Conversation

3) People constantly want higher ratelimits. But not all orders are the same. The core metric here: $ volume per order sent. In other words, how efficient are your orders?

SBF

@SBF_FTX

Apr 8, 2021

4) What do FTX's users look like? Well, here is $ traded / orders sent for the top 20 order senders on FTX.

SBF

@SBF_FTX

Apr 8, 2021

5) So, one note is that some takers have fewer orders per trade, which makes sense. But even when selecting for liquidity providers, there's a huge range. Some customers are 75x more efficient than others!

SBF

@SBF_FTX

Apr 8, 2021

6) What's happening? Well, this, basically:

Quote Tweet

SBF

@SBF_FTX

Mar 3, 2021

5) Anyway... So what about the other mistake? Well, let's say you want to provide liquidity. A common strategy is: Send a bid 0.20% below the best bid, and an offer 0.20% above the best offer.

Show this thread

SBF

@SBF_FTX

Apr 8, 2021

7) And, in case you're wondering who reaches out to us asking for higher ratelimits: it's not the people around $100.

SBF

@SBF_FTX

Apr 8, 2021

8) So anyway, we are working on increasing throughput and decreasing latency, which is long overdue. Also, check yo orders.

Replying to

and

What makes FTX better than any other exchange?

Replying to

and

I can't remember how deribit's was set up exactly. I know they introduced rate limits early in my design, I got pissed, but then realized I only needed bursts of api orders. Their rate limit would allow brief bursts with long cool down periods, which works for low freq trading

Replying to

and

Feeling targeted😅