DSwap update: 50% gains in a month of market making. What are you waiting for?

in #dswap18 days ago


I'm stealing @cryptomancer's thunder a little and hopefully he'll forgive me, but he gave me a small update on today's call and I just can't wait.

He's been running the trading bot for almost exactly a month. And the damn thing is up 50% from where it started. He has a post coming out with more information, but that's huge. What's the compound math on being up 50% in a month over a year??? It's absurd.

Now past performance doesn't guarantee future gains, and the trading strategies deployed may not play out perfectly for everyone, but if you've got a hefty set of whaleballs and are wondering how to put your capital to work consider using dswap.

Currently there are 15 people running market makers in a total of 18 markets. Over the next few weeks we plan to add another trading strategy and put some tools in place to shut down trading automatically under certain user set conditions to prevent loss of funds in unfriendly trading environments (as determined by you).



Yesterday there was a brief outage in the automated service of swapping hive for smart contract hive. One of the key problems was a bug in Beem, which Holger has fixed. The second was in a weird case of an RPC not returning information. Anyone who had a delayed withdrawal should have had their withdrawal processed by now. If not please drop a support ticket.

Please note, we have servers that have different tasks, the Engine nodes, account history nodes, the deposit/withdrawal nodes, and daemons for other blockchains. Only the servers doing the deposit/withdrawal were effected. The Engine nodes and account history nodes are working great. With Beem now fixed we're back functioning again and believe that we're fully ready for HF24. Assuming the chain doesn't halt we should be good to go.

Engine powers a ton of this ecosystem!

In case you missed it, dozens of tribes, multiple games, and a handful of websites are now all powered by the Engine ecosystem. If you're not regularly using Engine you may be missing out on great trading opportunities and missing a lot of what the Hive ecosystem has to offer.

Please check out nftshowroom.com for an art trading platform.
Please check out lensy.io for a photography trading platform.

Soon we'll have a NSFW site up and running. We're also working on decentralized gambling (but not if you're domiciled in the US).

I'm also working on a system where you can launch your own collectibles in packs. There's a lot going on here.

If you'd like to support the ecosystem consider picking up some BEE, WORKERBEE, Tribe tokens, Tribe miners, starting a tribe, engaging those sites, and sharing it all on social media.


Sorry but the title and post statement is totally wrong. I have a market maker bot on dec/swap.hive for almost a half year and my profits went down significantly after the market maker by hive engine/dswap team was released.

You mislead people with 50% gains from it because it is impossible with market maker on such shalow market like hive engine is. The more bots the lower income, and I can say it from my perspective as active market maker for months. The more market makers are started by people the least profit will it bring for single person. Sad but true on small markets.

You didnt also say from which market cryptomancer had the 50% gain, but it is important to know that price changes affect higly the income. It is high risk when market making pairs that can go only one way. Dec is pretty good token for mm because of almost sinusoidal price change (always 0.2-0.8, always chance for rebound).

I mean, he's got a 50% increase. That's not misleading. This bot can be extremely successful. I'm not sure of the logic of your bot or strategy so I can't share anything about that.

I'm trying not to steal all of his thunder as he's running on multiple markets and he's planning to post what's happened. it's a single data point, but a damn good one.

Can match that up with Neal's post earlier of a 37% annualized return. Obviously not everyone is getting the same results, but I think as people get a better grip on how to use these effetively that there's a crap ton of potential in them.

When teh market taking side is implemented onto hive-engine and some of the sites that use it so taht you can spend whatever token you want and it gets converted into swap.hive for the purpose of the backend of the site then I think things really start ramping up. Should be fun to watch.

So you mean gain from previous results, but this doesnt say much and is very misleading.

there's a crap ton of potential in them

There is 0 potential in them because hive engine market is too small, there is only place for few makers. Even when I was competing against only 1 other bot I needed to change strategies and polish the algorithm. And even that I was using biggest pair dec wasnt enough.

In the end it doesnt matter what strategy I have or other bots have. It comes down to spread, and prices fluctuations and depth of the market which is really really small. Actually market making can end tragicly for people who dont know what they do.

Even in the deep markets like uniswap people lose money when providing liquidity because they dont understand the math and what imparment loss is.

If we want to make deeper market on HE simply by using more and more market makers it will end very badly because in the end always somebody must lose.

However this could be fun for bots war :) I can change my code very fast and try to outplay market makers by dswap :) Can dswap do it too?

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

If I had time and if it would be worth the effort I am 100% sure that I could earn at the cost of the market marker bots. Your strategy is not open, so that is much more difficult to beat. Their strategy, however, is completely transparent, so I know what they are going to do next - this cannot work unless the profits to be made from this are too small to invest the time that is needed.

I think you should be more straightforward and direct with your risk warning. You should be telling people only to invest what they can afford to lose, and that this is very high risk. There will be draw downs and blow-ups for sure. Market making is high risk, and there is no holy grail. If there were, you can bet that Wall Street would have already found it.

I never used the swap ability until fairly recently and it’s been great. I would love to learn more about the ability to set up automatic trades! Really blows that the exchanges available to people in the US don’t have the ability to automate trades via buy and sell prices, at least to my knowledge. If this works out well I’ll be using it quite often!

Swap bitcoin has been a solid investment for me, hoping to add more to that!

Well thanks for creating engine and everything that is build on it!
Cant imagen this place without all the engine related projects.

@aggroed how much work would it be to get Smart contracts to the Hive native Blockchain? Do you feel that can be done?

I think that would bring Hive to the next level and Hive Engine is the nitro to power it up :)

Well, generally speaking I think completely open smart contracts on any platform is a dumb plan. Human ingenuity>>>Server. After enough time passes I don't think any server will be able to handle them all. With Hive-Engine we're hoping to allow something like ~12 different smart contracts to build off of, and then people are really on their own to build smart contracts of their own through another layer.

OK thanks, so Smart Contracts like on ETH are not good for Hive, maybe with some premade Smart contracts? Would it work out? As far i know Hive is more scalable as Eth?

in general i think Hive Engine is awesome. But i think the real power comes after Smts on Hive. Tokens on first layer and smart contracts via Hive Engine on secend would be also really cool and better to promote, because its more easy to understand :).

Always adding value to Hive thanks, mate.!

Haha, you can't steal my thunder because it's your thunder too! In fact, it's everyone's thunder! For too long, market maker bots on Hive & Steem have been the specialized domain of those few with the highly technical skills needed to code & run them. But now we're bringing bots to the masses! Anyone can use DSwap to have their own market maker up and placing orders in just a few minutes, by filling out a few fields on a setup form.

Now, I make that sound easy, and it is, but making sure it stays profitable is a bit more challenging as others have pointed out in their comments. You have to monitor performance and fiddle with the settings to optimize behavior for current market conditions. You have to know when to turn off the bot to protect yourself in periods of rapid price movement, and when to crank it up to place orders more aggressively. So it's not just a passive set-it-and-forget-it kind of investment. Active management is required; it's one part science, and one part art. Performance and returns will vary considerably.

But clearly there is a great deal of potential here. You can't argue with my 50% return after a month of using the market maker. That's a simple fact. Of course past performance is not a reliable indicator of future gains, but I'm nonetheless feeling pretty encouraged by these promising early results.

I'll have a post coming out later describing my early experience with the market maker in more detail, and sharing some tips for how you can get the most out of it.

We're also working on decentralized gambling (but not if you're domiciled in the US).

not-really-decentralized gambling?