Skip to main content
MANIFOLD
test
1
Ṁ100Ṁ4k
resolved Apr 27
Resolved
N/A

Market context
Get
Ṁ1,000
to start trading!
Sort by:

what are we testing

sold Ṁ3 YES

@jacksonpolack how many times does the market have to swing from one end to the other for market creator to break even

some estimation according to the current fee:

I start with a market having 100 mana liquidity subsidy trading it all the way to 99%, I was charged 10 mana fee.

Now trading it from 99% to 50%, I was charged another 6 mana fee

Trading it again from 50% to 1%, another 6 mana fee

Trading it again from 1% to 50%, another 6 mana fee

so a total of 28 mana fee to swing across two extreme. The market will have to swing to the two extreme 4 times to have 100 fee. Given market creator receives half of the fee, the market will have to swing to the two extreme 8 times for market creator to get the 100 mana back.

TLDR: if users aren't placing big limit orders, market creator will never break even