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100 sats \ 2 replies \ @mega_dreamer OP 20h \ parent \ on: 📣 Community Feedback Requested: Predyx Fee Structure oracle
Thanks - I think you're right about lightning native and must be way lower than fiat.
Another reason that prompted me to go with such fees structure was that I started to take User Created Markets into considerations. With thinly traded markets - as we have now, it would be impossible get back the liquidity you inject in the market at the time of market creation. In an LMSR market - you must by rule have to inject some liquidity to create a market. If the fees are not enough, the market creator will loose the liquidity that was provided at the time of market creation. Thus less incentive to create a market, until and unless you're willing to let go of the liquidity - in seeking the information from the market. In other words you pay with liquidity to seek some future information.
I hope I was able explain my motivation with regards to user created markets.
We can definitely start with 20 basis points - and for the purpose of being transparent, we can publish the liquidity injected, fees collected and final profit/loss for the market creator. This will probably explain about the market dynamics and why adequate fees are required in LMSR.
I think by using lightning the better tech should win. Better tech should provide more value to both business owners and consumers. It shouldn’t be zero sum. If you can compete with fees (like Robinhood did with stock trading) you can attract more users to the platform.
Market making is a hard business and without a huge liquidity provider you can bankrupt yourself especially with the scammers gaming the system but slapping massive fees to stop bad behavior punishes honest actors.
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Yes - I agree, in the long run, our overhead will definitely be less as compared to fiat (no debit/credit card fees etc). Also the cost to send and receive is very low as compared to fiat.
We definitely don't want to do this: "slapping massive fees to stop bad behavior punishes honest actors". It was an error of judgement to add massive fees.
With that being said, we've set all the fees to 0% at this time until we reach a general consensus with the community. It will give us enough time to think it through.
And thank you for voicing your opinion - we want Predyx's business strategy to be community driven. Without the community, the business has no value especially in the Bitcoin ecosystem.
I also think its a good time to create more visibility on the market dynamics. We'll work on making all the pertinent fees and liquidity related information available on the market details page so that the community can see for itself and make their own judgements. Just like the example below (we'll add more details wrt fees collected)
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