State of the Layer: All Hands – Apr 18 2017

  • Craig
    1. Cannot join call
    2. Lots of Tether inquiries
      1. Reviewed bank statements, they’re fully solvent
      2. Team is working on alternate bank routing
      3. Big banks are bullies.
    3. Litecoin private release this week
      1. Everyone provide final feedback to Zathras ASAP
    4. Integrators
      1. Made inquires about 0.0.12 update status
      2. Have not heard back from the big integrators yet :-/
  • Zathras
    1. Omni Explorer
      1. Ported OmniExplorer to Litecoin prototype
      2. lite.omniexplorer.info now available to help with testing
    2. Omni Core Lite
      1. Fixed several discovered bugs in prototype
      2. More branding works
      3. Generated binaries via Gitian for Omni Core Lite 0.0.4
  • Adam
    1. Omniwallet
      1. Handling support
      2. Websocket micro refactor to include better caching and bug fix
      3. Looking into multisig/hardware wallets support
      4. Looking at manage issuance/management
  • Sean
    1. Jenkins CI server (ci.omni.foundation) storage increased — thanks Adam.
    2. Investigating issues with OmniJ (Omniwallet REST client) and post-Cloudflare Omniwallet
      1. Working theory is that REST client needs to implement SNI.
  • Patrick
    1. Finishing up blockchain yield index ahead of imminent launch
    2. We need to establish an S&P like compendium of projects that have transparent information and solid tech, team ect. So people know what the good assets and avoid the scamolas.
    3. We need to apply at the app level on Omniwallet ect. Some filters so that tokens with names like ETH, BTC, ect. Are not dominating the menu of markets when people first click into the Dex interface.

 

State of the Layer: All Hands – Apr 11 2017

State of the Layer: All Hands – Apr 18 2017

State of the Layer: All Hands – Apr 11 2017

  1. Craig
    1. Scheduling conflict this week
  2. Zathras
    1. Omni Explorer:
      1. Fixed a bug with pagination when looking up a property
      2. Added some low level auditing capabilities to OmniEngine
    2. Omni Core:
      1. Fixed (finally!) a rare DExv1 bug that could cause lock contention when a new block is connected while omni_getactivedexsells RPC is processing accept offers (https://github.com/OmniLayer/omnicore/pull/465)
      2. Added seed blocks for blocks 450,000 – 460,000 (https://github.com/OmniLayer/omnicore/pull/467)
      3. Added checkpoint for block 460,000 (https://github.com/OmniLayer/omnicore/pull/466)
      4. Reviewed @dexx7s relax data type checks PR
    3. Omni Core Lite:
      1. Further branding changes (using new logo etc)
      2. Number of bugfixes on Send page
      3. Cleaned up overview page & fixed several bugs
  3. Adam
    1. Omniwallet
      1. Handling support
      2. Looking into multisig/hardware wallets support
      3. Looking at manage issuance/management
  4. Sean
    1. CI server running out of space
      1. Blockchain keeps on growing!
      2. Hoping to add space (with Adam) later this week.
  5. dexx
    1. Reviewed and merged: Add seed blocks for 450,000 to 460,000
      https://github.com/OmniLayer/omnicore/pull/467
    2. Reviewed and merged: Add consensus hash for block 460,000
      https://github.com/OmniLayer/omnicore/pull/466
    3. Reviewed and merged: Fix possible lock contention in omni_getactivedexsells
      https://github.com/OmniLayer/omnicore/pull/465
    4. Submitted and merged: Relax datatype checks of omni_createrawtx_change
      https://github.com/OmniLayer/omnicore/pull/464
    5. Small improvements of atomic swap scripts:
      https://github.com/dexX7/py-omniswaps/
  6. Patrick
    1. Blockchain Yield Index and charting
    2. BOND pending authorization on the coming Tuesday, preliminarily the regulatory support is in place for the approval
    3. Petitioning for near activation of the STO feature

State of the Layer: All Hands – Apr 04 2017

State of the Layer: All Hands – Apr 11 2017

State of the Layer: All Hands – Apr 04 2017

  • Craig
    1. Omni on Litecoin binary release this week?
      1. UI bug fixes, Zathras updating Omni Lite logo
      2. Release to private groups first
    2. Extension Block compatibility assessment
      1. Duplicate soft fork methodology for cross-chain tokens?
    3. OmniWallet needed updates
      1. Managed issuance / grant / revoke for new issuers
      2. Lots of requests coming in
      3. Electron wrapper for “local”(-ish) omniwallet?
    4. Omniwallet DEx enhancements
      1. Protocol change to allow BTC->Token DEx?
      2. Interface updates for MetaDEx/OmniDEx
    5. Progress on Address tagging / Identity consortium
      1. Creating an omniwallet adapter for coreID
    6. Enhancements for integrators still being worked on
      1. Implement default “fee address” & Implement “send_many” style transaction
    7. Integrator communication for 0.0.12 release
    8. 0.2 Omni Core release status
    9. Prepare proposal for interested consulting firms on benefits of investment in Omni development
  • Zathras
    1. Omni Explorer:
      1. Added SSL (no data is sent to OE by users, but SSL helps privacy)
      2. Fixed a notification bug that caused incorrect warnings
      3. Fixed an outage when OC node (0.2-dev) became unresponsive, not found root cause yet
    2. Omni Core Lite:
      1. Major overhaul of the UI send tab, lots of improvements and lots of bugfixes
      2. Rebranded splash & about dialogs
      3. Generated Gitian builds of 0.0.3 Omni Core Lite for more internal testing
    3. General:
      1. Started taking a look at DexX’s atomic swaps stuff
  • Adam
    1. Omniwallet
      1. Handling support
      2. Looking into multisig/hardware wallets support
      3. Looking at managed issuance/management
  • Sean
    1. Back from travel and available this week.
  • dexx
    1. Ported address-index modifications for Omni Core 0.0.12:
      https://github.com/dexX7/bitcoin/tree/addrindex-omnicore-0.0.12
    2. Small fix to avoid incompatibility with Python bitcoinrpc package:
      https://github.com/OmniLayer/omnicore/pull/464
    3. New exploration of guarded atomic swaps of Omni tokens
  • Marv
    1. Omniwallet
      1. Monitoring support
    2. Omniexplorer
      1. Submitting improvement feedback

State of the Layer: All Hands – Mar 28 2017

State of the Layer: All Hands – Apr 04 2017

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