I’m not a fan of this proposal.
1st of all, @cp0x , you’re (a) legend(s). Tackled important concerns.
Putting pros and cons:
Pros
- Despite my reluctance to admit it, avoiding delisting important, because delisting from a major venue cascades to fiat on-ramps, retail access, custodian support, perp/futures listings, index eligibility, collateral acceptance at other platforms…
- @cp0x measured ±2% book depth at approx $50–90k per side on major venues. Right now we can’t do big size orders in or out.
Cons:
- It effectively puts sell pressure on LDO because we’re only providing LDO and the MM will have to sell some to provide liquidity on both sides.
- It’s a 480k spend for pretty weak KPIs as it feels like a kind of best effort and we are admitting that exchanges might still delist.
It’s a tradeoff that’s hard to measure.
I understand we need to do what it takes to avoid LDO delisting off major exchanges. Like an unexpected house repair, it hurts to spend to fix that inside of the wall broken pipe, but if you don’t the house deteriorates fast.
Like in @polar 's quote up here, I would like to have more arguments to convince me that the house is truly in such state of disrepair.