Author Topic: Why not provide MM with funds to increase liquidiy  (Read 2411 times)

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Offline yvv

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The difficult part is to find a skilled market maker. The rest is easy.

Offline Akado

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Well, this is a start. Would like to see some more input and members who would be willing to help or participate with some funds.
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Offline yvv

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This can be easily done with UIA. Let a market maker(s) issue UIA for each market he wants to make. If you want to participate in making a particular market, you buy corresponding UIA and your funds go to MM pool. If MM makes profit, he buys back his UIA. If he is at loss, all participants share it.

Offline sklsm3

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Offline cryptillionaire

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Would there be an advantage to distributing the market maker software to several thousand volunteers via an BOINC project? Could be one of the first commercial BOINC projects - users could donate funds (bts/bitassets) in order for the distributed market maker bots to provide liquidity to specific assets on the Bitshares platform. Volunteers could additionally be rewarded Gridcoin for their efforts if the project was whitelisted.

Or do you think that it wouldn't be secure? (volunteers would require bts/bitassets to 'market make'; preventing volunteers from stealing these funds whilst allowing the MM bot to operate may prove difficult).

Such an idea began to be discussed over at the Gridcoin forums: https://cryptocointalk.com/topic/47426-looking-for-gridcoin-community-allstars/#entry218865

Offline xeroc

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Offline Chuckone

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I would be willing to lend at least 0.5 BTC worth of Bitshares for the market maker bots initiative.


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Offline Akado

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We could do some type of liquidity event again.

Whoever has market maker bots and can be considered a trustworthy member of the community would gather some funds from members to increase liquidity on the markets.

If everyone sent for example 0.1 or 0.05 BTC -  or any other amount, of course more is better - to a market maker bot account with multi sig,  we could increase liquidity on a certain number of markets and whoever temporarily donated those funds could get them back at any time since it's a multi sig account.

First thing would be to make a pool and see how much members would be willing to donate.
Then according to that number, adopt a plan. If it's a considerable amount, we could spread it through a few markets, if not, we should focus only on 1 or 2. Maybe even spread it through multiple bots since each one as a different trading strategy?
Then make a tutorial on how ppl have their funds on a bot account via multi sig and showing how they can withdraw their funds at any time
Then actually collect funds

This would be done just to provide liquidity which is our aim, not to try to collect profits from trades, which either way shouldn't be that big.

Ideas?

Or do something similar but to reward takers and makers. A community fund whose funds would be used to pay takers and makers. I dont know if a proposal for this wih BTS pool funds was already done and failed, but if it did, then we could try it this way. Build a smart contract, send funds there and it would automatically pay makers and takers using the funds members donated.

I just think we should try something, liquidity won't come if we don't move.
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