Trading experience with Any 2 Any technology – Kaifat Kirsan
Any 2 Any — technology for the aggregation of liquidity and the possibility of exchanging any to any currency, as stated by the creators of the 50x crypto exchange.
At the beginning of 2018, I became an investor in the 50x exchange. At that time, the idea of trading between any currency directly seemed to me promising, because at that time I already had experience in arbitrage trading and I represented all the advantages of this approach. But I did not understand the nuances and the principle of how it works.
I started trading on the exchange in the begining 2019 after a design change and a “core update.” Then some “childhood diseases” were cured and I threw a small amount to get the first experience. The first thing that surprised me was relativity. You can trade in a pair of BTC / A2A, or A2A / BTC — this is the same thing. When you place an order, it is both there and there.
I bought A2A in a pair of DASH / A2A and noticed that I am trading in this pair alone. In the history of transactions there were only my orders. But how were they performed? Then I remembered the so-called “liquidity overflow” and decided to clarify this point in the official group in a telegram. As it turned out, the project’s CEO, he is the main developer Nikolai Price, often personally (!) answers questions from investors. It turned out Any 2 Any is not just a trade between any exchange currencies.
Have you ever participated in pumps? A group of individuals begins to actively buy currency (SYM), for example, in the BTC / SYM pair. They spam in the chat that SYM went to the native, luring people, and then they sell everything abruptly. In the win, only the pamp organizer and some lucky ones remain. But this is not about that. In this situation, a moment arises when the price of SYM in the ETH / SYM pair is much lower in terms of BTC. There may be many such pairs with a lower price; automated scripts can arbitrate various pairs within the exchange in search of profit. But there is always a chance to buy and not have time to sell.
Any 2 Any makes you think differently. Glasses do not hang in a vacuum from each other, it is firmly connected. The entire exchange is one big glass in which liquidity flows from one pair to another. A transaction in the BTC / USDT pair may lead to the closure of several BTC / LTC -> LTC / ETH orders at once. One event can generate a chain of successful transactions.
I had an order to buy 10,000 50X in a pair of 50X / A2A. At this point, someone decided to sell about 30,000 50X in the market in a pair of 50X / BTC. This led to the fact that my order was closed because the A2A that was in my order was selling to someone in the A2A / BTC pair, so several parties became satisfied with one transaction at once.
The easiest way to see for yourself how liquidity overflow works is to watch through a couple of stablecoins, for example USDT / TUSD. If you place an order in any pair to USDT, for example 50X / USDT, then we should take away the order with almost the same price as 50X / TUSD, depending on the liquidity that is in the USDT / TUSD pair.
The chains of orders that are executed can be quite long and involve a wide variety of pairs. Thus, I trade even in a pair where there is nobody else but you, your orders can still be executed.
The orderbook already shows the market taking into account all the overflows and is the only truth by which you can watch the market situation, because there are some nuances with the schedule and history of transactions.
The chart displays the situation throughout the market. Even if no deals occurred in a particular pair, you will still see candles. They show the price that was in other pairs in terms of the current taking into account overflows. That is the price at which you could probably make a deal in a certain period of time thanks to Any 2 Any. The chart also has a high-pass filter, so high candles, if any, are smoothed out.
The exchange uses external liquidity for many coins, while at the same time providing information on trading on external sites. Therefore, the trading history does not provide information on volumes exclusively within the exchange. There is a Market module for this.
Nick Price claims that in order to re-implement the Any2Any idea, it was necessary to solve the classical n — complete problem. It took him more than two years to develop, test, optimize and fix bugs. Bittrex wanted to implement a similar technology, but with all the money, it was not possible to find the right specialists. The current version displays the first degree of overflow. That is, if liquidity became available in a pair due to a recess, then it cannot be poured and displayed again. The level of computer performance is not yet sufficient to quickly solve such problems in real time, because complexity is growing (n) 2. Currently, 50x is the only exchange that has implemented this technology.
At the moment, there are not many traders on the exchange, but even with this level liquidity allows you to trade. With the increase in the number of trading traders, the liquidity that they will create will be multiplied by aggregation. This will lead to an increase in trading volume and the attraction of new traders. When the exchange starts to make a profit, they will be distributed among the holders of the 50X token of the same name.
You can read more about the exchange on the website.
Published at Sun, 15 Dec 2019 12:33:35 +0000
{flickr|100|campaign}