Wednesday, February 14, 2018

More on the hedge funds in the sandbox

Now, we decided a hedge fund should sell trading protocols, license them out to pre-qualified.  The trading protocols take advantage of a current arbitrage, which will be fulfilled over some number of trades.  The hedge fund sells these protocols, a limited number, a finite set. enough to complete the arbitrage and exit.

So, they really do run a pit,  a single color pit selling valuable contracts of limited life.  Their intent is to price entry in the queue, keep the buyer queues small enough to optimally exercise  the arbitrage.

The point is, Republic Protocols is selling digital items of finite value in the sandbox, so queue management is critical in their profit chain. They belong to the pit category.  So, Republic Protocols is very interested in policing the pipelines, they know that their protocols are fairly priced and get time in the pipeline, with miners on the job.

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