Author Topic: Subsidizing Market Liquidity  (Read 73672 times)

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Offline sudo

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Because there is no capacity of bitAsset
 so there is no attractive
Not because interest!!!!!!!!!!!!!!!!!!!!!!!!!!

Offline Samupaha

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Assuming we implement this feature in the BTS / USD market and voters approve workers funding this at a rate of 2.5 BTS / sec (50% of allowed dilution) and the internal exchange had $100,000 of daily volume then users trading on the internal exchange would see a 1% more than they would get by trading off chain. If daily volume was $50,000 then they would see a 2% profit over doing the same trades off-chain.
are you crazy?
I don`t understand  why you have this idea, you change the rule of bts2.0, 
BM do you forget the merge that hurt bts so badly?
maybe you want to improve bts using you way , but don`t change the rule first , I also think btser would not agree this idea ?
there are many operation can been done to improve bts
like margin trade
but I think many of btser would reject to force fork !

Take a deep breath and read the original post again. You have misunderstood it. This is just an optional feature that shareholders can use if they choose to. If this feature is implemented, nothing is forcing Bitshares to use it. It will be used only if shareholders decide to use it.

It can be also used only by businesses that want to increase liquidity of their own assets, isn't this at least very good tool to have?

Your fearmongering is hurting BTS badly right now. Please stop it. Analyze proposed features and workers properly before you judge them.

Offline BTSdac

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Assuming we implement this feature in the BTS / USD market and voters approve workers funding this at a rate of 2.5 BTS / sec (50% of allowed dilution) and the internal exchange had $100,000 of daily volume then users trading on the internal exchange would see a 1% more than they would get by trading off chain. If daily volume was $50,000 then they would see a 2% profit over doing the same trades off-chain.
are you crazy?
I don`t understand  why you have this idea, you change the rule of bts2.0, 
BM do you forget the merge that hurt bts so badly?
maybe you want to improve bts using you way , but don`t change the rule first , I also think btser would not agree this idea ?
there are many operation can been done to improve bts
like margin trade
but I think many of btser would reject to force fork !
« Last Edit: February 20, 2016, 12:12:53 pm by BTSdac »
github.com :pureland
BTS2.0 API :ws://139.196.37.179:8091
BTS2.0 API 数据源ws://139.196.37.179:8091

Offline Erlich Bachman

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i would suggest paying these kickbacks on a sliding scale based on length of time on the order books so if someone had a real safe hedge on the books for months that saved us from having a black swan event then he would deserve more than someone who put an order up for 10 min then sold to himself

i like a sliding scale concept, but actually think it should work in the reverse. open orders deep in the order book don't add real liquidity IMO, the action happens on the margin and closing the bid-ask spread is key. if there's going to be any subsidy for liquidity, it would best be spent narrowing spreads. that said, i'm more a fan of fee discounts than kickbacks; rewarding higher frequency trading and/or open orders near the highest bid and lowest ask.

i see your point now. it still seems like this might lead to gaming of the system but my game theory sucks.

i trust you guys on the math and if there is one thing worth spending our fee pool on its liquidity, so im on board
« Last Edit: February 21, 2016, 11:29:02 am by Erlich Bachman »
You own the network, but who pays for development?

chryspano

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Another question to ask is why CNX, who charges market rates for even minor bug fixes, is doing this for free?

It would be better to discover the motive now, instead of 3 months after the hardfork while everyone is pissed.

if any bug is introduced by this new function , it needs xxx man hours to fix it , then there is income .....

Are you accusing cnx that they deliberately are trying to introduce buggy code in BTS or you are just competing with Tonyk for the "Whiner of The Week" prize? (Hint: You stand no chance against Tonyk!)

i'm merely pointing out that work needs to be paid , no work is really free or cost nothing . The more complicated the function is , the most cost it will be . That's about what Sunny King said about not adding Cold Mining to PPC .

I'm sure we can find some Chinese coders that will fix any future bugs for "free!"
Maybe some Chinese traders/marketmakers will offer us liquitidy for "free!" too!

No worries there!

Offline btswildpig

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Another question to ask is why CNX, who charges market rates for even minor bug fixes, is doing this for free?

It would be better to discover the motive now, instead of 3 months after the hardfork while everyone is pissed.

if any bug is introduced by this new function , it needs xxx man hours to fix it , then there is income .....

