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Hello. Let's take Zing Token as an example. In the Hive/Zing market, the trading volume in the last day was $133. In the Zing/Hive liquidity pool, the trading volume in the last day was $401. The situation should be exactly the opposite. In other words, the place where the trading volume should actually occur should be the token market, not the liquidity pool. And the price formation should occur in the token market.
Let me talk about just one of the problems that the current situation will create; The current Zing price in the liquidity pool is 0.00273 Hive. In the Hive/Zing market, it is 0.00263/0.00359 Hive. The price in the liquidity pool should be close to 0.00311 Hive. As long as the token market does not have the trading volume and liquidity advantage, healthy price formation cannot occur, no matter which way the price moves. I chose Zing because it is a known example. 90% of the tokens in the Hive-Engine have the same problem. Arbitrage bots like Mcbot, God0, Konvik etc. provide some balance. However, they do not provide real users with the opportunity to make a profit due to low transaction volume etc.
We have started studies like the one here regarding Cent. One of the purposes of creating this token is to prevent the problems I mentioned. Such things will remain very weak. However, it is necessary to start from a certain stage.
I have been wondering about these accounts. Now I see; they are bots.
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The reason it should be the opposite is cause there's no fees there?
But yeah I always thought the arb bots would take care of the spread, not sure why it's still that bad. So if it helps with that then I can understand it. Thanks for explaining!
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