Saturday, January 30, 2021

Sandbox does stock market liquidity

 Big banks want liquidity sandbox is pure liquidity.

Auto pricing stocks was a sandbox invention five years ago. The idea is to use our standard, risk neutral S/L technology, Coinbase has one up and running. The brokers are replaced by provable trading bots, and clearing house replaced by risk bound pit boss approvable contracts. Of course, standard rules of fairly priced entry and exit.

If you want to bet future prices then borrow ex ante at your favorite S/L pit. I think Coinbase has one of those also.  This system is the optimum congestion manager, and that is no arbitrage cash, and you cannot get more liquid. 

If you want to bet time and price, then you are risky and will need an insurance company.

More later on this approach.


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