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RE: How to Improve the Internal Market - Steem/SBD - With Better/Fairer Liquidity Rewards and Implied Prices...
I think also that reducing the liquidity reward is the way to go. Probably something like $10 per hour would be sufficient. It's not too much, but something that a (good) bot could easily earn.
I think you need to reward the risk the liquidity providers are taking by working orders on the market, they don't necessarily want filled.
I personally don't think $10 per hour would come close to cutting it. I also think we need multiple users to fight for the rewards and this will result in the spread closing, and the market become more liquid..
Easiest way is to try it. Let's start with a small sum and raise it slowly until liquidity is on a good level.