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0 sats \ 3 replies \ @ek 9h \ parent \ on: 📣 Community Feedback Requested: Predyx Fee Structure oracle
Oh, right, you should definitely charge users for network fees and not pay them out of your own pocket, else you're opening yourself up to fee siphoning attacks.
If that's the reason for the fees on selling, wouldn't charging them for network fees be the fix you're actually looking for? If you're still paying for network fees out of your own pocket, this doesn't actually fix fee siphoning.
Thanks for "fee siphoning attack" link - I'm hearing it for the first time. Will implement the network fees for LNAddress payouts.
Also another motivation for adding the fees are to incentivize the market creators. We have plans to allow user created markets in few weeks. As you may already know every market created in LMSR must be subsidized with liquidity. The between 33% - 66% of this liquidity gets lost as the market comes to conclusion based on how thinly the market is traded. And if the market moves only in one direction, then almost all of the liquidity is lost.
Wanted to be prepared for the user created markets - by adding fees and fine tuning it to optimal level so that the user is incentivized to create markets.
Next we also wanted to get ready to allow 3rd party to provide liquidity with an incentive to earn fees. There will be no motivation to provide any liquidity without the potential to earn some fees.
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It seems like the optimal fee structure will have a fixed component to cover the fixed transactions costs and an exit fee that’s proportional to the wager to mitigate attacks.
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Thanks for "fee siphoning attack" link - I'm hearing it for the first time. Will implement the network fees for LNAddress payouts.
Also created a post about it: #1008424
As you may already know every market created in LMSR must be subsidized with liquidity. The between 33% - 66% of this liquidity gets lost as the market comes to conclusion based on how thinly the market is traded. And if the market moves only in one direction, then almost all of the liquidity is lost.
Yes, I remember talking about this with @kr when I was still working on delphi.market!
Wanted to be prepared for the user created markets - by adding fees and fine tuning it to optimal level so that the user is incentivized to create markets.Next we also wanted to get ready to allow 3rd party to provide liquidity with an incentive to earn fees. There will be no motivation to provide any liquidity without the potential to earn some fees.
Ok, makes sense
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