Hey, MTGox - pay for liquidity provision!

realnowhereman

hero member

Activity: 504

Merit: 502

Quote from: EuSouBitcoin on March 22, 2012, 08:32:50 AM

Quote from: realnowhereman on March 20, 2012, 11:43:32 AM

Intersango already does this.

Intersango just reduces the amount they charge liquidity providers and increase the commission that liquidity takers pay. At Intersango, right now
Liquidity Providers PAY 0.35%
Liquidity Takers PAY 0.95%

True enough. I was sloppy there. You're absolutely right: it's not possible to get a net reward from an Intersango trade. It's just varying degrees of cost. Unfortunately.

EuSouBitcoin

sr. member

Activity: 490

Merit: 251

Quote from: realnowhereman on March 20, 2012, 11:43:32 AM

Intersango already does this.

Intersango just reduces the amount they charge liquidity providers and increase the commission that liquidity takers pay. At Intersango, right now
Liquidity Providers PAY 0.35%
Liquidity Takers PAY 0.95%

The only exchange that I know of that actually gives a net rebate is
www.bitfloor.com
where
Liquidity Providers RECEIVE 0.10% and
Liquidity Takers PAY 0.4%

I trade at BitFloor and it's got a lot going for it. Deposit USD via Dwolla or Mt Gox code. Withdraw USD via Dwolla. Check it out.

Littleshop

legendary

Activity: 1386

Merit: 1004

Quote from: arabianights on March 20, 2012, 10:53:15 AM

I've an idea, shamelessly stolen from many other non bitcoin exchanges.

Start paying liquidity providers - or at least letting them trade for free. You can do this by increasing the trading fee for people demanding liqudity.

This will hugely benefit everyone by massively increasing liquidity and bringing market volatility down. It will also benefit you by increasing trading volumes.

MTGOX is liquidity in the bitcoin world. Sorry, that bitcoin is not big enough for you right now but MTGOX has 10x the liquidity of other exchanges. Paying might bring some more, but it is the other exchanges (that are not now paying) that need to pay just as one of them is.

Free trading is the other way, and crypto did it for a short period and they had much better liquidity during that time. They can not do it forever, but I do not think they did it long enough to have the desired impact.

arabianights

newbie

Activity: 53

Merit: 0

Quote from: realnowhereman on March 20, 2012, 11:43:32 AM

Intersango already does this.

So it does.

I may have a go at market making on it in a couple of weeks when I have some spare time.

Even so... the fees they are charging are still far too high, if I understand them correctly. They should be comparable to the tick size in an instrument of this volatility .

copumpkin

donator

Activity: 266

Merit: 252

I'm actually a pineapple

Quote from: arabianights on March 20, 2012, 10:53:15 AM

I've an idea, shamelessly stolen from many other non bitcoin exchanges.

Start paying liquidity providers - or at least letting them trade for free. You can do this by increasing the trading fee for people demanding liqudity.

This will hugely benefit everyone by massively increasing liquidity and bringing market volatility down. It will also benefit you by increasing trading volumes.

I've been suggesting this in their IRC channel for many months now, but they don't seem particularly interested in changing their fee structure.

John (John K.)

legendary

Activity: 1288

Merit: 1227

Away on an extended break

This should go to the Trading Discussion subforum lol.

realnowhereman

hero member

Activity: 504

Merit: 502

Intersango already does this.

arabianights

newbie

Activity: 53

Merit: 0

I've an idea, shamelessly stolen from many other non bitcoin exchanges.

Start paying liquidity providers - or at least letting them trade for free. You can do this by increasing the trading fee for people demanding liqudity.

This will hugely benefit everyone by massively increasing liquidity and bringing market volatility down. It will also benefit you by increasing trading volumes.

Topic: Hey, MTGox - pay for liquidity provision! (Read 1703 times)