How to boost trading volume?

Exchange
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#1

Volume is the ultimate means to attract more users and more users ultimately generate more volume. Therefore the importance of generating more volume can not be neglected.

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V = Volume per period
n = number of transactions per period
p = selling or buying price
c = number of coins

Out of the upper equation follows, that the more transactions and the greater the number of coins per transaction, the more Volume! To get more transactions, you conclusively need either more traders or more trading in the short-term markets, or preferably both. The more opportunities or incentives a trader has in short-term trading, the more he will trade in the short-term markets! These opportunities can be provided by exposure to more leverage. The more leverage, the greater the number of coins per transaction!

Conclusion:
Therefore, the ultimate way to boost trading volume is by introducing margin trading. One way to make possible margin trading is to let users earn interest or borrow assets against collateral, which is conclusive with the ongoing trends in several other DeFi projects.

Would be nice to know if the team is already considering margin trading??

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#2

As far as I remember, non-custodial leveraged (a.k.a margin) trading was deemed too complex by Nash’s research team. However options/futures trading is still on the table, though I have 0 idea if this is actually being worked on as we speak.

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#3

There is a bunch of unanswered questions here in the forum. I wonder if there is an official channel where to put all that questions to be answered!! :sweat_smile:

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#4

I think Nash should introduce unique trading products (e.g. options, futures) to attract volume. I don’t think the normal pair trading will generate the volume impact everyone wants to see, unless NEX is listed on Nash for trading. The team is underestimating the benefit of listing NEX on Nash. So Team, if there is a legal way to trade NEX on Nash, please make it happen sooner than later. There should be some legal channel for listing the ERC20 version of NEX since it cannot be staked, which means it does not generate dividend, making it not a security, in my trivial thinking. Nash link will bring good volume, but that won’t happen in the foreseeable future. Another important thing is to expand Nash cash to the US. The US remains the number 1 player in crypto. Last thing I want to say is that it’s really incredible that nash users can buy BTC, ETH, NEO directly with 0 fees. Great job Nash!.

3 Likes
#5

Savings I believe another area I believe nash can get some exposure… Millions locked in nash will probably help nash known to outside community … If it’s difficult, may be partner , not sure what team thinks about this.

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#6

@Oldsport Well, I think it doesn’t always make sense to build everything from the scratch, especially when there is already ready made building blocks outside. Nash for example could try to built up on AAVE protocol and make the AAVE liquidity pool accessible for nash users. Nash users could borrow against collateral and leverage their trades. Additionally the new AAVE 2.0 protocol could even provide credit lines to the nash exchange for providing margin trading. AAVE by the way is also considering of launching on Leyaer 2 in the near future, which would be great for reducing Gas fees on Ethereum. Well, I don’t know if AAVE would be open to cooperation with a DEX, but it would definitely open up a door to new customers, so I guess it could be a win-win for both.

3 Likes
#7

We use to have AMA sessions every quarter then each half of the year. The last session was H1 2020 and we didn’t get the H2 report. I asked about it but no answer. There is also a bunch of unanswered questions about Nash Link, Nash League… I really don’t understand this.

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#8

Hopefully this is a strategy that Nash implements, not just ignorance :flushed:

#9

The H1 AMA was announced on October 4th, 2020. The half-year point is July 1st, so I would expect a H2 AMA in Q1, but not necessarily in the first weeks of Q1. I don’t think their strategy changed: simply that they are all very busy. But I do understand that this would be quite confusing for new comers.

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#10

H2 Report is schedule for April / May 2021.

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#11

@canesin Besides from theory, here is a real world example, how offering “Margin Trading” can help. dY/dX (https://trade.dydx.exchange/) has launched only recently in May 2019, has only 3 trading pairs (ETH/USDC/DAI) but has already a trading volume as of today of $41,650,535! Just think about it…

1 Like