Yeah, liquidity tends to be gone in a split second when there’s a sudden dip, which I figure is a bot nibbling on arbitrage opportunities.
In a more ideal world we should let Poloniex walls have high spread and let the traders trade with each other in between, but I don’t like the fact that BTC volatility is translated into NBT volatility on CMC in times like that.
If that can be avoided then it will definitely be good to have high spreads. We’ll need to expand fiat pools, and shift NBT/BTC to off-exchange places where the volatility can’t be gamed so much.
The bigger picture will look like this:
- Set Poloniex spreads to 2-5%. Or generally large spreads that can still sustain some amount of volume. Perhaps sell-side can be tighter but buy-side to be looser to adjust for ALP expectations.
- Hopefully this sends more people to NuLagoon Tube (and potentially similar services), which have smaller spreads that can’t be gamed so easily.
- Implement our own Shapeshift replacement for NuDroid that doesn’t rely on exchanges.
- Have multiple NuSafe custodians on multiple exchanges, ready to supplement fiat pair ALPs.