RE: Proposal for SBD Liquidity Provision and Market Making (MM) Bot Development for the STEEM Ecosystem
I agree with @danmaruschak's points. I don't understand how you plan to use SP to maintain liquidity, and 100 SBD per day seems like a lot. Is this proposal going to be submitted into the SPS, or is the word "proposal" here intended more like "suggestion" or "idea"? I don't see a proposal in the SPS yet.
Additionally, what about time frames and deliverables? 100 SBD per day for how long? When would delivery be expected? How much burning do you expect to accomplish via arbitrage?
Also, maybe people who buy SBDs at above $1 should expect to take a loss. It was intended as a stable coin, and I'm not in favor of using SPS funding to support an artificially high price of SBDs.
Lastly, maybe this sort of idea should be coupled with a revamp of the blockchain's liquidity rewards capability? Perhaps that would provide competitive funding for diverse MM implementations, instead of locking the blockchain into a single provider(?).
As a general concept, I'm in favor of providing liquidity and expanding access to STEEM/SBD trading, but I don't fully understand the plan here.
I explained above why SP is needed. You can refer to it.
We need to build various MM bots and systems. During the development period, we will need the support of DAO.
I did not submit SPS because it is currently under discussion.
If everything is discussed, we will submit SPS and start voting.
This MM bot is not intended to artificially keep SBD at a high price.
MM bots and strategies are very diverse. We only provide liquidity through MM and react to market price changes.
And it is difficult to create market price changes with 10K USD of liquidity supply.
How much STEEM can be burned will depend on the trading volume and market conditions.
0.00 SBD,
4.51 STEEM,
4.51 SP