I’ve openned this new topic to exchange ideas about how to increase liquidity in Safex. There should be both social and programming skills applied here in order to achieve our main goal of mainstreaming this!
I begin talking about the Crypto Exchange section of Safex. Value of fees will be an important decision to make, but i will focus in another direction.
I’m thinking about if it is possible to Safex merge sell and buy orders of several other exchanges in one big order book. But, here’s the new stuff: people could add to this merge their direct buy and sell orders.
We could have two kinds of trading fees:
i. One that is the original exchange fee plus x. Why someone would pay this (fee + x)? Because x is the price of anonimity and convinience (no necessity of matching KYC is a product here);
ii. Other being a fee (cheaper) of a direct buy or sell on Safex environment. I believe the original plans just consider this kind of fee.
I don’t know how it could be done, thou. Here are some problems that i see (but somehow shapeshift solved it…). The first one is to have a “Safex user” entity, logged in all those exchanges (buying and selling cryptos), then there’s a problem with speed of transaction (maybe it could be done in hours, with a delay).
I believe that it’s a monumental ammount of programming work, but if it’s implemmented, the safex crypto exchange section could introduce many to our main product here, the Descentralized Markeplace.
I think this would be pretty tough to solve without a centralized service that has accounts (for speed unlike shapeshift) open with funds on each exchange. This is really interesting though, if an exchange would provide liquidity to all exchanges at the same time.
Here the biggest issue is that exchange that offers something like this would need big $$ in every coin to store it everywhere to provide the market.
(hope I understood you here)
@uqaz, this is very early stage but Safex community growing everyday, we spent 2 months setting up our outreach. Also, (early stage) an investment fund is being prepared that will be engaged in Safex/Chille (and other cryptos as well). Though, do keep your ideas flowing
I’m saying liquidity will continue to grow, and our partners will continue to grow. Biggest impact we will have is launching Chille and seeing dividends flowing into Safex Coin wallets.
I agree to all, maybe it is too early, of course. And you’re, it needs big money to absorve hard intraday variations of crypto. But… possible… if we have this Safex entity (that we discussed early as an instrument for marketing)
And you are also right about dividends atracting people to this. One SAFEX now is purchased by 43 satoshis. I believe the minimum price for Chille is 1 satoshi. What’s the innitial yield for SAFEX holders in the deploy of Chille Blockchain?
another important point: We’re just regaining momentum after being so heavily invested in maidsafe before, so we’ve only begun to make up lost ground. No problem I love the fact that no one can say we cant be worth more than maidsafe anymore
We’ll know what the 0.5% equals once we have a model together related to money supply. It is still being worked on, and when the model is prepared we can have a good discussion about it before adopting money supply and emission rate.
Do we have fees for trades? I can see large liquidity providers wanting lower fees. Maybe the fees can scale down as transactions or amount purchased/sold increase. I think polo does something similar to this. Let’s face it, crypto is rife with manipulation. Allowing for scaling fees means that whales can pump a coin with minimal loss.
Also, perhaps dividends can be issued for people to hold a buy or sell walls within a certain area? (valued by amount and btc comparable price/certain area can be moving average of price along with some other measures) We need an incentive for there to be market depth. Sort of like staking for holding a buy or sell wall.
I think shapeshift just purchases the coins from other exchanges through some api? Their liquidity is that of many exchanges combined… I think? Because we are decentralized, Idk if that’s possible.
Aren’t divs paid by transaction fees on this exchange? Having walls improves liquidity. Not sure about the mechanics but improving liquidity means having walls up. The bitshares exchange & the nxt AE are somewhat failures due to low liquidity. So are some of the centralized exchanges (cryptopia etc). The spreads are too high. It would be cool to incentivize spread minimization somehow. Maybe transaction fees can be distributed to wall holders. More liquidity means more people will use the exchange. More people mean more fees. Creates a cycle and is kinda like self promotion.
Wall holders benefit sellers and buyers. For example, if I tried to buy agoras right now I would likely have to buy for a higher price than it is currently in the market. This is because there are not many sellers. As an investor I would like to pay as little as I can. Improved liquidity does this. Some investors would even be willing to pay a small premium for liquidity for a certain coin. Ex: Put a 7 btc wall at x price and I will pay you y amount. Maybe that can be used too…
I see the goal here, but i can’t figure how to organize this. I’m also aware of bitshares and those wanna-be-big exchanges failures.
