The Whale, the Liquidity King and Wash Trade Expert -- a Deeper Anlysis of STEEMIT Internal Market Using Market Insight by Steemprices.com
Steemians!
It's @jasonmcz again form Firstblood.io, I am writing this post along with my co-worker @zackcoburn ! If you missed my last blog on the topic of our internal market and market making last time, here is a link to the post.
Read this post can certainly get you caught up on some of the topics I will be discussing today.
site: http://steemprices.com/market/
The whole thing about whales gaming the liquidity reward caught a lot of attention from the community last week but most people only know the stuff above the surface and today in this post, we will dig deeper into the following areas: algo wars, true liquidity, why is this happening and lastly introducing the new tool of ours.
The State of STEEMIT Internal Market
1. Monopoly: Appears to be lots of players but really just two (big ones) and all small players.
2. King of wash trade: @abit's 'A Clan' aced the liquidity game.
3. No real liquidity after gaming the ladder: Whales seem to be inactive after they ensure they have the top spot of liquidity ladder secured.
4. Algo Wars: Robots are getting more and more flexible and they learn from each other (good and bad).
5. Rise of @jl777: Jl777 have been trading with his sub account @taker and have been rising to the top of liquidity ladder.
The Great Wall of @abit's
A big shift in this dynamic (kind of) is how market makers change their strategies accordingly to the fork so they could ensure they will be getting the reward most of time or 95.45454545% of time to be exact, in the last 88 payouts according to the data we get from our scanner.
@abit is one of the early gamers in this liquidity market. He is nice guy. We talk sometimes on the slack and the #marketmaking channel. He typical use one of his a'clans account to set up a wall for protecting the underlying liquidity he's pinging on the book just for over 30 minutes. Then he will use his taker account @abit to eat all the liquidities on the book until all of his liquidity is taken out and his points are earned on the liquidity ladder.
[Wash Trade] Taker Account @abit --> Maker Account @alittle @aton @alod @adeal @abunch and etc..
He normally does this once every half hour but sometimes he does more because of the other players .
Breaking the wall & Our dynamic strategy
Thanks to my co-worker @zackcoburn devoting extra time after work to improve our little robot, we actually build something quite amazing.
A dynamic market making robot that self-adjust to whales order and liquidity pressure.
Like I mentioned in my last article, one of the 5 strategies our robot is able to deploy is detecting whales orders, however whales are adjusting their strategies as well, SO we must play flexibly and cover all scenarios.
One of our dynamic strategies this time is to detect Whale's Wall so we can create a dynamic spread in between the walls @abit set between bid and ask -- and pick profits off him. Some other participants figure the same thing out and they are doing the same as well which causing @abit, I assume, to adjust his orders every now and then so it doesn't get too costly for his to eat up the liquidity on the book.
Rise of @jl777
@jl777 has been quite heavily involved in this market making mayhem by protesting and making a market himself successfully (most recently). He's climbing the ladder fast by using a simple and elegant strategy.
Populating the 0.2 penny wide orderbook by 77.77 Steem (7.77 steem) at a time
note: shown as @taker -- that's his maker account
This strategy is so elegant that everyone from retail to whale has to go through his orders thus more steady liquidity points! He actually provides liquidity on different levels on the orderbook.
The Liquidity King of King of Wash Trade?
@abit has been known for making the market and gaming the liquidity among the community and less successful peers of his, but how much, to be exact, does he earn a day? by doing this?
Username Payouts
- nirvana 12
- alittle 11
- adeal 9
- abunch 9
- alot 9
- aload 8
- thebeatles 7
- aton 7
- zztop 6
- theguesswho 6
- thewho 4
- inbamn10 1
- anonbtc2 1
- wednesday 1
- tuesday 1
- tinfoilfedora 1
- xeldal 1
- inbamn11 1
Last 3.5 days (88 payouts total) he has secured 53 payouts
How much will that be?
53 * 1200 * Avg(Steem/SBD*) = $ 209,880 *assume the average price trailing 3 days is about $3.30/Steem
Release of Steemprices's Market Insight
Special thanks to @xeroc @svk31 (https://github.com/svk31/steem-rpc)
We want to use this chance to open all the data piping work we've done to ourself for our robot to the community by releasing this awesome tool to inspect the orderbook and liquidity distribution.
You will be able to view :
1. who's placing orders on the current orderbook
2. who has gotten the last liquidity reward in the past 3 days
3. liquidity reward distribution chart
[Steem Market Insight]
What's next?
@zackcoburn and myself @jasonmcz will be busy for a while because our project -- the upcoming eSports DAPP - Firstblood.io is releasing an alpha in the coming weeks and we are working extra hard to bring it out to the community.
But we will keep working on Steemprices.com and next version we make the following improvements:
- We are planning on adding more data insight to this site such as historical & implied volatility, prices from more data source, daily volume, avg. daily volume, weighted market cap and etc..
- Make it more MOBILE FRIENDLY, we want this web app to be THE app for our community to check prices at
- Maybe we can do more interesting stuff with it! Shoot me a message on the slack @JasonMcz
- @pinartemiz brought up more currency support! We will add other currency as well (it will be normalized using spot FX rate)
- @steemgrindr brought up about chart! We will see if we could aggregate multiple exchanges historical data into one chart in next version.
As always, thanks for reading!
Upvote will be much appreciated!
my puppy lulu when she was 12 weeks old!
