” means the path that incurs the least bid/ask cost for the sender of a pay- ment."   Ripple is much advanced  than I thought.

The thing is, isn't this resource consuming? i mean, doing this everytime a bid/ask gets placed or a trade happens...
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Offline bitacer

 " Ripple’s Path Finding Algorithm looks for the cheapest path for payments to move across the network. In this context, “cheapest” means the path that incurs the least bid/ask cost for the sender of a pay- ment."   Ripple is much advanced  than I thought. 

Offline JonnyB

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Yes this is a great idea!

It was ripples best feature .
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Offline Akado

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This is a must and a killer feature to make BitShares a universal platform. This could enable thousands or even millions of community currencies to function on BitShares.  A real resilient ecosystem with diversity , just like a jungle full of vibrant organisms complimenting each other. Well done Akado for bringing this up !

I also think it would make trading much more solid!

Our chain, being one of the most scalable, could handle this I hope.
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Offline bitacer

This is a must and a killer feature to make BitShares a universal platform. This could enable thousands or even millions of community currencies to function on BitShares.  A real resilient ecosystem with diversity , just like a jungle full of vibrant organisms complimenting each other. Well done Akado for bringing this up !  I always dreamed of this but couldn't articulate, autobridging is a good way to express it .
« Last Edit: March 05, 2016, 07:21:09 pm by bitacer »

Offline speedy

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+5%

That diagram explains it very well, and of course BTS would be our central bridge currency.

Yes autobridging is needed! Here is why: If we had autobridging we could share links to the BTC:USD market and users would see the exact same price ranges they expect on other dollar denominated bitcoin exchanges, except without the counterparty risk. They would feel comfortable switching their exchange over to BitShares.

It sounds pretty easy to implement autobridging - we only need to bridge via BTS.
« Last Edit: March 05, 2016, 06:47:39 pm by speedy »

Offline Akado

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I've noticed there were some talks about this but I think it didn't get much attention so I decided to make this thread.

What is Autobridging?
https://wiki.ripple.com/Autobridging
https://ripple.com/dev-blog/introducing-offer-autobridging/
https://bitsharestalk.org/index.php/topic,15118.msg201331.html#msg201331

This way we would essentially have shared orderbooks and improve liquidity. Imagine if we could merge all OPEN.BTC, METAEX.BTC, TRADE.BTC markets into a single one that trades against BTS or USD. (doesnt work because users could end up with a UIA from a third party that they dont want, BTS should only be used as a bridge currency)Couldn't this, with sidechains, allow users to always get the best prices available vs multiple currencies? Sounds a pretty cool idea. It would be another reason for people to park their BTC in BitShares via our sidechain if we ever go forward with that.

As a simple example:
The BTC → BTS and BTS → USD can be synthesized into a synthetic BTC → USD. The real and synthetic BTC → USD order books can be be further synthesized into single combined order book.

Bridge Order Book + Bridge Order Book = Synthetic Order Book
1) USD/BTS + CNY/BTS = USD/CNY - this would be merged with the Direct USD/CNY Order Book
2) USD/BTS + EUR/BTS = USD/EUR - this would be merged with the Direct USD/EUR Order Book
3) BTC/BTS + USD/BTS = BTC/USD - this would be merged with the Direct BTC/USD Order Book
4) BTC/BTS + CNY/BTS = BTC/CNY - this would be merged with the Direct BTC/CNY Order Book

Do you think it's needed? Would it help? Would it be worth the effort? Why/why not?

« Last Edit: March 06, 2016, 12:43:22 pm by Akado »
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