I'd like to take some time to explain how Equilibre.io benefits to the Stellar DEX.
This is a known fact that one can make profit while improving the market balance. In fact, this is what arbitrage & contrarian trading is about.
When rebalancing portfolios, Equilibre.io uses limit orders. Meaning: it adds new offers into the orderbooks, rather than matching existing ones (aka market order).
The first reason to do that is that most SDEX pairs have high spreads (ratio between first selling offer price & first buying offer price). Spread is like a fee for taking liquidity out of the market by matching offers. So: if you have a 1% spread on a pair it means you'll pay a 1% fee for using a market order instead of a limit order.
That's why I found more profitable to creates new offers, even while some of them don't get taken. A side-effect of this is, Equilibre.io users are constantly bringing liquidity to the market, reducing spread & solidifying pairs they trust into.
The amounts involved are humble, but because volumes are low it can go a long way in improving SDEX environment. In quiet market conditions, you can expect about 1% of a portfolio total value to be available as liquidity in the market. In rally/crash conditions - when we need liquidity the most - it can go over 5%.
By playing the role of liquidity providers, Equilibre.io users receives the spread fee from liquidity consumers. This can be thought of as a reward for improving the market. In current conditions, my estimation is that a portfolio can make over 3%/year this way.
Another fact to account for is that, when using multiple anchors for a same asset, Equilibre.io will trade the most interesting orderbook. Here again, user makes a net profit for bringing balance to the market. It's hard to come with an estimation of how much, though.
To summarize, Equilibre.io implements what I call peer-arbitrage. This could be the foundation of a distributed economy in which we rely on a peer-to-peer solution to stabilize market, rather than on those "trusted" third parties who occasionally involve in market manipulation & keep all the profit for themselves.
