[Passed] Motion to regulate spread values for liquidity operations

NuShares Motions
#81

Looks like it’s going to pass after all…

#82

This motion has passed. Thanks to everyone who participated in this discussion, and to the network whether or not they voted for this motion.

If an operator has concerns on complying this motion I am happy to help with the clarification of the rules and other things.

This motion may not be perfect but we look forward to bringing out the best practices for liquidity provision through experimentation and shareholder agreement.

I am aware of concerns on the perceived weakness of a slightly looser peg, but a majority has decided that the benefits overweigh the drawbacks. I expect that a loose peg can be seen as a safetly line for users while trades can decide to trade at smaller spreads, as @pennybreaker seems to also suggest.

1 Like
#83
#84

This requires 1% more Share days destroyed. Please do not stop voting for it quite yet.

1 Like
#85

Please change the prefix of the title from [passed] to [voting] since it is not passed yet as pointed out by @Nagalim

#86

I suppose now that each liquidity pool manager will reward each participant contributing to the peg with a liquidity that matches the condition imposed by the pool on the spread. In other words, the pool will reward up to a certain amount of liquidity on a specific side (buy or sell) up to a certain spread.
The question that I have is: are you going to be more rewarded if you tolerate a smaller spread than someone else that set a higher spread?

#87

I see the effects of this motion as follows:

  1. Pybot operators will need to link to a pool repo with the appropriate ‘spread’ or ‘offset’ parameter. They will also need to restart their servers with an appropriate tolerance. NuBot operators will need to adjust their order placement as well.

  2. In the future, when pybot is replaced by a nubot push system (parametric order book) this motion states the playground that shareholders are willing to tolerate. This is a good framework to build off of that we can change if we need to.

  3. The overall effect this motion has is to stimulate the market to hold the tight peg such that we can reduce custodial compensation.

#88

Hazah! Passed

1 Like
#89

Today I am pushing out some code to enforce this motion in Nubot. Will see it live in next release.

3 Likes