Do we need more automated trading pools?

MarginX
1

hi folks, it has been a while since the launch of Maker liquidity pool - it is an automated maker trading pool that fill in the order book / market depth, it seems like a passive trading strategy, providing liquidity , regardless of the market condition

Do you think a profit seeking automated pool (opposite with market liquidity pool) has market demand?

what is your thought?

2

My wish would be if there were possibilities for us users to use a trading bot that can, for example, stop and lose and also automatically trade according to my or maybe with community specifications.
Best regards Sylvia

3

Are you referring to trading bots that utilize the depositor’s money to make trades and then return the profit, if any, to the depositor?

  • If yes, then personally yes, I think there will be market demand.

Similar to KuCoin’s & Binance’s trading bot, but instead of setting our own specifications or parameters, it will be the professional’s.

However, since it’s about transparency and avoiding black boxes, in my opinion, it would be best to also know ‘who’ will be operating those trading automations.

  • Like which proprietary trading company will be handling the trades?
  • Will their information and track record be public?

Suggestion/Idea:

Personally, I would love to see a Spot+Futures arbitrage pool/bot.

  • You buy spot - this acts as your long position
  • You short on MarginX - this acts as your short position

You are ‘sort of’ market-neutral.

It will be farming the funding rate which according to statistics, majority of the time, it is always positive which is profitable for market-neutral shorters. A safer yet decent yield.

I guess FXSwap can be used to trigger the long spot position while at the same time being short on MarginX.

Although, in order to be as neutral as possible, both long and short positions must have the same buying price, which can be difficult because FXSwap requires more liquidity to do so. Not only liquidity, but FXSwap will need an oracle for FX to be pegged to the global price to work properly too.

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4

I’m thinking of something like 【BOT】 🌟 C.A.T. Cryptocurrency Automatic Trader 🌟 (New Price List 04/2021) , for example, that it runs locally on my pc Raspberry and so on. I can set everything in the settings how it should act. I would also like something like that for MarginX.

5

Sounds exactly like my suggestion, except it’s not for a stablecoin but farming funding rates :point_up_2:

Spot-Futures Arbitrage

  • You buy spot - this acts as your long position
  • You short on MarginX - this acts as your short position
  • You farm funding rate with a pseudo DN position
  • Cons: Need deep liquidity on both FXSwap and MarginX for tighter spread

Automated funding rate pool?

It has a pretty decent APY while having a lesser (not zero even tho P-DN) directional risk although the margin needs to be rebalanced over time.

Spot-Futures Arbitrage :point_down:
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