Pools are for sure more centralized as individual LPC would be.
But in fact liquidity providing is even more centralized right now with almost all liquidity being provided by @KTm and @jmiller.
Pools could be a step into the right direction; liquidity providing mustn’t end at pools.
But I guess that the fees for being a pool member could be somewhat different from mining pools. Another aspect that will hinder wide-spread adoption of pools is the need to trust the pool with money.
So I think and hope that pools can play a role, but it will be hard for them to dominate the liquidity market.
It all depends on the fee that will be paid for liquidity providing long-term, once this business is standardized.
This is in my opinion still the main reason: standardization.
I’m not saying that we need a blue print and everybody has to follow that precisely.
But I for one didn’t know what it’s required to be a LPC in enough detail to make a decision for providing a proposal - even if I had the funds (and I read as much as I can here in the forum and consider myself familiar with big parts of the Nu network).
- where do you host the NuBot (I guess a server; if hosted at home: does it work if you have an internet access with changing IP address; besides I wouldn’t want to trust a server with hosting the bot…)?
- how much effort is the operation of it?
- what happens if a malfunction of the NuBot leads to loss of money?
- is there a monitoring of the NuBot (e.g. an email being sent it if shuts down)?
- what other (manual) activities are required?
I think it will bring a lot LPC in the game if there’s a checklist and a kind of guide how to do it.
Just like @creon said: you need to dig deep for the information you need to become LPC or even make an educated guess whether or not you can/want to be one.
If it’s easy enough, there will be way more LPCs than now.
The entry seems to be the main problem.
We need to make it more convenient.
Say it would be not very much effort maintaining it; installing a NuBot could be done like installing an application on your PC, configuring some parameters and that’s it.
That would attract some LPCs.
Currently it seems to be complicated; so complicated that a lot of compensation for the LPC seems to be appropriate - otherwise they wouldn’t get any votes.