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RE: How Is The HBD Liquidity Doing? | Data On HBD Liquidity And Trading Volume

in LeoFinance2 years ago

I'm not thrilled with the idea because: a) market making has risk, I'd rather not take risk with DHF funds (but someone else can make a proposal to do so and perhaps it gets approved); (b) market making requires keeping capital while the stabilizer returns the funds to DHF as quickly as possible; (c) market making done right should make a profit, so there is no reason why someone can't do it with their own funds, particularly with stabilizer as a regular customer.

I do run a small market maker with my own funds (@teamsmooth-mm), but the order size is only 500 HBD. It keeps about 1% spread and makes a little, but it's not the smartest possible market maker by far. It's actually quite dumb, just smart enough to not systematically lose (hopefully).