Today, there was an interesting discussion about bots in the Rising Star Discord server, and some people were pissed off by the profits that trading bots are "taking" from regular, human users... Before everything, I want to be transparent and say that I do have 1 account where I run the "official" trading bot developed by the Hive-Engine team that anyone can buy here...
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Second clarification, running a bot has its pros and cons, and it has its costs and risks... Bots don't get free tokens and later on, they sell them for money... They BUY tokens, and they SELL tokens... Usually, they are set up to buy tokens for the LOWER price to sell them for a HIGHER price, but sometimes, that doesn't have to happen... Selling for lower can happen for many reasons, but let's not go into that this time... Let's say that the main purpose of bots is to find ARBITRAGE possibilities on the markets and use them to make profits...
Is that good, or is that bad? Well, it depends... If there were no bots, humans would have a chance to make those arbitrage trades and make the profits manually... As they do exist, they do that for their owners automatically...
The biggest advantage of bots is when they "act" as market makers... For example, if you want to buy a large amount of SWAP.HBD, you will not have enough liquidity to buy it in 1 order, without moving the price a lot... If you use a trading bot for that, you can set it up to buy tokens until a certain price and patiently wait for those orders to be filled... In this way, your bot is a MARKET MAKER, as it created ACTIVE BUY (or SELL) orders that are waiting to be filled (the similar way you do when you don't want to sell some token at the current price, but for a specific price... you create an order and wait)...
We have to agree that having a constant buy pressure on some token can be only a good thing, so bots can be useful for that purpose... But, it could be the same the other way around, when they can be set up to create a constant sell pressure...
Back to the topic and the title of this post... There is another type of bots that we can meet on Hive-Engine... They are "hunting" for arbitrage opportunities, but they act in a bit different way...
As we have 2 types of markets on Hive-Engine (regular order book market and liquidity pools (diesel pools)), they create arbitrage opportunities... Sometimes, the price of a certain token is cheaper in the pools than it is on the markets, and sometimes it's vice versa... With trading bots running around, there are only a few cases when you can spot those differences...
If the price is close, you can MAYBE do it, but you have to be FASTER than bots... We have that "third" type of bots that don't have ACTIVE buy or sell orders at all, but their only job is to monitor the markets and hijack (human) orders! Yes, you read it well...
For example, you want to sell your token for X price which is the LOWEST SELL order in the orderbook... Even if there is NO OTHER ORDER in front of you and someone decides to buy the token for YOUR price, there is a chance that a bot will "overrun" you and take that order (for a slightly cheaper price)... If there is an arbitrage opportunity, the bot will buy a token in the pool and sell it through the order book in less than 3 seconds... I call those bots market takers as they don't have active orders in the book... Are they useful or not? I'm not sure, but it kind of sucks when your order is "hijacked".
What do you think? What is your opinion about trading bots? Are they good or bad for the markets?
Let's see the WorkerBee Pool numbers for this week...
This week, we have mined 92 BEE tokens in total!!!...
This week we didn't have new delegators and we got some new delegations from old members, too! Thanks guys! Appreciate your support!
This POOL doesn't have fees and you get up to 20% MORE by delegating to it!
What about the bonus tokens?
It's turn to the SPS tokens to be given away as a bonus token today! Seeing that token chart going up, it's a pleasure to distribute them today as they can be beneficial for you guys if the price continues to go up! With all new additions to the game, and Splinterlands Land 1.75, there are big chances to see better days for the game, which means better rewards for players!
There will be distributed 270 SPS tokens to the delegators of the pool as a bonus reward today!
As always, in the end, let's give the exact numbers for this week... 92 BEE tokens and 270 SPS tokens will be distributed as a bonus... The APR (without the bonus) was 4.801%, and when we added the bonus it went up to 5.837%!
I have calculated the ROI approximately with medium prices for all tokens at the moment of creating this post... So, those numbers are valid if you bought WB and sold BEE tokens at the middle HiveEngine price...
Do you want to sponsor the PH-Pool with your tokens, receive a short SPONSORED segment in this post, and raise awareness about your front-end or dApp? Please let me know in the comment section, or contact me through Discord or Twitter and we will find the best solution for both parties...
If you want to join the WorkerBee PH-Pool, the only thing that you have to do is to STAKE tokens to YOUR account and DELEGATE your staked WORKERBEE tokens to THIS account (
)! Every week you will get your portion of mined BEE tokens and BONUS rewards!
.:. DO NOT STAKE TOKENS TO MY ACCOUNT!!! Just DELEGATE! .:.
All payments will be made after publishing this post...
If you have any questions, please leave them in the comment section!
You can find more about this pool in the initial post here @ph1102/workerbee-p-h-ool-let-s-help-each-other
Thank you for your time,
--ph--
None of this is financial advice!!!
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