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Trusted Price Discovery.
As crypto investors we should all want it, but at what cost?
How about you, the crypto investor, decide what the cost should be for trusted price discovery,
per transaction,
per different mutually agreed to terms, that is you and your counterpart in the swap mutually pick your parameters buffet if you like to settle the transaction and, to also
further differentiate your bid and ask positions from other traders, investors?
Enter Atomic Swaps and AtomicDEX, Komodo style, as a possible way to solve this unsolved crypto market problem. (aka naked shorting..)
TK -Observation let's not have the SEC decide how trusted price discovery in crypto works, shall we?
In this issue #017 of CRYPTO TKOs we take a look at #Komodo 's good work in the atomic swap realm and how we might extend their current atomic swap capability to finally put an arrow through the Heart of the Crypto Pump and Dump Market Problem, once and for all. (If you are a Vampiric Whale Investor engaged in AI/ML order router driven Pump and Dump plays, please do not read, it might just scare you too much... ;) )
Atomic Swaps with Staking Penalties for early position withdrawals (aka Slashing) -
The Quest for Trusted Price Discovery in Crypto....
Recipe? Add a crypto fee penalty clause for yanking your maker or taker position during the allotted time for your offer and voila, you get honest trusted price discovery. No more naked shorting. (or at least its vastly reduced). No more Pump and Dump. Trusted Price Discovery, finally.
This is quite different from the current use of 'slashing' penalties in blockchain which focus on (per BisonTrail.co) "The two key misbehaviors that incur slashing are downtime and double signing "
Sure, this TK proposed new dynamic duo of Atomic Swap+ Price Staking Penalties is designed to deliver true price discovery, such a combo clearly makes it infinitely more difficult for sophisticated crypto trader to play the markets "pump and dump" style supported with the use of AI/ML driven crypto Order Routers , which are currently now driving the current crypto pump and dump actions across many of the crypto sub-market segments, as you read this post. ;/
Too bad so sad for the AI guys if this new dynamic duo focused on trust price discovery ever takes off.
Such uptake will for sure see the cost of those AI order router driven crypto trading facilities go 'thru the roof'. ;)
Why does the cost of AI go up with Parameterized True Price Discovery?
Well, the "pick your staking penalty parameters" option give the maker or taker for each bid and ask price offered option, coupled with current atomic swap peer to peer transaction capabilities such as Komodo's AtomicDEX Wallet solution for crypto investors, not involving any Central Exchanges (except where they provide part of the shared liquidity pools of the attached DEX providing atomic swaps P2P) and their accompanying 200%+ higher fees, creates an inordinate number of possible trading outcomes as it applies to what the discovered price will become after settlement.
AI predicting such outcomes with multiple ML Machine Learning Modules analyzing historical data and live price feeds clearly chews up lots of compute cycles, connected memory and storage ( where the historical price data lives for a long time). Such a scenario for AI driven crypto trading via order routers rule, also means the same systems are not privy to all trading market data will be available to AI because the P2P part and related history, especially if that is handled on privacy blockchains like Monero and ARRR is simply not visible, making their price predications 'incomplete' and less trusted.
Enter the Dragon: The Komodo Atomic Swap Tech 101 Primer - #AtomicDEX Style
The team at Komodo have long been known for working on atomic swaps between different blockchains, the key to middleman removal and reduced fees for settling between dissimilar cryptos, regardless of the accounting formats (ie- BTC coin/token types use UTXO, ERC20 coin/token types used double entry accounting).
Other tokens and coins recognizing their AtomicDEX multi-token/coins wallet and Distributed Exchange excellence have been quick to join the movement to support atomic swaps which also implement a notion of shared liquidity pools to better facilitate the volume of transactions expected.
Atomic swap works today and here is how, explained by Komodo as AtomicDEX here
Please Spend a few moments of time on this link above if you are new to atomic swap concepts, before you read on
Putting a Stake through the heart of the Crypto Shark Naked Short Pump and Dump Problem. Together, across multiple crypto projects...
I have never met a Shark Vampire, however I am sure there are Vampiric Shark investors driving the pump and dump crypto show, right now, in their typical self-centred psychopathic manner ( I went to biz school with some of them, so I have first hand experience with such sharks). Older Trading Sharks (with lots of cash and treachery) have largely honed their skills in the fiat equity, commodity and bond markets. These same types are now running many of the crypto tables, as these please, daily, powered with formidable AI/ML driven Order Router infrastructures (usually one Order Router per important asset traded..).
