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RE: $100,000 per day ongoing drainage of liquidity rewards (more than $85K hack) <- I propose three solutions

in #trading8 years ago

OK, how about:
Liquidity points = (sqrt(bid volume * ask volume) * coinage) / duration

where duration is the average time for the bid and ask? That would prevent putting up a set of long term orders away from the market. Though I dont think this is really that big of an issue as it does tie up the funds, which is the goal of using the coinage.