Passive price discovery promotes centralization in markets
It is a fact that the closer a passive observer is geographically or in time to the point where trade matching occurs, the more accurate the price information will be. This type of centralization can also contribute to order execution problems such as front running where profit can be made by acting as a middleman in the order flow pipeline without incurring any risk or adding any liquidity to the market.
Decoupling price discovery from trading is the best way
to decentralize markets
The Microtick project's goal is to provide a globally agreed upon, real-time consensus price - without requiring direct financial coupling to any underlying asset. The project is built on decentralized blockchain technology and the concept of Schelling points.
Microtick is designed to be more than just a blockchain oracle. Because the consensus price can be hedged linearly in either direction, the goal is to completely decouple price discovery from trade execution and bring the benefits of a global, real-time reference price to decentralized, private trades on the underlying asset, wherever in the world they may occur. We believe this approach has better long-term benefits than building a decentralized order book or importing data into smart contracts using trusted data sources.
The on-chain consensus prices generated on the Microtick network will always be freely available for use by any external Cosmos / Tendermint Dapp or other blockchain application with access to IBC.
Your Incentive: As a market maker you can make money by providing accurate and real-time price estimates and keeping them updated.
Community Benefit: Help the global network achieve a more accurate price estimate by adding your token backing and unique information to the consensus estimates.
Action: Choose your asset, provide your best estimate for the current price and volatility and back it with token value. Maintain your quote with the latest information as price information changes.
Your Incentive: As a trader you can make money by identifying short-term trading or hedging opportunities and trading malicious, misplaced, or neglected data quotes off the market and collecting their token backing.
Community Benefit: Help the global network by removing stale market maker quotes and rapidly responding to inaccurate ones in order to lock in short-term profit.
Action: Monitor the network. Run a non-validator node. Build a trader bot and watch for stale or low priced quotes in order to profit from your market outlook as it plays out in real-time.
Your Incentive: As a Cosmos validator you make money by collecting the commissions market makers and traders pay for quotes and trades.
Community Benefit: Help the global network by contributing to Tendermint / Cosmos BFT consensus and providing Cosmos IBC data access to others in the Cosmos ecosystem.
Action: Run a secure validator on the Microtick zone. Profit from commissions as market makers and traders battle on price.