How is the liquidity fee calculated?
Liquidity is charged - in an amount determined by the volume and price of the potential transaction and the current market price of liquidity - as a result of an aggressive order or order taking price when it is traded. In situations such as auctions, where there is no maker-taker relationship between counterparties, the cost of liquidity is shared equally.
How can you make money on the consciousness of the market?
A participant must place a financial bid on the market of his choice (known as a market making bid). These funds are held online in the market’s base currency, with the size of the bid determining the minimum volume that the market maker will place on each side of the order book.
How will the rewards for creating a market be calculated?
Remuneration is calculated according to the total volume of trading in the market, as in a centralized exchange, with the percentage of remuneration that an individual market maker receives depending on:
- their market share (in relation to the total amount);
- their pricing activity (active and competitive prices receive more remuneration);
- the longevity of their commitment to the market.
What is the advantage of Vega from the usual markets?
Vega is designed to operate without centralized human intervention, and as such, operational control is determined by rules built into the code, allowing for permissionless tooling and unlimited horizontal scalability. Network governance in Vega is not intended to replace all other forms of governance in the public Vega ecosystem, but is designed specifically to provide network governance for the key functions needed to create and maintain high-quality, well-functioning markets in a decentralized environment.
What is Vega working on and what do you want to add or improve?
-Smart product language. The design of smart product language and related models and risk frameworks is under active research and will be the subject of a detailed paper in due course.
-Economics of Stake. Proof of Stake networks and their economics are the subject of interest and research not only at Vega, but in the blockchain community as a whole. We will be observing and taking an active part in determining how to run a secure Proof of Stake trading network.
-Dynamic liquidity pricing. We are actively working on a methodology to better quantify liquidity costs in realistic market scenarios to improve Vega’s liquidity pricing algorithm.
-Risk and Scenario Validation. To gain confidence in the quality and correctness of both the protocol design and our implementation of Vega, we will conduct and publish extensive testing and further research into the risks inherent in the platform. We will also engage third parties to further audit and test our code.
-Open Source. We plan to release the Vega reference implementation as an open source project and move development to the core in the medium to long term. At the time of writing, we have no set deadlines or further commitments.
-Consensus Protocol. We are currently using Tendermint as a consensus layer and evaluating several alternatives. This process will continue with the goal of improving the performance, security, and stability of Vega.