I created some more Diesel Pools. Welcome BTC, LTC, EOS, STEEM, DOGE, BCH to the mix

in #hive-engine4 months ago

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Good morning frens. Diesel Pools are off to a fine start. So, I added several more pools to the mix. You can find some of your favorite cryptocurrencies on there now.

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Furthermore, I've added several thousand dollars of liquidity to several of the pools. It's not a ton, but it's a start to help people trade small amounts for free.

I didn't have any BCH or EOS handy, so it they still need some starting funds, but with rewards coming soon I imagine folks will provide some.

Rewards coming

I believe we'll have the backend work done next week, and possibly all of the work done next week to allow users to create pool rewards. So, if you want to reward users with your tokens for participating in any of the pools that will start as early as next week or maybe in the next 2.

BEE

I still need to run this by the Hive-Engine witnesses, but my plan is to award BEE for liquidity providers. Start with relatively small amounts per year for early pool stakers. I'll work to build a decentralized autonomous funding tool and part of the allowed proposals will be to fund various liquidity pools. Those who are staking BEE will be able to determine where BEE inflation will go.

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How about adding a small fee for every swap and use the fee to reward liquidity providers like Uniswap does?

Yeah, I'm in favour of this too. A fee schedule settable by the pool creator; what percentages go to: pool creator, liquidity providers, both of which could be zero though I'd suggest the liquidity providers should get something.

Would be nice if the Pool creator could make it an option.
I guess we should see what reward mechanism they have planned

Sometimes I think we have on hive superior-tech + smart people, but they think things don't to the end.

No fees = why someone should do it?

Fee = passive income = sexy.

To get crazy amounts of liquidity there need to be fees. There is no transaction fee so it's already superior to Uniswap. It only needs rewards that are a bit higher or same as on uniswap and it's better from the technical level.

I like this!

Pool without FEE sounds great, but we are forgetting what you just said... Uniswap has DOUBLE fees (if we simplify things), the transaction fee, and the pool fee...

Diesel pools have ANY fees, but maybe we should be proud of having ZERO transaction fees and the rest do like Uniswap and others?

yup, fees are good for getting liquidity in Millions/billions like uniswap because users can earn with their crypto.

No fees is not a business model. It can be optional but not the only option.

I would say the standard is the Uniswap fee ( without gas) and it can be lower. But lower wouldn't make any sense.

Any plans to support chaining, swapping PAL to BEE in one transaction via PAL->SWAP.HIVE->BEE?

I know this is a total newb question. How and where do we go to take part in these diesel pools?

Posted Using LeoFinance Beta

UPDATE: While NOT specified either way in the above post, I've since been told that the proposed BEE awards for liquidity providers will not be volume-based, so the wash-trade based attack I outline below would not apply. I have left it in place for transparency.

Don't award Diesel liquidity providers with BEE because it's gameable.
If the rewards are volume-based and feeless then there is a wash trading situation.
Here's how: Create two coins and a pool (1200BEE) make the coins untradeable and issue all the coins to myself. e.g. CANCER<->SHITCOIN. Deposit most of CANCER and SHITCOIN into the pool. Here's the game: trade my CANCER for SHITCOIN and back and forth as fast as the blockchain allows. Now the pool's had a ton of [wash] volume. How then is that pool evaluated against legit pools for BEE rewards.

Better to offer %trade fees settable at pool creation and maybe either a permanent lock or the pool creator has to pay BEE to modify the pool fee schedule (and the change is time locked forward). A scheme to reward liquidity providers with a third token is also a great idea, though the pool creator has to supply those tokens (via inflation or a reserve).
I'm working on an article (any day now) about why zero swap fee pools are a bad idea that results in very low liquidity and high slippage. Zero-gas fees are awesome. Zero swap fees are not.

I'll wait until further details are public before commenting further except to say that I am generally sceptical of decoupling desired behaviours from their rewards.

Great comment and I do agree with you... You have perfectly described the process of milking the system... Like I said in another comment, and you at the end of this one... Let's promote Diesel Pools like ZERP transaction fee pools, but keep swap fees...

Posted Using LeoFinance Beta

I believe this comment needs some attention.

It also stands that those providing liquidity in something like BTC should get more than those that provide liquidity in SHITCOIN.

You are correct, but such choices should be governed by a transparent algorithm or process. In my example above, CANCER and SHITCOIN are made non-tradeable and issued only to the issuer's account so that no form of external market-discovery can occur. For all anybody knows, one of just ten CANCER coins could represent mineral mining rights in the CANCER constellation and then each coin would be worth gajillions. But, without market-discovery, there's no way an algorithm can know.

Awesome job, Glad to see more pools. We need some articles now out side of hive shilling the pools.

Where do he coins that you earn from the pools show up? For example, I have some Neoxian and DEC in the respective pools. What should I be looking for in my wallet to know I got paid out? Thanks,

Posted Using LeoFinance Beta

I don't think there are any rewards right now for contributing to the pool.

Posted Using LeoFinance Beta

Ah! That may explain it! What is the point then I wonder?

Posted Using LeoFinance Beta

Could be an early bonus.. never know its crypto ain't it.

That would be nice!

Posted Using LeoFinance Beta

Rewards will be added.

Okay thanks! I appreciate it!

Posted Using LeoFinance Beta

In a previous post it was insinuated that participation at this point is more or less just for altruistic testing. Rewards and incentives will come later. Having said that, though, I wouldn't be surprised if there was something cooked in down the line that rewards early contributors. I hope so anyway :D

However, I did not understand the rewards. If I add HIVE-BCH liquidity, what do I earn and in what percentage? 🙄

Keep up the good work!

Posted Using LeoFinance Beta

I feel like there has to be some type of reward otherwise is there a point besides wanting to help?
Curious how the rewards will work for locking up funds in a diesel pool

Posted Using LeoFinance Beta

...but my plan is to award BEE for liquidity providers....

with DEC/ HIVE . Take half the DEC from the DEC / DAI pool to give as reward. :)

Would still prefer a DEC / stable HBD pool over a HIVE / DEC pool. seems to me the same as a DEC / DIA pool but with cheaper transaction fees

Wouldn't it be beneficial to have non swap.hive pair considering swap.hive already exists on market?

I dont understand the incentive for people to swap over using the hive engine exchange, would you explain it to me? I do understand the incentive for liquidity providers, if tokens are given out as reward (from inflation), but what is swap’ers incentive?

to get the coin they want more than the coin they got

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