Along with retail investors, the participants above are betting big on a way to execute large trades without spooking the market. At least, that's the argument advanced by Taiyang Zhang, CEO of Republic Protocol, who sees the project as a trustless alternative system for crypto trading.They are trying to design a bot that can trade adiabatically, without causing the pit boss to requant. But they assume no pits, just over the counter trades in an aggregate dark pool. There are still some mixed metaphors going on, market layering is not firm.
The protocol based system allows traders to search for matching partners without revealing the total trade. If they have fair traded pits, the trading bots observe the collective bit error, the state of the bit error is all the shared information needed. So they are trying to duplicate the fair traded auto-pit with a protocol based information sharing. OK, let's try it.
But they are still better off with a firm definition of an escrow router which simplifies their marketing and technology. They get the idea of bearer assets,and consider the use of stablecoin in that regard as a stand in for the dollar.
And at the bottom of all this, they gotta get the finger print on the contract. The bots they are designing as power of attorney, hard to claw back the trade once done.
But they get these issues, one can tell they thought out as best as possible in an industry just now standing up. If they pursue trading bots of all category, they will find business as the layering firms. Their information sharing idea leaves a lot of room for bot cooperative trades, and maybe that can be worked into the escrow router, but suspect this company may end up selling pits.
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