State of the Layer: All Hands – Mar 28 2017

  • Craig
    1. Omni on Litecoin binaries status
      1. UI bug fixes worked on
      2. Release to private group this week?
    2. Answering questions about  multiple-blockchain support / BTC fork concerns
    3. Progress on Address tagging / Identity consortium
      1. Creating an omniwallet adapter for coreID
    4. Enhancements for integrators still being worked on
      1. Implement default “fee address” for exchange integrators
      2. Implement “send_many” style transaction for exchange integrators
    5. Electron wrapper for “local”(-ish) omniwallet
    6. Omniwallet DEx enhancements
      1. Protocol change to allow BTC->Token DEx?
      2. Interface updates for MetaDEx/OmniDEx
    7. Integrator communication for 0.0.12 release
    8. 0.2 Omni Core release status
  • Zathras
    1. Omni Explorer:
      1. Fixed XSS vulnerability detected by @Shannon & @Marv (reintroduced recently when data sanitation rules relaxed)
      2. Housekeeping sweep & actioned blockchain volume grow
    2. Omni Core:
      1. Continuing work refining the Omni Core Lite prototype (more feedback please!)
      2. Updated auditor to 0.0.12, fixed remaining bugs and currently running deep audit – ongoing (auditor needs performance optimization!)
  • Adam
    1. Omniwallet
      1. Handling support
      2. Added new wallet backup versioning in db
        1. Now handled by triggers so every change is backed up
      3. Looking into multisig/hardware wallets support
  • Patrick
    1. Tremendously productive week doing automation for BOND, completed application, in 2 weeks will hear from the *Central Bank* -of- Armenia
    2. Had a great time on FutureTech podcast
    3. www.equities.com joining the table in stock sponsorship, will help with marketing the stock transfer app, BITCF hit $0.28
    4. OMNI hit $9
    5. Ready to move on BTC->USDT features   
  • Sean
    1. Double-checked and accepted dexX7’s pull request for new Omni Core release.
    2. Mostly focused on consulting projects.
  • dexx
    1. Updated binary download links for 0.0.12 on omnilayer.org:
      https://github.com/OmniLayer/omnilayer.github.io/pull/16
    2. Sent out release announcements on dev and announce mailing lists
    3. Started porting address-index patch for 0.0.12
  • Marv
    1. Omniwallet
      1. Support
      2. Helped Adam do new wallet backup versioning

State of the Layer: All Hands – Mar 21 2017

State of the Layer: All Hands – Mar 28 2017

State of the Layer: All Hands – Mar 21 2017

  • Craig
    1. We just hit $140,000,000 worth of assets on the Omni Layer!
    2. Prepping Omni on Litecoin binaries for testing
      1. Collect bugs for a week, address bugs
      2. Release to small community for feedback
    3. Speak with press about multiple-blockchain support
    4. Progress on Address tagging / Identity consortium
    5. Implement default “fee address” for exchange integrators
    6. Implement “send_many” style transaction for exchange integrators
  • Zathras
    1. Omni Core:
      1. Did Gitian builds & signed for Omni Core 0.0.12 release (special thanks to @dexx7)
      2. Transferred the Omni Core Lite port to the Litecoin 0.13.2 release base
      3. Fixed a number of bugs with the Omni Lite port, did new 0.0.2 version
      4. Created binaries for 0.0.2 Omni Lite port for internal testing
    2. Omni Explorer:
      1. Fixed a minor bug related to metadata storage
    3. General:
      1. Supporting integration efforts – need to have a discussion about helping exchanges manage volume better
  • Adam
    1. Omniwallet
      1. Handling support
      2. Looking into multisig/hardware wallets support
  • Patrick
    1. Marketing support considerations for Sphere crowdsale
    2. Automation scripts for BOND input/output operations
    3. Stocks-on-blockchain sponsorship has tentative greenlight, now in closing phase, press release to follow through financial newswires that pick up on PRs from public companies (via BITCF)
    4. Submitted OmniArb code
  • dexx
    1. Tagged, build, and released Omni Core v0.0.12:
      https://github.com/OmniLayer/omnicore/releases/tag/v0.0.12
      https://bintray.com/omni/OmniBinaries/OmniCore/0.0.12
  • Judith
    • Ongoing communication with projects

