‘Tolerance’ is a parameter in config.py that is called when the server is run. It defines the window of acceptance for orders for the client. It does not exist in the non-tllp world, it is the umbrella of creditable orders.
‘Offset’ is a parameter in trading.py that is called when the client is run. It defines the actual difference between buy and sell orders that the client places. (except offset is actually named ‘spread’ in the code itself.)
‘Deviation’ is also a parameter in trading.py, called by the client. It defines how far the price can drift before the orders are moved.
‘Spread’ is a colloquial term = 2 * offset. It is what people ultimately want to talk about, you want it to equal the exchange fees.
Offset + Deviation < Tolerance must be true to have the bot run at 100% efficiency. Deviation should be between 0.2 and 0.3%. That means your ‘price’ is drifting by more than what you’re trying to peg, which means one tllp provider could regularly have a buy order up at higher than market price. With a tolerance of 0.7%, like you set on your server, one could easily run an offset of 0.49% and a deviation of 0.2%.
If we want competition to blossom, we shouldn’t be cracking down on something that we don’t even have the practical means of cracking down on. It just seems like we’re shooting ourself in the foot trying to get such tiny little offsets that aren’t even practical in an effort to seem convenient to btc shorters.
TL:DR
%0.2 offset is impractical from even a technical perspective, never mind a financial one. If our liquidity providers wise up technically, they will take advantage of this. If they don’t, they will lose money until they are driven away.
