From the outset, CryptoBridge has sought to foster a symbiotic relationship between itself, the traders who use it and cryptocurrency projects. Young projects (many of which count CryptoBridge as their debut marketplace) often lack the liquidity of more established assets, and their development and success depends on developing it. To assist with increasing liquidity, we developed a market maker program to incentivize trading and liquidity, as CryptoBridge itself benefits from this increase as well.
Traders, projects and CryptoBridge all play a mutually beneficial role.
Liquidity only increases when limit orders are placed on the order books. Alternately, market orders reduce liquidity as they are settled immediately. The market maker program is designed to encourage traders to place both buy and sell orders in a market. By doing so, all market participants are provided with additional value in the way of information about supply and demand, reduction of slippage and by minimizing the spread. Adding liquidity to a market increases the overall existing and potential value for its participants. Anyone who does so becomes a market maker, and CryptoBridge is eager to reward those who add this value.
How does it work?
Each limit order filled will be reimbursed the 0.20% trading fee as well as 0.05% from the taker fee (The other 0.15% currently goes to BCO stakers). The reimbursements are collected and paid out proportional to your trades at the beginning of the month.
For example: You place a limit order on CryptoBridge’s order book to sell 1 BTC. Once filled, you are reimbursed your 0.20% trading fee and also paid 0.0005 BTC (0.05%).
It’s quite simple: If you place limit orders, you earn 25% of the taker’s fee — you’re getting paid to trade!
Please note that the market maker program only applies to trading pairs on the CryptoBridge gateway and do not apply to the BTS markets. Only applies markets such as BRIDGE .BCO_ BRIDGE.BTC are relevant (regardless of the platform you are trading from). If you are unsure about whether a particular market is relevant to the market maker incentive, check the pair on cryptofresh, and you will see the BRIDGE prefix related to each asset.
As CryptoBridge continues to scale and grow throughout 2018, we have faced many challenges and successfully fought for our survival (you can read about our triumph here). The market maker program continued to accrue funds, but the payouts were paused in July to allow the team to focus on ensuring the security of user funds and integrity of critical operations.
Since that time, our growth has been exceptional, and now we must recognize the role that the BitShares nodes have had in supporting our project. We have implemented and grown the number of our own nodes to facilitate our increasing traffic, but now feel we are obligated to pay homage to the platform upon which CryptoBridge was built.
Our way of acknowledging this is to open our nodes to the wider BitShares network. Doing so will incur a greater level of expense, however, and we’ve decided to reconfigure the way in which the market maker funds are allocated and utilized to help us realize an increased level of reciprocation with the greater BitShares ecosystem.
Beginning December 1, 2018 market maker rewards became limited to BridgeCoin stakers. The portion of traders who do not maintain the minimum staking balance of 10 BCO and also accrue a threshold of 0.003 BTC in monthly payout rewards will have 100% their trading fees allocated to the maintenance and development of the CryptoBridge platform.
We feel that this is an acceptable way to continue rewarding our loyal BCO stakers with 75% of the revenue but also provide CryptoBridge with the flexibility to share our network resources with the greater BitShares ecosystem.
CryptoBridge is committed to playing an integral part in facilitating the growth of individual traders and early-stage cryptocurrency projects and has resumed its incentivizing market maker program. Following a period of rapid growth, new circumstance have led to the decision to refactor the way in which the market maker incentive operates. Beginning September 1, 2018 a minimum of 10 BCO staked and monthly threshold of 0.003 BTC paid in trading fees is required to take part. All other revenue generated by trading will be devoted to offsetting the cost of additional node operation as these will soon be open to the greater BitShares network.
The market maker program is not the only incentive model available on CryptoBridge. It is meant to provide liquidity and is different from BCO (BridgeCoin) staking, which you can learn more about here.
We’re excited for you to join us! Start trading today by visiting the official CryptoBridge GitHub and downloading the latest release of our secure desktop application. You’re welcome to consult with our support staff at any time in our official Discord channel if you have questions. We’re always available to you, because trading never stops.
How to Begin
CryptoBridge utilizes and supports the use of the BitShares worker proposal for DEXBot, an open-source market-making application (trading bot). We share the DEXBot team’s goal of taking active steps to improve liquidity.