STEEM Witness @roadofrich / Blokfield.INC

Background

Since the suspension of SBD trading on Upbit, there has been a lack of accessible and efficient environments for trading SBD. On the STEEM internal market, insufficient liquidity has led to trading losses for some users. Similarly, on HTX Exchange, while there is trading activity, a significant portion is dominated by bot trading, and large order book gaps increase the risk of losses.

Furthermore, users in countries with limited access to HTX Exchange face difficulties in liquidating their STEEM and SBD rewards into cash. To address these issues, we propose building and operating a market-making (MM) bot to enhance the trading environment within the STEEM ecosystem.

Our team has over a year of experience operating MM bots on Upbit and the STEEM internal market, successfully handling over 250,000 SBD in trading volume. Leveraging this expertise, we aim to contribute to the growth and stability of the STEEM ecosystem.

Goals

Primary Goal

Enable STEEMIT users to trade SBD rewards on the STEEM internal market at fair prices, minimizing asset losses.

Secondary Goal

Integrate with centralized exchanges (CEX) where STEEM and SBD are listed to perform arbitrage trading.
Use arbitrage profits to burn STEEM and contribute to the ecosystem's sustainability.

Tertiary Goal

Develop a bot to swap STEEM and SBD into USDT or TRX, creating a system to minimize asset loss during swaps.

Expected Benefits

• Increased Liquidity in the STEEM Internal Market

Improved trading environment with stable liquidity for SBD and STEEM.

• Price Stabilization Across Exchanges

Arbitrage trading will reduce price discrepancies between exchanges.

• STEEM Value Appreciation

Profits from arbitrage trading will be used to burn STEEM, enhancing its value and benefiting the community.

• Enhanced Utility for STEEM and SBD

Establish an ecosystem where STEEM and SBD can easily be exchanged for other cryptocurrencies, such as USDT or TRX.

Proposal Details

• Operational Funding

100 SBD per day: Required for development and operational expenses.

• STEEM Power Allocation

50,000 SP: Necessary to maintain sufficient liquidity and build a robust order book on the STEEM internal market.

• Initial Liquidity Assets

SBD, STEEM, and USDT: Approximately $10,000 worth of assets to begin liquidity provision effectively.
Technical Implementation

Utilize the APIs of the STEEM internal market and HTX Exchange for real-time data collection and automated trading.
Develop a smart bot to optimize arbitrage trading and asset swaps.
Ensure transparency by regularly disclosing all transaction records and operational activities to the community.

Conclusion

This proposal focuses on enhancing the stability, liquidity, and user convenience within the STEEM and SBD ecosystems. Our goal is to maximize the benefits to the STEEM ecosystem by concentrating on service operation and bot development without requesting additional operating fees for the bot itself.

With over a year of experience in building and operating MM bots, we bring the expertise and commitment needed to establish a transparent and efficient liquidity provision system. We are dedicated to working collaboratively with the STEEM community to create a sustainable solution that supports the ecosystem's growth and prosperity.

We look forward to the support and engagement of the STEEM community.