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RE: Multi-Exchange Steem Market Maker - Reposted from Creator account in order to submit the proposal

in #steemproposals • 5 years ago

Hello Sir,

  • It would be good to see the details for existing trade volume of STEEM in the Exchanges you intend to deploy Market Maker. What are those Exchanges and how much increase in the trading volume (in %age) over current volume you project with the help of 50000 STEEM?

  • What is the criteria that led to 10 months of initial reserve expenses. What's the plan to sustain it after 10 months?

  • Who will bear losses incurred, if any, through market making activity?

These are some of the things I was pondering over before voting on this proposal.

5 years ago in #steemproposals by
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     5 years ago 

    Those exchanges hold millions of STEEM. The increase in volume will not be monumental but any increase will be good and the liquidity of STEEM on those exchanges will go up.
    This will make the exchanges like STEEM more and investors would not need to fear liquidity shortages.

    I suggest he tries it for a few months and if he is successful, he can ask to triple the money for the project once he has shown that he is doing good.

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     5 years ago 

    The picture above shows the trading volume on different exchanges. These are really low volumes.

    1. As of now I do not have idea about how much trading volume can be increased. This depends on market conditions and will vary. But there will not be any wash trading as that is considered illegal.
    2. 10 Months is more or less arbitrary but driven by the fact that if a project is started then it should run for a year to evaluate its potential and effectiveness.
    3. Losses will be on the steemmm account's collected funds. So if there are losses then I will be coming to more funds by showing and justifying through performance criterias. Services will be running till all the funds are exhausted.

    Below is a good read on many issues and practices on market making.
    https://hackernoon.com/a-guide-to-market-making-for-crypto-startups-jydr387v

    Thank you for asking great questions.

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