State of the Layer: All Hands – Mar 14 2017

State of the Layer: All Hands – Mar 21 2017

State of the Layer: All Hands – Mar 14 2017

  • Craig
    1. Traveling
  • Zathras
    1. OmniExplorer:
      1. Relaxed data sanitization rules for engine writes to database slightly (names like BTC+,BTC++ etc now display correctly)
      2. Fixed a bug that caused an exception when trying to view statistics for a property with no historical transactions
      3. Fixed an issue that caused the engine to crash when pending transactions reported by omni_listpendingtransactions are not retrievable
      4. Added ‘Omni transactions total’ view to usage graphs
    2. Omni Core:
      1. Fixed issue where balance at RPC layer could be incorrect if a pending transaction was orphaned (https://github.com/OmniLayer/omnicore/pull/463)
      2. Continuing work on address tagging prototype
    3. General:
      1. Assisted with a couple of support issues
  • Adam
    1. Omniwallet
      1. Handling support
        1. Added new ‘fee estimation’ for 1 more utxo calculation when under fee’d
      2. Looking into multisig/hardware wallets support
  • Patrick
    1. Stock transfer sponsorship deal on deck
    2. OmniArb.js bug fixes
    3. Exciting developments with BOND, application will be ready in 1 week, hustling to automate operations for better scaling when the money rolls in
    4. Need to scope out wallet project with you all
  • Sean
    1. Consulting and taking some personal time off.
  • dexx
    1. Added release notes, and bumped Omni Core version to 0.0.12:
      https://github.com/OmniLayer/omnicore/pull/455
    2. Tagged Omni Core 0.0.12 release: https://github.com/OmniLayer/omnicore/releases/tag/v0.0.12
  • Judith
    1. On going communications with projects

State of the Layer: All Hands – Mar 07 2017

State of the Layer: All Hands – Mar 14 2017

Ordering Strategies for the DEx

It’s no secret that bitcoin miner fees have gotten more expensive, and that on days with large blockchain backlogs of unconfirmed transactions. Ways to insta-confirm DEx trades may be possible, but meanwhile, let’s look at different trading strategies using the DEx. Below fees are based on low mempool-size conditions, they may drop by half

  1. Whale Profit Tails – Someone who is investing in size in Omni Layer assets may have positions large enough that getting in and out is a tricky, and potentially very expensive proposition. Staggering orders over a range of prices can be a great way for a long-term inverstor or intermediate-term trade to optimize the average price received when exiting a position. A good way to figure what price increment to use between orders, would be to pick a range, say 110% higher to 130% higher, and lay 5-20 orders across even intervals in that range. One way to figure amounts is to consider equal dollar value proceeds at each increment, putting the largest amount of units up front to be bought first, reducing risk, while preserving total profit by selling slightly less at each higher price increment. Because there are no fees on the DEx for placing limit orders, this is the lowest-cost way to scale in and out of large positions. Use lower fees expecting confirmation in days or more, to spread more orders or save more on execution cost.

    Cost: 0.0001 BTC for 5 to 20 trades, ranging from 0.0005 BTC to 0.002 BTC

2. Market Maker Spreads – Look up an outside market with a centralized exchange, keep some trading capital on the open blockchain for DEx trades, and deposit some on a centralized exchange. Calculate prices where you could detect a  matching MetaDex trade, and then immediately take liquidity off of the orderbook on the centralized exchange. When prices move, cancel the trades and place new ones at newly calculated prices. When a match comes in, trade on the centralized exchange at the market. Having calculated match prices with a margin of profit after fees and slippage, earn a steady trading profit.

