Absolutely .. the problem is that there are so many things moving and it is next to impossible to get the big picture of what those that discussed in the threads have agreed upon ..
If you put that into a few paragraphs ... we can get this into a nicely formated BSIP quickly!
For multiple reasons, I am not the right person to take this and run with it. So I'm not sure how this matter will move forward since it appears few are taking it seriously. Which seems odd considering that bootstrapping liquidity (especially for the major fiat BitAssets) seems to be of critical importance. Or am I missing something?
There's been 12 pages of discussion, it would be nice if someone could sum it up in a single clean document so that it can be easily digested by more people. Even if it was literally just copy-and-paste snippets of notable points.
I saw some important variables were identified (length of time on the books, distance/spread, etc), but have any *reward equations* been proposed? This is the hardest & most important part. What variables do we measure and how do we combine them into a single score.
No equation has been proposed so far. We have only identified the primary factors. So we need to come up with values and weightings and combine them into an equation. Perhaps that's something you can take a stab at? I've listed the factors again here:
1. order size
2. time on book
3. distance from price feed
4. bid/ask balance
For the most effective possible application of #4, we need to figure out how to measure which side needs more liquidity (aka the "weak" side) at any given time (i.e. the ask side in a market trending higher, the bid side in a market trending lower) and factor that into the scoring. However, some have suggested we should leave that for fine-tuning at a later date. I tend to agree. So for starters, perhaps we should simply reward equal liquidity to the bid side and to the ask side.
Also, although orders further away from the price feed have value since they can provide market stability, for starters we should simply reward liquidity at and near the price feed, perhaps using 2 bands, say 1% and 5% around the price feed.
We also need to start thinking about how much in funding we want to make available to pay rewards.
@Empirical1.2 threw out $100-200 per day as a potential starting point. That would represent 4-8% of total funds available for worker proposals. Perhaps we should go with the higher end of that, if politically feasible.
The other question is how much to apply to which markets. Clearly we should be looking to boost liquidity in the major fiat BitAsset markets, primarily USD and CNY. But also EUR to a lesser extent. Perhaps the split between USD and CNY can be roughly according to exchange rate. And then carve out a % for EUR. So perhaps 80%/15%/5% for USD, CNY, and EUR respectively.
Thanks for looking at this,
@roadscape.