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Author Topic: Hey, MTGox - pay for liquidity provision!  (Read 1547 times)
arabianights
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March 20, 2012, 03:53:15 PM
 #1

I've an idea, shamelessly stolen from many other non bitcoin exchanges.

Start paying liquidity providers - or at least letting them trade for free. You can do this by increasing the trading fee for people demanding liqudity.

This will hugely benefit everyone by massively increasing liquidity and bringing market volatility down. It will also benefit you by increasing trading volumes.
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realnowhereman
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March 20, 2012, 04:43:32 PM
 #2

Intersango already does this.

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John (John K.)
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March 20, 2012, 04:49:09 PM
 #3

This should go to the Trading Discussion subforum lol.

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copumpkin
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March 20, 2012, 05:52:00 PM
 #4

I've an idea, shamelessly stolen from many other non bitcoin exchanges.

Start paying liquidity providers - or at least letting them trade for free. You can do this by increasing the trading fee for people demanding liqudity.

This will hugely benefit everyone by massively increasing liquidity and bringing market volatility down. It will also benefit you by increasing trading volumes.

I've been suggesting this in their IRC channel for many months now, but they don't seem particularly interested in changing their fee structure.
arabianights
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March 20, 2012, 06:15:20 PM
 #5

Intersango already does this.

So it does.

I may have a go at market making on it in a couple of weeks when I have some spare time.

Even so... the fees they are charging are still far too high, if I understand them correctly. They should be comparable to the tick size in an instrument of this volatility .
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March 21, 2012, 08:53:17 PM
 #6

I've an idea, shamelessly stolen from many other non bitcoin exchanges.

Start paying liquidity providers - or at least letting them trade for free. You can do this by increasing the trading fee for people demanding liqudity.

This will hugely benefit everyone by massively increasing liquidity and bringing market volatility down. It will also benefit you by increasing trading volumes.

MTGOX is liquidity in the bitcoin world.  Sorry, that bitcoin is not big enough for you right now but MTGOX has 10x the liquidity of other exchanges.  Paying might bring some more, but it is the other exchanges (that are not now paying) that need to pay just as one of them is. 

Free trading is the other way, and crypto did it for a short period and they had much better liquidity during that time.  They can not do it forever, but I do not think they did it long enough to have the desired impact. 

EuSouBitcoin
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March 22, 2012, 01:32:50 PM
 #7

Intersango already does this.

Intersango just reduces the amount they charge liquidity providers and increase the commission that liquidity takers pay. At Intersango, right now
Liquidity Providers PAY 0.35%
Liquidity Takers PAY 0.95%

The only exchange that I know of that actually gives a net rebate is
www.bitfloor.com
where
Liquidity Providers RECEIVE 0.10% and
Liquidity Takers PAY 0.4%

I trade at BitFloor and it's got a lot going for it. Deposit USD via Dwolla or Mt Gox code. Withdraw USD via Dwolla. Check it out.
realnowhereman
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March 22, 2012, 03:06:09 PM
 #8

Intersango already does this.

Intersango just reduces the amount they charge liquidity providers and increase the commission that liquidity takers pay. At Intersango, right now
Liquidity Providers PAY 0.35%
Liquidity Takers PAY 0.95%

True enough.  I was sloppy there.  You're absolutely right: it's not possible to get a net reward from an Intersango trade.  It's just varying degrees of cost.  Unfortunately.

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