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bitshares / bsips

BitShares Improvement Proposals and Protocols. These technical documents describe the process of updating and improving the BitShares blockchain and technical ecosystem.
https://bitshares.github.io
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New BSIP: Leverage Same Capital to Place Order Across Multiple Trading Pairs to Increase Market Depth #227

Open bangzi1001 opened 4 years ago

bangzi1001 commented 4 years ago

Problem: Mr. Market Maker only have limited capital 1000 BitCNY for market making. If he need to market making for 10 different trading pairs, he need to split 1000 BitCNY to 100 BitCNY for each trading pairs. The Market Depth for each trading pairs decrease 90%.

Solution:

  1. Mr. Market Maker able to leverage same Capital 1000 BitCNY to Place Orders Across Multiple Trading Pairs.

  2. Example How Mr. Market Maker Create a Buy Order with 1000 BitCNY and Increase 10,000 BitCNY Market Dept: { Trading Pairs: BTS/CNY = [Price = 1 , Quantity = 1000], //Each Trading Pair Buy Order Value should =< 1000 BitCNY Trading Pairs: OPEN.BTC/CNY= [Price = 1 , Quantity = 500], Trading Pairs: GDEX.BTC/CNY= [Price = 0.8 , Quantity = 1000, Price = 0.2 , Quantity = 1000], //Allow Multiple Price & Quantity Trading Pairs: RUDEX.BTC/CNY= [Price = 1 , Quantity = 1000], Trading Pairs: OPEN.ETH/CNY= [Price = 1 , Quantity = 1000], Trading Pairs: GDEX.ETH/CNY= [Price = 1 , Quantity = 1000], Trading Pairs: RUDEX.ETH/CNY= [Price = 1 , Quantity = 1000], Trading Pairs: OPEN.EOS/CNY= [Price = 1 , Quantity = 1000], Trading Pairs: GDEX.EOS/CNY= [Price = 1 , Quantity = 1000], Trading Pairs: RUDEX.EOS/CNY= [Price = 1 , Quantity = 1000], }

  3. Matching Rule a. If the New Buy Order match existing Sell Order, priority should be Top to Bottom from the list of trading pairs. b. Later, if Mr Seller A sell 1 BTS to Mr. Market Maker for 1 BitCNY, All Buy Order at All Trading Pairs should decrease 1 BitCNY.

This BSIP probably increase witnesses'node CPU and Memory usage a lot but I believe worth it. Witnesses may need to uprade their server spec and thus may need to increase witnesses'pay.

clockworkgr commented 4 years ago

haven't had time to think about it in depth.

At first glance it seems very processing intensive..At the same time, it does sound like an excellent feature.

Guess it's up to core team to comment on feasibility.

Also, I expect mm bots would have to be made more complex to account for this.

abitmore commented 4 years ago

It's essentially fake depth. You can't put one apple in 2 baskets at the same time.

bangzi1001 commented 4 years ago

It's essentially fake depth. You can't put one apple in 2 baskets at the same time.

The BSIP is an upgrade version of One-Cancels-the-Other (OCO) Order. Not something new in financial world.

abitmore commented 4 years ago

The BSIP is an upgrade version of One-Cancels-the-Other (OCO) Order. Not something new in financial world.

I don't disagree.

froooze commented 4 years ago

Komodo (liquidity multiplier) had this function too, but could not find any documents about this now.