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General Discussion / Re: why not borrowing?
« on: June 15, 2019, 01:03:19 pm »
Until there are on chain incentives to create smartcoins and provide liquidity with them, there will be no serious supply increase. It's about time liquidity providers were rewarded, at the moment its all risk and no reward.
When someone creates a smartcoin there should be a mechanism that rewards the user with BTS for safe collateral ratios and for placing the smartcoins on the books. Rewards would only be paid out to users with CR above 3 for example for a period of time at which those orders remained on the books within say 5% of the market centre price, the closer to the centre price and higher the call ratio the better the reward.
Combine this with a maker/ taker fee schedule and you will see people start to take a real interest in creating smartcoins and providing liquidity with them.
BitShares is no different from any other exchange in the sense that it needs to incentivise liquidity providers if it wants to succeed.
When someone creates a smartcoin there should be a mechanism that rewards the user with BTS for safe collateral ratios and for placing the smartcoins on the books. Rewards would only be paid out to users with CR above 3 for example for a period of time at which those orders remained on the books within say 5% of the market centre price, the closer to the centre price and higher the call ratio the better the reward.
Combine this with a maker/ taker fee schedule and you will see people start to take a real interest in creating smartcoins and providing liquidity with them.
BitShares is no different from any other exchange in the sense that it needs to incentivise liquidity providers if it wants to succeed.