Cost: 0.0003 BTC x 2 + 0.0005 for the cancel, per cycle, 40 times a day,  use 0.5% or better profit-margin, needs a $5000 value position to trade at least twice a day in order to break even on miner fees. A saturated DEx would involve a number of such traders utilizing fee analysis and high-fee cancels, and matches hitting every block, with profit margins tightening to .1%.

3. Combination Spreads – Professional investors making markets across multiple exchanges and carrying inventory  can combine strategy 1 with strategy 2 to achieve the goal of price-range distribution/accumulation of large, illiquid positions in some assets, and save money for strategy 2, in that many potential matches could occur with cheaply placed orders that were transmitted many blocks earlier. Also, funds that work with 50-100k or more on such a strategy would accumulate a 30-day average volume on centralized exchanges that could entitle them to lower maker fees on that side of the books, enabling them to provide tighter spreads, making the 4th strategy more accessible to everyone.

    4. Liquidity Taking Arbitrage – As markets get deeper, there will be opportunities to buy potentially large blocks of an asset while simultaneously trading it off at better prices on a centralized exchange. These orders will likely become competitive, in that within the same block confirmation time, multiple traders will try and match the order. Increasing miner fees to 0.0007 or as much as 0.0012 makes sense here, once fees are active a 0.05% taker’s fee will also be deducted from the proceeds of the trade. Maybe the objective is to hold the resulting asset, taking advantage of a favorable price, or maybe one is aiming for accumulation by selling it on one market and buying it back more cheaply on another.

Cost: 0.0007 BTC + 0.05% of the trade proceeds

5. Triangular Arbitrage  – Because the DEx permits total free in what pairs trade against, creating exponential possibilities as the number of asset grows, one can combine strategy 2 with strategy 4 by looking at triangular arbitrage opportunities. If I can take liquidity to buy MAID with OMNI, then sell MAID for USDT, and end up with more USDT than I would have selling OMNI, then it’s a reasonable move to take liquidity on both markets. A trading system based on this could provide limit orders to hedge on centralized exchanges when they are matched, or take the opposite approach, scanning the blockchain for order chains that would enable a profit after 0.05% is deducted twice, and after 0.0014 BTC is paid in miner fees for fast confirmations. Therefore, the total triangular arbitrage value should be at least a 0.2% on a (based on current BTC prices) $1700 valued order, or larger amounts for arbitrages worth between 0.1% and 0.2%.

Cost: 0.1% + 0.0014 BTC

These 5 strategies cover the elemental basics of decentralized exchange trading, but if you have any other ideas, please share in the comments.

 

 

 

 

 

 

 

 

Ordering Strategies for the DEx

State of the Layer: All Hands – Mar 07 2017

  • Craig
    • Traveling
  • Zathras
    1. OmniExplorer
      1. Working on issues with pending transactions, recovered multiple engine crashes this week
      2. Working to identify failures in alerting from app layer monitoring
    2. Omni Core
      1. Prototyping address tagging feature
    3. General Support
      1. Surprisingly quiet week 🙂
  • Adam
    1. Omniwallet
      1. Handling support
        1. Patched utxo/ btc send page validation related bug
      2. Starting to look into multisig/hardware wallets support
  • Patrick
    1. Preparing financials for an investor to pump up BOND
    2. Packaging BOND into NPM format – asking for assistance
    3. Designed financial product to be released shortly after BOND: BTC+ – tracks BTC + yield in BTC
  • Sean
    1. Consulting, Android development
  • dexx
    1. Reviewed and merged: Show newest transactions for omni_gettradehistoryforaddress:
      https://github.com/OmniLayer/omnicore/pull/460
    2. Reviewed: Provide history for all addresses (not just those in the wallet):
      https://github.com/OmniLayer/omnicore/pull/459
    3. Up for review: Bump version to Omni Core 0.0.11.3-rel:
      https://github.com/OmniLayer/omnicore/pull/455
    4. Up for review: Bump version to Omni Core 0.2.0:
      https://github.com/OmniLayer/omnicore/pull/461
  • Marv
    1. Omniwallet
      1. User support
    2. STO – located original test spec spreadsheet
  • Judith
    1. On going communications with projects

