The target is a minimum not a maximum.
I disagree. And for a lot of reasons. Let’s start with the big one: centralization. As you can see, the price streamer requires a ‘restart’ from a central body. Almost no matter what, in order to keep everyone on the same price at the same time there has to be centralization, unless we make an entire blockchain just for nubot. This is woefully less robust than what we have now, people using their own derived price feeds.
My ideal LP is one where people design their bots themselves to take advantage of the market and slightly move their orders around in the allowed spread band to either reduce or increase their exposure to market orders.
Furthermore, if everyone moves their orders all at once it looks a lot like manipulation. Sure, if they go and read all the threads in Nu and keep up on the nubot development, maybe they’ll know about price streamers and a bunch of other complex concepts, but likely not. Image on the orderbook is very important and the image of a single wall moving at once is one of centralization. And funny enough, that’s because it is (see first point).
If i add in a line in my bot to wait 1 second before placing my order on top of everyone else’s order I can almost guarentee that I will never participate in a trade unless the entire liquidity is eaten. In fact, this would be very profitable because i would likely be one of the few remaining on the weak side and get paid the most.
I very much prefer the spread band model to the individual spread model. Note that so far every operation but the Tube has been using the spread band model without really talking about it. That’s what all our deviation conversations were about.
The best way to avoid collisions is to set an offset that gives a reasonable minimum spread when you take into account wallshiftthreshold and similar parameters and factors.
