I'm glad that a few people like the idea of having an autonomous market maker!
@Xeldal @Empirical1.2 @puppies @AkadoYou can't guarantee trades will be profitable, but I like the idea.
Ah, OK my bad.. I honestly don't know a whole lot about market making, in that case this probably shouldn't be fee pool funded.
In addition, if anyone could fund this pool, and take the chance on its profitability, it could be very popular.
I agree, it is a good idea for this to be fund-able by shareholders. This would also help with the issue
@Empirical1.2 brought up by allowing people to deposit assets the autonomous market maker was low on:
Apparently it's a little bit harder than just setting at X%...
The problem with market making is its only profitable in mean reverting markets (sometimes referred to as ranging), as soon as you get a strong trend the market maker will lose money because it will end up with an unbalanced inventory of assets. That risk makes designing a good one very very complicated.
I think the idea of a simple native MM is a good idea in itself. Maybe a fit for a smart contract.
I would prefer it to be autonomous or I personally would not likely deposit into it.
It probably wouldn't require committee funds but may be a nice addition. And if profitable, is a nice addition to the committee account as well. The MM pool could simply issue a token for donations to it, and the token could be exchanged back in for the equivalent percentage ownership of whats left of the pool... minus some fee.
Pretty simple.
Agreed, this could be like a UIA, or there could be a specific MM account that people can load with different Smartcoins.
I'd like to see something like this too. I still think we should attempt to come up with something, even if it has a daily limit/other. With more liquidity, BitUSD would be a more trusted option than NBT/Uphold but without it, it's the least favoured option so I'm always in favour of addressing this even if there's a cost and the market maker isn't profitable.
I concur
We seem to be bottlenecked by development. Either cost or manpower. If we can come up with solutions that don't require cnx, we will be all the stronger for it.
Unfortunately, I agree but this could at the very least be put into the long term plans for Bitshares. I think increasing liquidity should be the main priority of development.
And we could all help with that https://bitsharestalk.org/index.php/topic,20859.0.html
I can't build an autonomous decentralized MM bot, but I can attempt to build a bot that anyone could download and run on their computer. I will mess around with it... I have been learning Javascript/Node the past few months (I've been making Meteor apps specifically) and might be able to do that. I also have done some Java/C++/HTML/CSS in the past, but am really rusty in Java/C++. I think an open sourced Meteor app that anyone can download and run in their browser would be legit. I would need to study the economics of MM bots though first.