Conversation
|
The latest updates on your projects. Learn more about Vercel for Git ↗︎
|
|
CLA Assistant Lite bot All contributors have signed the CLA ✍️ ✅ |
mfw78
left a comment
mfw78
left a comment
There was a problem hiding this comment.
Quotes should be ", not “ / ”
mfw78
left a comment
mfw78
left a comment
There was a problem hiding this comment.
Please have all quotes as "
| --- | ||
|
|
||
| # Batch auctions | ||
| Continuous limit order book designs leave room for arbitrage, incentivizing high-frequency trading and resulting in sub-optimal pricing for traders. Batch auctions are a new type of trading mechanism which addresses these flaws by grouping orders into discrete time intervals. This approach eliminates the arbitrage opportunities inherent in continuous limit order book designs and delivers more beneficial outcomes for traders. |
There was a problem hiding this comment.
Not sure if this is quite true. Perhaps @acanidio-econ / @harisang could weigh in if this is structurally correct?
There was a problem hiding this comment.
it could be more precise if we said
Continuous limit order book designs *allow arbitrageurs to extract profits from liquidity providers*, incentivizing [...] This approach eliminates the arbitrage *profits* inherent [...]
But, honestly, I would be fine with dropping line 6 altogether (have we ever discussed continuous limit book markets before?) and start immediately with our implementation of batch auctions.
There was a problem hiding this comment.
Took 3 months.... Makes sense to me, but let's wait for @acanidio-econ to confirm.
There was a problem hiding this comment.
My recommendation is to drop the paragraph: the title is "batch auction," and we start by discussing continuous limit order book -- which we never discuss again because they have nothing to do with CoWswap.
There was a problem hiding this comment.
Ok, following @acanidio-econ 's recommendation, I pushed a change and will merge the updated PR.
| --- | ||
|
|
||
| # Batch auctions | ||
| Continuous limit order book designs leave room for arbitrage, incentivizing high-frequency trading and resulting in sub-optimal pricing for traders. Batch auctions are a new type of trading mechanism which addresses these flaws by grouping orders into discrete time intervals. This approach eliminates the arbitrage opportunities inherent in continuous limit order book designs and delivers more beneficial outcomes for traders. |
There was a problem hiding this comment.
it could be more precise if we said
Continuous limit order book designs *allow arbitrageurs to extract profits from liquidity providers*, incentivizing [...] This approach eliminates the arbitrage *profits* inherent [...]
But, honestly, I would be fine with dropping line 6 altogether (have we ever discussed continuous limit book markets before?) and start immediately with our implementation of batch auctions.
| --- | ||
|
|
||
| # Batch auctions | ||
| Continuous limit order book designs leave room for arbitrage, incentivizing high-frequency trading and resulting in sub-optimal pricing for traders. Batch auctions are a new type of trading mechanism which addresses these flaws by grouping orders into discrete time intervals. This approach eliminates the arbitrage opportunities inherent in continuous limit order book designs and delivers more beneficial outcomes for traders. |
There was a problem hiding this comment.
My recommendation is to drop the paragraph: the title is "batch auction," and we start by discussing continuous limit order book -- which we never discuss again because they have nothing to do with CoWswap.
Co-authored-by: mfw78 <53399572+mfw78@users.noreply.github.com>
harisang
force-pushed
the
gogonimago-patch-4
branch
from
fdd4513 to
a2a06b8
Compare
4 participants
Description
Changes