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RE: Why you should vote for Proposal 206 and build a bridge to Binance
Hey eco, thanks for continuing to put the development of HBD front and centre within the community.
The more chat we have around the general lack of liquidity in HBD, the better :)
Whether you think it's the best way to address the issue or not, this proposal is at least trying to offer something of a solution.
We need to invite the devs currently working on HBD to add to the discussion around the lack of liquidity.
@smooth and @blocktrades, you two would be a great place to start?
What are the pros and cons of what you're currently doing to improve HBD liquidity?
And in your opinion, would adding this proposal (or something else) to the mix help?
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I don't think the DHF should fund market makers. I see it as subsidizing fees to whatever exchange the AMM is hosted on and subsidizing investment risk for the AMM funders. I feel that liquidity pools, like any other market maker, should be able to profit off of a market spread.
If there is pent up demand for HBD liquidity, then running an AMM for HBD should be one of the safer MMs to operate because a smart AMM can take advantage of HBD<->Hive conversions if HBD price goes out of whack on external exchanges.
As a side note: AMMs do involve risk for participants, as well as potential rewards, something that standard AMM literature tends to downplay, IMO, with talks of BS things like "impermanent loss". But overall market making tends to be profitable, as plenty of professional traders can tell you.
Out of curiosity, how you would compare subsidizing fees for exchanges to paying exchanges for listings, which seems to be something that many token developers feel adds value by enabling more liquidity, market access for more participants, as well as exposure?
I don't have a strong opinion either way, but I can recognize some value when you are small and trying to become more visible and established. It seems to be generally in the category of marketing expenses IMV.
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Let's do that!
Can you make it?
HIVE:HBD Internal AMM (with order books still). The bots can arb between pool and orderbooks. This is the pair to start with in the internal market.
yes! @ecosaint
I don't have an opinion on this because I haven't paid much attention to the layer 2 solutions on Hive (except in that I encourage people to develop whatever they want on Hive). So I'm not sufficiently informed to have a view.
It is a layer two solution, a layer two exchange that is block-native to HIVE - its a solid sink for HBD and getting better - in fact it could get a lot better! Its also a great way to bridge Binance and BSC users into 'Real HIVE' and 'real HBD'.
The hive-engine team has added some tx fees to the pools and BXT has also activated a reward scheme, but we have a real opportunity here to activate this thing with a bang and create basically a marketing event.
Whether we keep funding it or not after we see the results, that is up to us all. But I really think this is a promising button to push.
I have nominated you for 20 HIVE SBI for getting both blocktrades and smooth to comment on my proposal. Let's tag more people!