Author Topic: Maker Taker Incentive/Fee parameter for Assets  (Read 319 times)

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Offline lafona

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Maker Taker Incentive/Fee parameter for Assets
« on: September 13, 2018, 03:44:50 am »
I see that something like this was written up as Bsip-3 and deferred and I feel that this is worth bringing up again for discussion. In general I would like to see an option for asset owners to specify maker and taker fees separately. One thought is to allow these values to be positive or negative as long as the sum is greater than 0. Thus an exchange could set the maker fee to 0 or even offer a rebate by making it negative, essentially paying from the taker fee. Some possible benefits are listed below.
  • Reduces the minimum profitible spread, allowing makers to reduce spread further. With many assets at 0.2, the minimum profitable spread would be 0.4 percent. With a structure like this, it could be reduced to 0.
  • With more and more gatways/exchangesit could be beneficial to have an easy on chain market maker incentive option. Looking at cryptobridge, the market maker incentive program appears to be a success however it requires additional work from the exchange and ultimately will not be as transparent as an on chain feature. You might say a feature like this could be an additaional selling point for new exchanges deciding on using bitshares.
  • Could be an interesting experiment for committee assets to incentivize additional market making activity and potentially increase the supply of bitassets. On of the current challenges for the creation of bitassets is how to incentives shorters. With the advancement of the dexbot software, market making is a potential source of return for these users. If there was an additional maker rebate involved this could increase the return on such a setup.

I think the ecosystem is making big strides in increasing liquidity with the combination of exchange and community efforts, and I think something like this would only enhance those efforts. Any thoughts?
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Online clockwork

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #1 on: September 13, 2018, 05:59:15 am »
the maker incentive negative percentage is a VERY interesting thought

Havent gone in depth with it to see potential issues but it def needs some attention.

Hope more people join in this conversation

Offline Thul3

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #2 on: September 13, 2018, 06:42:00 am »
Qryptos had this concept of a negativ trading fee of 0.1% without much succeess as it didn't received much attention.They changed later to liquidi.

Offline armin

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #3 on: September 17, 2018, 12:21:19 pm »
0% maker fees makes for wierd, step-wise graphs. Just look at coinbase pro.

EDIT: This only occurs when there is a disparity between maker/taker fees. If both fees are 0% the graphs are smoother.

Offline Customminer

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #4 on: September 17, 2018, 02:50:07 pm »
If it was free to make and cancel market orders, then wouldn't that introduce DOS attack risk - see downloadbot spam a month or so ago for a more expensive stress test that was performed
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Offline armin

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #5 on: September 18, 2018, 01:12:45 am »
Yes that's true we do want some fees, I think the order creation/cancel fees can be used to discourage spam, lafona is talking about the market fees atm

Offline bench

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #6 on: September 27, 2018, 01:36:23 am »
Making an order costs now as much as taking an order with 0.00578 BTS, the taker could have 10*0.00578 BTS fees to make it more fair?
« Last Edit: September 27, 2018, 11:18:38 pm by bench »

Offline armin

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #7 on: September 27, 2018, 01:50:01 am »
too complicated, fee is already very low. If they raise it though your suggestion may be good

Offline bench

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Re: Maker Taker Incentive/Fee parameter for Assets
« Reply #8 on: September 27, 2018, 02:26:42 am »
I don't think it is too complicated to add an extra line for TAKE ORDER (0.0578 BTS) and make it even 10 times bigger than PLACE ORDER.
I don't know how much changes on the core side are needed.

The fee structure should benefit liquidity provider and punish people, who reduce liquidity.
230k filled orders * 9 * 0.2 * 0.00578 BTS would generate an extra income of 2000BTS/day for reserve pool.

At the end of the day a maker, who makes several orders and cancels it, should pay less fee, than somebody just takes an order.

Edit:
On the margin call side the taker should only pay the maker fee, to help the market.
« Last Edit: September 29, 2018, 02:55:54 pm by bench »