My opinion about DEX and future of RADIX

The forum was discussing whether to take a fee for canceling of orders - there are no fee for canceling of orders on any stock exchange or broker around the world.
The question is, are the types of orders that any normal broker would give you, such as one cancel other, stop bay, stop sail, trailing stop and traditional ones who have every stock exchange - limit, stop and take profit - for these three together must be a single fee or at most double fee for limit and the for take profit, or for the limit and stop loss , as the third option simply does not exist or stop loss or take profit will be triggered so second fee must be charged after thad .
Will there be graphics and indicators such as TradingView to attract investors and traders to use the DEX platform - for what these speeds of network are being chased as they will not be used in DEX and people will trade on other exchanges because of high fee and missing many type of orders graphics and indicators what is the meaning.
XRD will not become a world currency for a single day or for a decade - it first starts trading, then the speculators come, then the smart money of risk investors and even those small investors - we do not talk about mass adoption .
DAX will be the face of RADIX - if it is ugly, there are very limited types of orders and high fees for them, as well as charges for canceling orders that will repel investors and traders even RADIX will be the fastest possible coin.
When Libra with 2 billions potential users start RADIX not have chance for mass adoption - if they take problems with speed they will simply bay IOTA or TEMPO patent.
In the end for me is more Important to make DEX like Reuters or Bloomberg terminal or Interactive Brokers platform rather than chasing ever higher and higher speeds what becomes an end in itself.

Helllo filchef, welcome back to the community and thanks for sharing your thoughts.

Now I am not part of the Developers team, but from what I know about DEXs there is no way to make completely free interactions (place order, cancel order, etc.).

If there is completely no cost to making a order (placing a order is a transaction in the network and as such will use up resources from node runners), then there is no protection against spammers.

So a botnet could create millions of transactions in the network for free by placing and canceling orders and would clog up the network or the shard on which the DEX runs.

In a traditional centralized exchange you can trust people to not misuse the exchange because you could lock the account if it takes part in an spam attack. On the DEX that’s not possible.

So every transaction has to come with some kind of cost. Either a monetary cost in form of a transaction fee or as Proof of Work. IOTA for example choose to use PoW to protect the network from attacks.

Say the transaction fee would be set to 0.01 USD for example, then you could place and cancel a lot of orders at a rather small price. On the other hand you won’t have the x% fee for the actual trade like most exchanges charge.
So only bot trading would potentially not be economical on a DEX. Normal users would still end up with paying less

If you take the fee for place/cancel orders it is not possible to use API bot for high frequency trading because your depot will finish shortly and many of institutional traders use bots like this - may be can be some kind of registration and procedure for ban this bots why operate in DEX to protect from spammers and hackers attack.Registration for bots can be taxable to compensate nodes why verify orders.
Also DEX have to be responsible to this rules and KYC so if some spammer make registration to DEX you know everything about him.

Rather difficult (i.e. impossible) for a true "D"EX to keep KYC data since there is no centralized entity maintaining it.

Also, with regards to HFT, the jury is still out on whether or not the pros outweigh the cons. Accordingly, it’s not a clear case of requiring the DEX to bend to the will of HFT players by allowing a zero cost to cancel an order.

Relevant:
https://sevenpillarsinstitute.org/case-studies/high-frequency-trading/

  1. Market Manipulation: Trillium Capital

HFT can give traders an unfair advantage if they engage in market manipulation.
HFT computers can influence the market for the trader’s own advantage.

Take the case of Trillium Capital.

Trillium Capital is an HFT firm in New York that engaged strictly in HFT trades. Trillium entered many trades that were considered non-bona fide because Trillium had no intention of following through on these orders. The placement of the orders was to deceive the market into thinking there was a large amount of activity happening in certain securities. These orders induced other traders to trade based on the mirage of demand or supply created by Trillium. Before these non-bona fide trades were entered, Trillium had limit positions, which executed as a result of ther traders creating buy or sell side demand which moved the prices in certain directions. Once the real trades were executed, Trillium immediately cancelled their non-bona fide trades and profited from their limit orders.

These types of trades are illegal and cause market movements or prompt market activity that would not have happened had these HFT traders not manipulated the market to their advantage. Thus, investors and regulators rightly worry about the opportunity for these types of illegal and unethical trading activity that HFT provides.

So KYC will be standard rule for any exchange and this is the future of regulation and you can’t escape from this - data for everybody can be collect in sharded database of Radix

If you know your HFT clients you can easy ban them for market manipulation if they exist.
Fee for place/cancel orders is not admissible for any normal exchange so it is your choice DEX to be used for trading like normal Exchange or just for buying XRD

You keep using terms that apply to a CEX (centralized exchange), but are non-existent with a true DEX.

You might want to read up more on how a real DEX functions.

There is no central entity that would exist to “collect in sharded database.”

There is no business/client relationship where you could “ban them for market manipulation” as everyone is a client and the business is the decentralized/no-one-owned network itself.

So when will be clear regulation this sanction will be more hard and DEX have to be answer for this regulation and firs is KYC and your vision of DEX must be change - there are only one regulation for all exchanges and DEX can’t survive if you don’t collect user data - you can collect this data in side chain or in main database but you must know your users and software can automatic ban bots who spam or manipulate network.

I’m going to assume that either:
A) English isn’t your first language or
B) You still don’t know what a DEX is or
C) You are just trolling the forum

If you look carefully at the article you posted that is (as I explained before) a “Centralized” exchange (CEX) and not a “Decentralized” exchange (DEX). You can go after and attack a CEX, but you can’t a true DEX.

I’m not sure how more clearly I can state that obvious fact.

It would be the same as trying to sanction bittorrent. You can send Cease-and-Desist letters to “individuals” that are running a node and are sharing illegal content, but you CAN’T shut down bittorrent entirely. (ie. Whack-a-mole problem).

Relevant:

You right I introduction my self in this tread - I am from Bulgaria - this is last my post in this tread - I don’t like trolling any more - I know what is DEX but without KYC/AML any DEX will be illegal in many jurisdiction and businesses and individuals can’t prove origin of the money - cryptocurrency from trading in DEX so future of DEX is DEX with regulation - any person on DEX like this can be with personal number and can pay government taxes and sleep peacefully.