Thing is, if you are inside the book of orders, you are interfering in it. That could genetate future “entropy”, or could be perceived, negatively, as fake volume (like china’s was).
Those wall owners could earn divs being also Safex owners.
Maybe, pie in the sky, if you have a minimum ammount of Safex, you could have free fees (Hey, another incentive for Safex, daytraders would looove it)… but this would need further discussion.
If they posess Safex tokens, they can provide liquidity and get a cut for it. I think Agoras tokens could be bought in the market place section, where i believe there will be a board for offers of goods.
I’m a fan of localbitcoins simplicity. A simple txt board explainning the offer conditions (stating informations like e-mail contacts or recomendations) would be enough i guess.
Chille Coin is under heavy utility: people are selling goods and services, and people are acquiring Chille coins to purchase on the marketplace/are earning them likewise through selling goods and services.
A marketmaker is playing any spread available in high enough volumes that they earn a profit.
Safex holders win enough dividends that the development treasury cranks out features to fuel the above, and safex holders utilize coins/horde coins/sell coins.
Buy walls don’t really do anything TBH only create a false sense of security, you do not need a buy wall as long as people are consistently using Buying and Selling coins for their own reasons. The more participants the more diverse those reasons and frequencies occur.
Oh, that’s new, the purchase coin will be Chille in the marketplace! I thought Chilles would only be needed in fueling smartcontracts (creating and maintainning them).
That’s different, it’s like using a privacy coin to a specific utility. Question is, can other coins be automatically converted to Chilles, or one would need to buy Chilles just for marketplace operations?
Thanks! Those different needs for Chille will only make it robust. We only have to be careful not to create artificial needs. I mean, if a guy buys an ice cream in Safex with bitcoins, he loses his anonimacy i guess. But using Dash, no…
In order to buy an ice cream in Safex, this guy can only use Chilles? Will it bem mandatory? Or he can choose?
Yes of course need to use Chille it is mandatory, because with Chille Blockchain you clear your ice cream trade on the blockchain itself, you dont need to go to a website to do your trades that is the major difference.
Okay, ice cream guy has Chille wallet, and you have chille wallet… you can directly transfer to his wallet, but you have no accountability.
With Chille blockchain ice cream guy lists his ice creams, you buy it get a receipt, and it can get more complex you can use escrow.
With bitcoin you need to use a third party service to buy and sell or send directly to someone’s wallet, this to me and many people is problematic.
The key point is Chille lets you trade and clear without third party involvement of any kind. The blockchain nodes clear the trades between people and host product and service listings.
Now I get it why it is superior to Dash, because there’s a technnichal bond between them AND keeps anonimity.
That is not artificial at all! Now I get it when you say marketplace activity per se will improve Chille’s liquidity!
And when I say “automatically”, i mean no bargainning to buy Chilles with bitcoin/alts when u hit buy button to order your ice cream, it starts a buy order in Chille’s book of orders and give them to the seller (paying all fees of conversion, of course).
Wow, sorry to bother man, this line of thought is great, i’m trying to find strategic flaws here but found none yet. Hard roots in this project.
I like very much this marketplace section, but i think we can do neet things in the cryptoexchange section too.
I was remembering my days of crypto ICO flipenning and also contemplating this new page here: https://safex.io/keys , it makes things easier.
Man, i remember that the trading process was a bit complicated. You have bitcoins and bitcoin addresses and bitcoin wallets, you have Dash and Dash address and Dash wallets… All steps needed to be very well thought to exchange those coins. More steps, furthers the risks of human failure.
So here it goes. Can we have other cryptocoins public key/private key generators atached to the cryptoexchange section of Safex? It would make trading so much easier and practical… Other cool thing would be importing crypto private keys with balances, but i believe that is difficult to implemment (we are almost creating a poli-crypto wallet here lol)
We’re in progress of hiring a backend developer on web technologies. This will allow me to actualize some visions I have, exactly for poli-crypto wallet. I won’t be able to shoulder both tasks, but I can easily delegate to someone skilled who becomes trained in these matters.
Occurred to me that implemmentations like theses could be contracted by vote and the funds could come from the Safex entity.
I think i’m done, those last conversations made me want to buy more Safex lol. This can be huge, i’m already simulating a market cap for this and comparing it to Amazon (i do the same about bitcoin cap and the size of Gold).
