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Twarden

Seeking market making service

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Can we define the term "market maker services" for purposes of this discussion?  I'm wondering if you just mean whale traders with bots, or if you mean a gateway itself, or if you mean a bank backing a gateway. 

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1 minute ago, Hodor said:

Can we define the term "market maker services" for purposes of this discussion?  I'm wondering if you just mean whale traders with bots, or if you mean a gateway itself, or if you mean a bank backing a gateway. 

Probably all of them. Anyone who can provide liquidity in order books.

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On 11/02/2016 at 6:02 AM, T8493 said:

Probably all of them. Anyone who can provide liquidity in order books.

Yes, I am looking for anyone who is willing to provide liquidity to the ~Xagate markets.  I'm not too sure about it happening though.

On 11/02/2016 at 0:10 AM, T8493 said:

I think the most reliable way to boost liquidity is to write your own bots. There are probably not enough profits for other parties to do it currently.

I may have to look into ripple stream in the future if I cannot find a third party willing to assist. 

Edited by Twarden
I'm not too sure about* it happening though.

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I'm (somewhat) new to the Ripple community from the Bitcoin markets, but love the built-in exchange concept. @Twarden, might you tell us more specifics? The desired spread and market depth is a good place to start. What type of volume are you doing, and do you expect to do in the short term? Is your gateway gaining market traction?

 

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The Ethereum market has gained some interest but besides that the largest remittances is our Canadian dollars through ~Rippleunion.  I have also seen some usage of our Bitcoin IOUs with the outbound transaction volume totaling approximately 0.14 BTC in the recent weeks.  There is minimal NXT issuances on the network originating from crowdfunding via an NXT asset and the AGATES cryptocurrency/issuances.  The XAG available on the network was issued from my personal supply at launch and is owned by a third party but the market depth for all precious metals is unfortunately severely lacking interest despite the competitive fee schedule.  Desired spreads and market depths differ reliant upon issue such as this. An example of how market depth could be affecting interest (or trust) could be that XAG.XAGATE's redemption policy as it is currently stated within the Terms of Service that certain limits apply when clientele request physical delivery of their silver (while a floating limit dependent on the CAD market rates fluctuate between 3-5 an applies for gold and the PGMs).  A reasonable minimum limit of PMs of 10 ozt is in place at this time but the current supply lacks the possibility of physical delivery at this time because I did not (an still do not) have enough personal funds for investing into all of the markets currently offered.  Last, I have wrote you a PM to discuss your potential interest in the Gateway.

Edited by Twarden
clarified all PMs' minimum withdrawal limits

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26 minutes ago, Twarden said:

The Ethereum market has gained some interest but besides that the largest remittances is our Canadian dollars through ~Rippleunion.  I have also seen some usage of our Bitcoin IOUs with the outbound transaction volume totaling approximately 0.14 BTC in the recent weeks.  There is minimal NXT issuances on the network originating from crowdfunding via an NXT asset and the AGATES cryptocurrency/issuances.  The XAG available on the network was issued from my personal supply at launch and is owned by a third party but the market depth for all precious metals is unfortunately severely lacking interest despite the competitive fee schedule.  Desired spreads and market depths differ reliant upon issue such as this. An example of how market depth could be affecting interest (or trust) could be that XAG.XAGATE's redemption policy as it is currently stated within the Terms of Service that certain limits apply when clientele request physical delivery of their silver (while a floating limit dependent on the CAD market rates fluctuate between 3-5 an applies for gold and the PGMs).  A reasonable minimum limit of PMs of 10 ozt is in place at this time but the current supply lacks the possibility of physical delivery at this time because I did not (an still do not) have enough personal funds for investing into all of the markets currently offered.  Last, I have wrote you a PM to discuss your potential interest in the Gateway.

If you are looking for market maker service, I would categorize it as algorithmic trading strategy. On Quantopian.com for instance there is a big community of traders, and if you give some input of what can be done in theory, then maybe someone is interested and recognizes it as a some application area where concepts exist.

My suggestion to improve Ripple as a market place would be adding leveraged trading that can be done with a Dai implemention. Currency trading always involves leverage, and without that feature a marketplace is incomplete. Another suggestion would be basket trading, where a portfolio composition of a fiat/metal/crypto combination can be traded atomically. Interactive Brokers is offering such a thing, however decent liquidity is required.

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I think we can all agree that the Ripple markets are incomplete, but I've also understood traditional financial / FX markets to also be incomplete. In theory, you might only consider a marketplace to be complete if you could hedge any possible position. Let's put that aside and get to the point though ...

18 minutes ago, yandel said:

If you are looking for market maker service, I would categorize it as algorithmic trading strategy. On Quantopian.com for instance there is a big community of traders, and if you give some input of what can be done in theory, then maybe someone is interested and recognizes it as a some application area where concepts exist.

Ripple needs algorithmic traders that can enable on-demand bots from asset ABC to XRP. From there, the pathfinding engine can help connect the gateways assets to other assets on the network, and the scaling begins. Do such services currently exist on Ripple? Does Gatehub offer this service? While Quantopian might be a reasonable source for a theoretical model, you further need to interface with the Ripple APIs, and "decentralized" applications in general. Perhaps these have been barriers of entry to making Ripple grow to date.

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On 2/11/2016 at 3:00 AM, Hodor said:

Can we define the term "market maker services" for purposes of this discussion?  I'm wondering if you just mean whale traders with bots, or if you mean a gateway itself, or if you mean a bank backing a gateway. 

I would define it as someone posting bids and asks for assets trading into, and out of XRP, at a defined spread and calculated risk. They don't have to be whales, but they do need to own the asset on each side of the market. 

.... Are there any banks (FX Desks) backing gateways on Ripple? Do you have a link?

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13 minutes ago, oxygenforex said:

I think we can all agree that the Ripple markets are incomplete, but I've also understood traditional financial / FX markets to also be incomplete. In theory, you might only consider a marketplace to be complete if you could hedge any possible position. Let's put that aside and get to the point though ...

Ripple needs algorithmic traders that can enable on-demand bots from asset ABC to XRP. From there, the pathfinding engine can help connect the gateways assets to other assets on the network, and the scaling begins. Do such services currently exist on Ripple? Does Gatehub offer this service? While Quantopian might be a reasonable source for a theoretical model, you further need to interface with the Ripple APIs, and "decentralized" applications in general. Perhaps these have been barriers of entry to making Ripple grow to date.

Anyway, Ripple is not really a market place because the trading volume has no impact on markets (except for the house XRP). The problem for Ripple is getting competitive spreads and liquidity in the fiat space. This is basically a task of duplicating the markets from somewhere else. In my opinion, and within the concept of a bridge currency, it should be attempted with pegged coins and an arbitrage strategy to other fx markets...XRP as a plain cryptocurrency can't do that job, advanced/refined concepts are needed. However, Ripple is not advancing technically as a platform (in contrast to Ethereum which is absolutely great in its possibilities), and thereby cannot advance and refine its operations... And no, ILP does not help with that deficiency.

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