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RE: Market Maker Smart Contract Is LIVE - HIVE-ENGINE.COM DEFI in the house!!!

in #hive-engine4 years ago

Very nice for liquidity, but what's the point of opening it up to everyone? If everyone has a market maker they will just trade each other or only one of them will take the trades right?

This means no profit for someone and a lot for someone else. Depends whose algorithm reacts faster. If it chooses randomly which account gets the trades, it will reduce profits massively while staying exposed to the same risk.

What really matters is the amount of money in the market maker. One whale could take care of the whole thing and make nice profits, makes more sense.

On another note, what other use-cases does the BEE/ENG token have?

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Other use cases for BEE/ENG will be added over time. For example we plan to gradually introduce more types of bot services after the market maker, which will also be powered by staked BEE/ENG.

If there are a lot of market makers running on a single market, they will compete with each other and gradually narrow the spread. However, it's likely people will have their trading configuration set differently, and orders will be placed/updated at different times in a way that should more or less be fair to everyone assuming that market volumes remain at a steady level throughout the day.

Well, you can always look for trading pair that has no market-maker yet. Also there are different strategies, risk management etc. :)

Ah, I see...

Bring the algos to hive-engine then