AI powered Shark Trading is a type of insane trading shark greed in full view of any crypto investor paying attention, powered largely by speculation pure, the biggest form of high stakes gambling on the planet completely outside the realm of state gambling authority control and will likely stay.
What is needed in the world of crypt, imo, before the crypto markets get completely subsumed by this type of 'old school' trading shark culture is more new crypto investors, preferably pods of new killer Whale crypto investors, running their own distributed crypto trading, this time using atomic swaps equipped with the aforementioned true price discovery and parameterized spot pricing mechanisms, to create a new, fair, crypto hunting ground if you like, based on trusted price discovery protected with 'slashing' or staked store of value penalties, of any crypto market attractive type.
For sure Govt. Regimes don't like the Vampiric trading sharing as well cuz, the same govt 'executive branch' types' end up paying the big five accounting firms to scan the heck out of all the current public blockchains out there at great tax payer cost, to find out where the fiat shark and crypto killer whale money went , what the crypto gains were (per their own perspective), and then tax those crypto investors bog and small, accordingly, to pay for their own regime activities, provided such govts can get their own vampiric behaviour passed through the legislative branch and then get their own state or federal judicial branch to uphold their own bad behaviour.
So let's act no in concert as a one big crypto community before the SEC decides for us.
One thing is for sure though imo, crypto is more advanced now in 5 years than fiat trading has advanced in the previous 30 years, an acceleration of innovation due to the influx of fintech developers in the crypto space which dwarfs the banking & financial team institutional and somewhat glacial efforts, which really means overtime , a pod of killer whale crypto traders will overtake and create a better trading field for crypto, much better than fiat Johnny come lately stark traders and the fields from which the came.
Let's End the Crypto Pump N Dump Games of Old School Fiat Trading Sharks
Taking Aim at Trusted Price Discovery for Crypto Markets
Introducing 'VanHelsing' Price Staking
I call it #VPS for short. ;)
That is VPS simply means stake your bid or ask 'spot' price with a set of "pull out early" penalty parameters which in principle , requires tech like Komodo to extend their atomic swap capabilities and, also requires one to decide what crypto is used to pay the penalty if you, as the crypto investor do pull your bid or ask position early, for what ever reason.
Could the team at #Komodo implement VPS?
Sure, if there is enough interest in VPS.
Maybe, just maybe such VPS should be expressed in Komodo's own token partly, where part of the penalty is paid back to Komodo to help them with their development efforts and pay for the weirder settlement transaction handling.
The other larger part of the penalty payment amount and store of value type is then left up to the maker and taker to agree to before the position offer expiry time and date.
How VPS might be implemented in atomic swaps?:
1 - use a time 'sliding scale' of penalties, which get larger toward the end of the bid or ask open offer contract durations, with some fixed amount returned to Komodo if either position is pulled before the offer contract expiry time makes perfect sense. Pul out early and you pay less in penalties, pull out at the last minute and you lost most all of what is bid or asked.
2 - the 'accept' criteria for completing a trade or swap needs to facilitate the atomic swap on ether side, maker or taker, where both must 'more or less' align before the swap is realized between both parties, or if the engaged can't agree, the amounts returned to the maker & taker if they can't reach agreement.
TK tech tip- The latter 'no swap" outcome points out the atomic swap technical need to add timely messaging to the mobile DEX wallet or the trading systems posting the VPS positions, with accurate dNTP time stamps, as multiple bid or ask offers cloud be made which don't entirely align in VPS parameter terms, meaning you the investor or your system would be responsible for figuring that decision to accept/reject any messaged bid or ask position counteroffer, quickly, while the contract offer of both positions is still valid.
Lots of fun VPS might be for the developer of AI. VPS is potentially Computationally intense and much more to design, build and operate AI driven Order Routers . If you are the AI guy building the AI/ML driven Order Router good luck with VPS, you will need it.
On the other hand, if you are like many, the lone wolf crypto investor operating your own DEX crypto trading desk software like the AtomicDex wallet live, well you go with your risk strategy and your intuition and, just do it, either way, accept, reject, or counter offer, rinse and repeat.
All that is needed is for a few crypto developers who understand and ar working on atomic swap support for AtomicDEX to step up and differentiate their own project with their own flavour of VPS.
The VPS Challenge: Put a Trusted Price Discovery arrow thru the Heart of the Crypto Pump N Dump and Problem, asap.
Nonetheless, me thinks the VPS idea above has merit. Any takers? Komodo? Anybody?
Van Helsing would be proud... ;)
That's all for now
TK over and out..
*****
