Today's price moves in crypto are a strong argument for industry wide circuit breakers. The crypto markets structurally broke today & leading exchanges need to work together to prevent a repeat.
@CiaraHuobi
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Lol no thx; volatility is wonderful for volume, and you can’t possibly stop every exchange from trading.
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You couldn’t stop the DEXs even if they wanted to
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DEXs are too small to matter today and for the foreseeable future
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Top exchanges actually performed well under the load today. Circuit breakers are an impossiblity without global legal immunity but the real issue is that traders would prefer markets without them.
Yeah in the end part of the issue is that people want to put on the trades. Another part is the lack of central clearing--it means each let of an arb in liquidation danger. And overall at least no one was down for the whole day.
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Kraken did well today. But if there were to be an industry wide movement for circuit breakers it would need Kraken to also agree. It would need to be an industry wide agreement or it wouldn't work
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We literally could not move money fast enough on chain today to close arbitrages. People got liquidated because local liquidity dried up on the venue they were on even though there was liquidity elsewhere
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Everyone always wants to bend the rules in their favor when their trades don't work out
The value of this whole thing is running as many alt histories of global as we can.
It’s interesting to run the experiment of markets without speed breaker and massive leverage
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