Fund manager trades

​
Fund manager trades being routed through 3rd-party DEXs are subject to protocol-specific trading fees. However, it is conceivable that significant volumes of fund managers’ trades will have another fund manager as the counterparty. This presents a potential fee-saving opportunity for fund managers if the trade can take place on the SolStreet protocol (the potential lower bound for fees is zero when summing the maker and taker fees). This could be achieved by having fund managers' limit orders simultaneously sit on a SolStreet order book AND a Serum order book. This should also help attract market makers to the protocol.

In practice:
1.Fund managers are presented with an orderbook that seamlessly combines liquidity in the Serum and SolStreet order books.
2.When a fund manager places a market order, trades are executed across both order books in order to minimize cost of acquisition (post-fees).
3.The best fee structure on Serum is a 0.1% taker fee and a 0.05% maker rebate. SolStreet could offer a 0.08% taker fee and a 0.06% maker rebate. This would represent net savings on the trade of 0.03%, with the protocol earning the 0.02% difference.
4.Both the maker and taker benefit from execution on SolStreet owing to the improved fee structure. The protocol also benefits for providing the service.

Fund swaps

Next - Litepaper

PDF download

Last modified 4mo ago

Copy link