Poloniex is an altcoin exchange that provides the largest source of BTS liquidity. For the most part its markets are denominated in BTC, however, it has recently integrated Tether USD (USDT) which allows users to better manage their portfolio risk on Poloniex. The USDT markets are not a substantial point of volume, but it provides the only stable currency traded on the exchange.
Since Poloniex is a US based company and must comply with costly money transmitting regulations it is far easier for them to use stable crypto currencies to provide crypto to fiat exchange. BitUSD is an alternative solution that can be used to circumvent costly regulations while also providing a trading experience comparable to larger exchanges that have fiat deposits.
USDT does have several advantages over BitUSD at the moment. USDT is pegged at $1 while the price of BitUSD fluctuates with the market (this can be solved by getting more liquidity into the BitUSD market through bridges like Transwiser). The other advantage that USDT has is that it is already used on other exchanges, Bitfinex, being the major exchange that supports USDT. It would not be difficult for Poloniex to support BitUSD. At the moment, however, it might not provide any advantages over USDT except for faster payment confirmation.
BitCNY could provide many advantages over USDT. Firstly, BitCNY is pegged by the market to the value of CNY. It is our most liquid bitasset, considering both internal and external liquidity. BitCNY would provide poloniex with an additional fiat currency that could be traded against on their platform - one that tether does not support. Additionally, BitCNY would also give Poloniex exposure to the chinese markets and allow them to more easily capture a share of Btc38 and Yunbi users who would like to use margin trading, but cannot because these services are not offered on either of these exchanges. In the same way that USDT connects Poloniex to exchanges like Bitfinex and Cryptsy, BitCNY would connect Poloniex to the aforementioned Chinese exchanges. The exposure to the Chinese markets would also present arbitrage opportunities for traders who could profit from the spreads between Chinese exchanges and those in the US. As a result, Poloniex would see an increase in revenue from trading and transfer fees.
If Poloniex integrates BitCNY it would be trivial to also integrate BitUSD. Having another major exchange trading BitUSD would improve the liquidity and efficiency of the BitUSD markets and further reinforce the peg to USD.
Goal: Get Poloniex to integrate BitCNY and BitUSD.
How do you think we could best go about incentivizing Poloniex to integrate BitCNY and BitUSD into their platform? How else should we leverage our partnership with Poloniex?
Topic: [EBM] Poloniex (Read 4075 times)
