Cent And SHORT Market Making Study

(edited)

Hello dear Cent community. As you know, we have 5 liquidity pools. Trading volume in the Hive and HBD liquidity pools, in particular, has reached very good levels. We haven't yet reached the desired values ​​in terms of trading volume and liquidity in the Hive/Cent market. However, as you know, trading volume and liquidity are very important for a healthy price formation. We are placing buy and sell orders in the Hive/Cent, Hive/SHORT market using our @centtoken account. Additionally, several arbitrage bots are balancing prices between the liquidity pools and the market. Many scalping bots operate in the market. However, they are not sufficient. To achieve sufficient trading volume and liquidity in the Hive/Cent and Hive/SHORT markets, we have decided to launch an study.

What you need to do is very simple:
Enter buy and sell orders in the Hive/Cent or Hive/SHORT market. You can place interval orders at specific price levels or by setting a percentage. If you want your trade to be completed quickly, reduce the price spread and order quantity. If you aim to earn higher profits each time an order is executed, increase the price spread between orders.

Rewards:
Currently, it is not possible for us to technologically track executed transactions and distribute rewards proportionally to the transaction. Therefore, we will conduct market transactions in the Hive/Cent and Hive/Short markets. We will actively use @dswap. So, reward distribution will primarily be done through price slippage. Instant buy and sell transactions will ensure that the market maker orders you enter are executed. This way, you will achieve a certain profit margin. We will also actively monitor the Cent and SHORT markets and distribute tokens through various events.

Things to note:

  • When trading, your priority should be to avoid losses. Don't get excited and sell all your tokens when the price rises excessively. Similarly, don't buy tokens with all your capital when the price falls excessively.
  • Always keep Hive, Cent, and SHORT in your wallet. This way, you will constantly monitor potential trading opportunities.
  • When you need to place market orders, break them down into smaller parts. Don't rush. Allow arbitrage bots time to stabilize the price.
  • Follow the price in liquidity pools. As mentioned above, the price of Cent and SHORT tokens is primarily determined in liquidity pools. Following the price in the liquidity pool until the market becomes dominant will be beneficial for making profitable trades.
  • Instead of placing orders above the prices in the order book, place orders at different prices. This way, your orders will stay away from areas where price movement is concentrated and will be executed faster.

Below, we'll share a screenshot as an example. We've highlighted a few orders placed for market maker trading. A portion of one of these orders has been executed, and the user has earned some income.

market maker.png

As you know, we are very proactive compared to other projects in terms of active management of liquidity pools, liquidity provider rewards, etc. As stated in Cent's technical documentation, our primary goal is to provide our users with a token that has high liquidity and sufficient trading volume. Therefore, we strive to ensure healthy price formation in the Cent market, as well as in liquidity pools. We will continue to offer very attractive incentives to ensure features such as high liquidity and low price slippage. Feel free to ask any questions you may have. Follow this account for new event announcements and current news.

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11 comments

This is good news

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Mostly bots are trading tokens, including CENT, fighting against them is boring, I prefer staying in the liquidity pool
!LOLZ

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Despite having zero transaction fees, unfortunately transaction volumes on Hive-Engine are extremely low. If there were no arbitrage bots, price differences in liquidity pools would increase enormously. Price slippage between liquidity pools and coin markets begins to occur. Scalping bots are a bit annoying. However, they also reduce the difference between buy/sell orders.

Bots are extremely useful if you are not in a hurry. It makes perfect sense to use liquidity pools when time is an issue. However, when you do not have time problems, we recommend that you use token markets. You will see your costs start to decrease and your profitability increase.

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You may be right, but I hate the idea of having to go through a trading bot to buy or sell a token. By doing so, you don't get a fair price and you're fattening up a middleman, and given the high number of bots out there, it must be very juicy.
I don't think they reduce the difference between bids and offers, the difference only reduces if a human places orders that beat them and then they readjust, I've tested it several times to precisely reduce the difference.

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@tipu curate

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Thank you.

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Wow, participating in the Hive/Cent market event could be a good opportunity to influence price dynamics and earn rewards. Very exciting for this

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Thanks. We hope this process will be fun and profitable for you too.

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Absolutely Cent Token, the future is going to be brighter with Cent

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Always keep Hive and Cent in your wallet. This way you are constantly on the lookout for possible buying and selling opportunities.

I never thought of this of both HIVE and CENT. I only think to keep HBD and HIVE. Anyhow, thanks for reminding us.

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Keep up the good work. πŸ‘

Recognized by Mystic artist Gudasol

You are loved.

Interested to to help music map cXc.world spread more good vibes on Hive?.

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I'm redoubling my effort to keep buy/sell orders on the cent/swap.hive market.

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Wow! So rich in trading insights. Thanks!

!DIY

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@axietrashgame just sent you a DIY token as a little appreciation for your post dear @centtoken! Feel free to multiply it by sending someone else !DIY in a comment :) You can do that x times a day depending on your balance so:

Don't be shy - share some DIY!

You can query your personal balance by !DIYSTATS

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I can setup a bot to help the price if needed?

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Sure. That's fine. As long as the market maker is making trades, we'll send rewards.

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