We have seen some discussion regarding the walls on non-USD pairs being subject to arbitrage abuse. For example, if the price of BTC moves suddenly, a whale trader may sell or buy a large portion of the wall before it has time to react, which can cost shareholders a significant amount of value. This is only a problem on crypto pairs, because USD pairs maintain unmoving buy walls at 0.998 and 1.002.
I am putting forward this motion to very slightly alleviate this issue. It also has the added benefit of a very small profit potential due to the spread.
This motion mandates that custodians operating with shareholder-granted liquidity, currently only @KTm and @jmiller, widen their NuBot spread on non-USD currency pairs by 0.05% on each side of the peg. On exchanges with a 0.2% fee, this means that the buy wall must now rest at 0.25% below the peg, and the sell wall 0.25% above, instead of the previous 0.2% spread. Any profits earned by this spread shall be added to the custodian’s fund to be distributed as dividends, in accordance with the associated custodial grant proposal.
Motion hash: 17B6B422188072AB0527231654940BC53E0118DB