State of the Layer: All Hands – Feb 28 2017

State of the Layer: All Hands – Mar 07 2017

State of the Layer: All Hands – Feb 28 2017

  • Craig
    1. Spoke at d10e Bucharest last week
      1. Great reception on digital objects and identity
      2. Presentation should be on d10e’s YouTube channel within a week
    2. Zathras’ demo on meta data tagging
      1. New repo for Core-ID: https://github.com/core-id/omnicore/pull/1
  • Zathras
    1. OmniExplorer
      1. Performed emergency upgrade to 0.2 after DEx bug bit again and caused OE’s node to hang – more troubleshooting on Windows needed
      2. Working on an issue where trades are duplicated when viewing metadex markets
      3. Fixed another outage caused by running out of CPU credits (heavy API use)
      4. Upgraded to a bigger instance (double amount of compute and memory) to support increasing workloads
    2. Omni Core
      1. Created PR for ‘Atomic Metadata’ feature (https://github.com/core-id/omnicore/pull/1)
      2. Created PR for ‘Walletless History’ capability to provide history for any address (https://github.com/OmniLayer/omnicore/pull/459)
      3. Fixed a bug that caused omni_gettradehistoryforaddress to return oldest instead of newest trades (https://github.com/OmniLayer/omnicore/pull/460)
      4. Working on a bug that causes Omni Core QT (0.2) to encounter lock contention causing very slow performance while syncing and hangs on shutdown
    3. General
      1. Few support issues, nothing out of the ordinary
  • Adam
    1. Omniwallet
      1. Handling support
        1. Patching utxo/ btc send page validation related bug
      2. Starting to look into multisig/hardware wallets support
  • Patrick
    1. OmniArb:
      1. Support for closing arbitrage on centralized exchange as soon as dex trade is detected in mempool
      2. Packaging as NPM so you can just npm install omniarb and then var arb = require(‘omniarb’).OmniArb, then arb.init(address , rpcpass, key, secret)
      3. Needs more testing over the next week, testers welcome, will share Github link when it’s up
      4. Conferred with Zathras to improve the getTradeHistory RPC
    2. BOND – legal process pending
  • Sean
    1. Minor updates to OmniJ and bitcoinj-addons
    2. Consulting, Android development
  • Marv
    1. Omniwallet
      1. User support

State of the Layer: All Hands – Feb 21 2017

State of the Layer: All Hands – Feb 28 2017

State of the Layer: All Hands – Feb -21 2017

  • Adam
    1. Omniwallet
      1. Handling support
      2. Starting to look into multisig/hardware wallets support
  • Patrick
    1. OmniArb Progress –  packaging into NPM/Github repo
    2. OmniArb Features – investigating way to detect 0-confirmation potential trade matches and lock in an arb quickly
    3. BOND to be listed as regulated fund in Armenia on NASDAQ OMX, working on Blockchain Yield Index methodology
    4. Preparing proposal to stock transfer agency for sponsorship/KYC address project
  • Sean
    1. Consulting, Android development
  • dexx
    1. Omni Core 0.0.11.3 can be released, after “Bump version to Omni Core 0.0.11.3-rel” is merged:
      https://github.com/OmniLayer/omnicore/pull/455
    2. Omni Core 0.2 (based on Bitcoin Core 0.13.2) can be released, after “Update release notes for Omni Core 0.2” is resolved:
      https://github.com/OmniLayer/omnicore/issues/444
  • Zathras
    1. Omni Core:
      1. Looking at requirements and options for address tagging
      2. Built prototype for atomic metadata
    2. Omni Core Lite:
      1. Fixed Linux Gitian builds, now working on Windows
      2. Added functionality for remaining transactions to send tab
    3. General:
      1. Usual support & enquiries
  • Marv
    1. Omniwallet
      1. User support
  • Judith
    1. On going communications with projects

State of the Layer: All Hands – Feb 14 2017

State of the Layer: All Hands – Feb -21 2017