Smart markets

[luckybit]

Maybe Bitshares needs smart markets and combinatorial auctions as a way to solve the liquidity issues and also for efficiency.

[Thom]

Checkout his presentation at devcon1 for a quick, 10 minute synopsis. On his first slide he claims "Continuous auctions are evil, don't use them".

[Pheonike]

 

[luckybit]

@xeroc  ? @bytemaster ?

[luckybit]

Smart markets replace multiple double auctions with a sophisticated combinatorial auction as the core mechanism (Phase 2.0).[n] Because double auctions simply sort bids and asks, they are only capable of bilateral order matching on two-sided order books. And since double auctions can only do bilateral order matching, multiple securities must be traded in parallel on disconnected, two-sided order books; an arrangement that fragments liquidity. In contrast, combinatorial auctions solve complex optimization problems, so they can perform multilateral order matching on a united, multi-sided, combinatorial order book. Since multilateral order matching on a combinatorial order book enables multiple securities to be traded together in the same combinatorial auction, smart markets aggregate liquidity.

http://cdetr.io/smart-markets/
https://github.com/cdetrio/smart-markets