Are you accusing cnx that they deliberately are trying to introduce buggy code in BTS or you are just competing with Tonyk for the "Whiner of The Week" prize? (Hint: You stand no chance against Tonyk!)

i'm merely pointing out that work needs to be paid , no work is really free or cost nothing . The more complicated the function is , the most cost it will be . That's about what Sunny King said about not adding Cold Mining to PPC .
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

chryspano

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Another question to ask is why CNX, who charges market rates for even minor bug fixes, is doing this for free?

It would be better to discover the motive now, instead of 3 months after the hardfork while everyone is pissed.

if any bug is introduced by this new function , it needs xxx man hours to fix it , then there is income .....

Are you accusing cnx that they deliberately are trying to introduce buggy code in BTS or you are just competing with Tonyk for the "Whiner of The Week" prize? (Hint: You stand no chance against Tonyk!)

Offline btswildpig

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Another question to ask is why CNX, who charges market rates for even minor bug fixes, is doing this for free?

It would be better to discover the motive now, instead of 3 months after the hardfork while everyone is pissed.

if any bug is introduced by this new function , it needs xxx man hours to fix it , then there is income .....
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline lil_jay890

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Another question to ask is why CNX, who charges market rates for even minor bug fixes, is doing this for free?

It would be better to discover the motive now, instead of 3 months after the hardfork while everyone is pissed.

chryspano

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I found an irony.

BM created the DEX and want to improve its liquidity. But he doesn't use the DEX.

http://cryptofresh.com/b/3577692

There is no irony. You just have to be in the 'right' mindset. The mindset of truly believing 'Dilution is Good'. Very Good indeed.
Repeat to your self: Dilution is Good', 'Dilution is Good', 'Dilution is Good'...check your self and see if you believe it (if not keep repeating)...'Dilution is Good'...

You believe it now? Good!
It is easy to see how you can pay your way into liquidity [no need to do it yourself, mind you]; by diluting the shares of an entity that has negative fees.
Where can this possibly go wrong in this house of cards and self-chained multiplication effects: Liquidity providers are happy to provide liquidity, after being paid; Shareholders are double happy - new found liquidity plus ALL the benefits of dilution!

The point is 'using it yourself' is they old way to do stuff,the old way where 2+2 equals 4 (5 the most); when you do not do it yourself but use the power of dilution and other multiplication tricks  2+0 equals at least 7 (often way more)!

Such Whining!
Very Buthurt!
Much Trolling
WOW

Do you have anything usefull to say or your aim is to see this thread filled with useless posts? (my post included)

chryspano

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I agree that 10 minutes is too low. The lower the volume the more time the limit should be. During the mumble the period of time that was mentioned was 24h, dunno the origin of these 10 min now.
24h is the max limit.The idea is - you do not get a reward for placing an order way from the price and it gets filled after 1week because the market moved.
10min is the min it must stay on the books - this is to prevent* self filling the order just to get the reward.

*This is the hope at least. With whale size orders the theory fails though.

Why? How?

chryspano

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Are MAKER's counter-cheating measures and  fair-distribution algoes gone? Reading the OP this seems to be the case.

If all that is left is matched order size (after 10 min wait), I can get 50% to 80% of this dilution with a stake of 1% of BTS.

And the worst is not that I will get all this dilution, the worst is:
- it will be fake volume, exiting for just a few minutes every day;
- it will be about as far from the peg as it is now
- because of that, shorts will be willing to short as much as now.

Really? How can you do that? How can we avoid this?

Offline Musewhale

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Offline cylonmaker2053

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i would suggest paying these kickbacks on a sliding scale based on length of time on the order books so if someone had a real safe hedge on the books for months that saved us from having a black swan event then he would deserve more than someone who put an order up for 10 min then sold to himself

i like a sliding scale concept, but actually think it should work in the reverse. open orders deep in the order book don't add real liquidity IMO, the action happens on the margin and closing the bid-ask spread is key. if there's going to be any subsidy for liquidity, it would best be spent narrowing spreads. that said, i'm more a fan of fee discounts than kickbacks; rewarding higher frequency trading and/or open orders near the highest bid and lowest ask.

Offline Tuck Fheman

There is no irony. You just have to be in the 'right' mindset. The mindset of truly believing 'Dilution is Good'. Very Good indeed.
Repeat to your self: Dilution is Good', 'Dilution is Good', 'Dilution is Good'...check your self and see if you believe it (if not keep repeating)...'Dilution is Good'...


Disclaimer : Just to make tonyk laugh.
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