Quote from: Bonez0r on March 18, 2014, 02:00:16 PM

Quote from: halcyon on March 17, 2014, 09:59:25 PM

Quote from: Bonez0r on March 17, 2014, 09:48:32 PM

Quote from: halcyon on March 17, 2014, 09:16:16 AM

Quote from: uberfractal on March 16, 2014, 11:54:15 PM

Regarding this new "maker/taker" model, aren't those who provide the liquidity (i.e. those whose orders end up on the books) supposed to get a portion of the fee paid by those who take from the book? This is the first time I've seen a "maker/taker" model described as both parties pay a fee with one just paying a lower fee. This would seem to benefit Bitfinex a lot more than it would benefit traders, and I think it's going to end up creating a price divergence on this platform from other exchanges.

A true maker/taker model (I think, and I'm no expert) should look like this:

Market makers receive 1/2 the fee paid by maker takers.
Market takers pay .3% fee (so Bitfinex receives .15%, and the market maker receives .15%).

This is how you "incentivize" being a market maker.

this!

Thought about something similar but your idea seems to be an even better approach.
That fee structure would be a really incentive for being a market maker.

What´s your opinion Rapha/Giancarlo

?

I'm not a trader, so i might be wrong, but doesn't the new fee structure already incentivize being a market maker? A market maker only pays half the fee (or less, if you trade a lot) compared to a market taker, that looks like a big incentive to me.

mediocre incentive -> pay less fees then a market taker

but now think about the situation where some part of the fees taken from the market takers doesn´t disappear in bitfinex pockets but instead are distributed among the market makers.

= very huge incentive Wink

Oh yes, i believe you, that would be a huge incentive for market makers. But for your proposal to happen, and Bitfinex to still earn the same amount of money, they'd probably have to increase the fee for market takers to 0.3% or even higher. And that creates another problem. Why on Earth would anyone want to be a market taker if you pay that high a fee? Your proposal for a high market maker incentive means low market taker incentive. Yet the market needs market takers or there are no trades at all. But as i said i'm not a trader so correct me if i'm wrong.

you might not be a trader but you have some brains.

Nice to know that, I'll keep you in mind in case I want to share a beer one of those days...

Giancarlo
Bitfinex Team