[EBM] Get liquidity into BitCNY / BitBTC market

[clout]

I will happily do it if anybody will buy BitBTC at 1.005 and sell me BitBTC at 0.995 .

I'm glad to have you on board. That is a tight enough spread that I am sure there will be traders willing to execute those orders

[clout]

I will happily do it if anybody will buy BitBTC at 1.005 and sell me BitBTC at 0.995 .

I am only waiting for a better API to get a quick bot implemented that everybody can use ..
We may even be able to integrate something easy into the wallet directly .. eventually

I dont think the wallet devs are inclined to integrate the bot in the the wallet. This also doesnt need to to be done by a bot since there are no realtime price changes that need to be considered. These orders could be handled manually although i would of course want them to be automated in the future.

[betax]

I will happily do it if anybody will buy BitBTC at 1.005 and sell me BitBTC at 0.995 .

I am only waiting for a better API to get a quick bot implemented that everybody can use ..
We may even be able to integrate something easy into the wallet directly .. eventually

Excellent, there is no need for a UI for this. A bot like the old one will do... (not that I use it for long..)

[xeroc]

I will happily do it if anybody will buy BitBTC at 1.005 and sell me BitBTC at 0.995 .

I am only waiting for a better API to get a quick bot implemented that everybody can use ..
We may even be able to integrate something easy into the wallet directly .. eventually

[betax]

I will happily do it if anybody will buy BitBTC at 1.005 and sell me BitBTC at 0.995 .

[clout]

As of right now we have 6 markets where the conversion rate should be about 1:1. These are the markets where bitassets are traded for an IOU of the underlying asset to which the bitasset is pegged. The following markets would present the least amount of risks for market makers, who could predictably generate a profit from the spread:

YUNBI.BTC / BitBTC (on external exchange)
YUNBI.CNY / BitCNY (on external exchange)
OPENBTC / BitBTC
TRADE.BTC / BitBTC
METAEX.BTC / BitBTC
BOTSCNY / BitCNY

In order to generate more volume on the internal exchange, these bridge markets need to first have a  large depth at a low spread. I refer to these as bridge markets, because inevitably if there is liquidity in these markets than we can create direct bridges that convert BTC to BitBTC.

If we can create more efficient bridge markets for BitBTC then we can expect that BitBTC can trade against other liquid bitassets at the correct market price and within a tight spread. Being that BitCNY is the most liquid and efficient bitassets market, we should, upon improving the liquidity of the BitBTC bridge markets, encourage trading in the BitBTC/BitCNY market. We already have a bridge for BitCNY in the form of Transwiser, which has already created the code for direct integration into the Bitshares GUI wallet. At the top of the deposit page BitCNY and BitBTC would be displayed, and the user could deposit BitBTC with BTC and BitCNY with CNY. The BitCNY / BitBTC market would then be the definitive market for for BTC and CNY on the Bitshares exchange.

Breakdown of Agenda:

• Provide liquidity for BitBTC bridge markets
• Create a direct bridge between BitBTC
• Encourage trading of BitBTC and BitCNY, if both assets have large volume bridge support (i.e. Transwiser and the BitBTC bridge to be determined)

How to provide liquidity in bridge markets

• Borrow BitBTC with BTS
• Sell BitBTC at 1.005
• Buy BitBTC back at 0.995
• Repay loan
• Net 1% profit

Executing this simple algorithm allows individuals that are long BTS to generate a profit of 1% while still remaining long BTS. I would like to encourage anyone, who would like to help Bitshares liquidity problem, to Borrow BTC and begin selling it at less than a 1% spread on one of these bridge markets.
   
Please let me know if you can contribute to this effort. Being that the trading history is public, market makers can retroactively be compensated. I would insist that BM provide brownie points to those that contribute to market making. Going forward if we can demonstrate that the community can generate more liquidity on these bridge markets, I think that it would be appropriate to get a work proposal for a market maker budget.