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1/9
Feels like even though @RaydiumProtocol is back something is off? Seems $STEP orders are either only hitting the CLOB and not using the large pools in the AMM or the AMM isn't aggressive enough on orderbook?
The $STEP price dumps rapidly on the thin CLOB book but
Feels like even though @RaydiumProtocol is back something is off? Seems $STEP orders are either only hitting the CLOB and not using the large pools in the AMM or the AMM isn't aggressive enough on orderbook?
The $STEP price dumps rapidly on the thin CLOB book but
2/9
The AMM has $150M in liquidity.
That is similar to $UNI on Uniswap, which would take $2.5M in sales to have a -2% slippage.
And the swap estimator on Raydium estimates if you were to want to bring the price down from $6.95 to $5.70, it'd take 2.1M $STEP (almost 1/5th)
The AMM has $150M in liquidity.
That is similar to $UNI on Uniswap, which would take $2.5M in sales to have a -2% slippage.
And the swap estimator on Raydium estimates if you were to want to bring the price down from $6.95 to $5.70, it'd take 2.1M $STEP (almost 1/5th)
3/9
So what would it have taken to drop the pool from $10 -> $7
Roughly $20M worth of liquidity being sold.
But, that volume doesn't seem to have happened anywhere.
Raydium reports $36M in total sales volume over the past 24 hours, and it was nearly that high before the drop.
So what would it have taken to drop the pool from $10 -> $7
Roughly $20M worth of liquidity being sold.
But, that volume doesn't seem to have happened anywhere.
Raydium reports $36M in total sales volume over the past 24 hours, and it was nearly that high before the drop.
4/9
The Serum Dex is only showing about $2M in total volume.
So what gives?
The Serum Dex is only showing about $2M in total volume.
So what gives?
5/9
Raydium was down due to a UI error preventing users from claiming, so there was pent up sales demand in the token that dumped.
But, it seems to me there was a disconnect between the CLOB and Raydium's AMM.
Raydium was down due to a UI error preventing users from claiming, so there was pent up sales demand in the token that dumped.
But, it seems to me there was a disconnect between the CLOB and Raydium's AMM.
6/9
This allowed the markets to dramatically move on low liquidity. My own buy orders shifted the market more than 10x what it should have if things were properly balancing.
This allowed the markets to dramatically move on low liquidity. My own buy orders shifted the market more than 10x what it should have if things were properly balancing.
7/9
So either:
A) Something on the backend of Raydium had an issue.
B) Raydium's protocol needs more aggressive liquidity hitting the CLOB from AMM
C) Data reporting to Coingecko failed
So either:
A) Something on the backend of Raydium had an issue.
B) Raydium's protocol needs more aggressive liquidity hitting the CLOB from AMM
C) Data reporting to Coingecko failed
8/9
Either way, I think it spells good things for an aggressive rebound for $STEP (a project which disclaimer, I'm heavily in) and I think today was the first big test for both these projects in how to handle issues.
Either way, I think it spells good things for an aggressive rebound for $STEP (a project which disclaimer, I'm heavily in) and I think today was the first big test for both these projects in how to handle issues.
9/9
I'm excited for Raydium, but $150M in liquidity shouldn't allow for an aggressive drop with such little volume on the sell side.
It will be interesting to dig into any aftermath report they release.
I'm excited for Raydium, but $150M in liquidity shouldn't allow for an aggressive drop with such little volume on the sell side.
It will be interesting to dig into any aftermath report they release.
PS - This also may be something that just needs refinement on a new innovation. It's not an attack against the idea of an AMM blended with the CLOB.
I'm buying more of both of them on the dip as I support them long term.
I'm buying more of both of them on the dip as I support them long term.
