Nostr Web Client

LOW FEES

I have lowered coordinator fees to 0.1% at Over the Moon. This is a 50% reduction from the previous fee of 0.2%, which is what all other coordinators still charge at this moment in time.

The maker-taker split remains the same as before, at 12.5% to the maker, 87.5% to the taker. At 0.1% total fee, this comes out to 0.0125% for makers and 0.0875% for takers.

These are probably the lowest fees you will find anywhere on the p2p market. Consider that this is 1/20 of Peach's 2% fees, for example.

Why am I making the change? The first 7 months of running the coordinator has been a good learning experience and I am beyond grateful for the help and support I have received. However the trading volume has not meaningfully increased despite a bull market and the lifting of initial order size restrictions. Current volume is not sufficient for this venture to be sustainable and my resources are better allocated elsewhere at this rate. For the average user, there likely has been little to differentiate between the coordinators in the federation. Hopefully the lower fees will incentivise more trades and a more even distribution of orders hosted amongst the federation.

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Discussion

Ivy Lockman 7mo ago

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Eluc 7mo ago

Nice move. These are the lowest fee ever see on any exchange I guess, centralized ones are about 2 to 10 times more as well. And with Lightning there is also very low network fees unlike Peach.

I will pick you for my future trades, even if the difference in absolute fees will stay marginal (a couple of cents less for most of my transactions).

Over the Moon 7mo ago

Thank you!! Every little bit counts

872b7cf9... 7mo ago

Nice to be the fees shaken up!

To be honest, I feel like the big brain move would have been to keep the current fees and double the donations.

Absolute fees are already very low, and this way you would at least attract good value users without making a race to the bottom.

One question: is Robosats Coordinator business being profitable for you?

Over the Moon 7mo ago

I guess my brain is rather smol then 😅 but that is an option I will explore if volume does not improve

No, for me it is not profitable if accounting for hardware and opportunity costs on liquidity

872b7cf9... 7mo ago

Well, if it was unprofitable from the start and you slash the fees so aggressively now you must 4x your order volume or else you will stay unprofitable.

I see that other coordinators are active on simplex and telegram groups, engaging with the community. I guess that brings value for example.

You have a business, you need to figure out how to bring value to users.... even more importantly you need to figure out how to communicate that value to users so you missing from the groups does not help that I guess.

I see you have a respectable node with well thought out fees etc... That brings value to the table.

Lowering already super low fees signals "I am low value" and risks to only attract low value users.

Then in the future when we will see dozens of coordinator, it would hurt the platform to see all of them race to the bottom.

These are just my 2 sats, do not take it personally 😉 .... I hope to give you some constructive critique.

What I would like to see is bigger coordinators raising their fees to leave space for newer ones.

Over the Moon 7mo ago

Thank you for your critique! I think you bring up some interesting points for sure. I will try to give you my reasoning behind my thoughts.

I would relish the opportunity to 4x my volume. Before lowering fees it was one or two orders of magnitude behind the well established coordinators, so still a long way from racing to the bottom imo.

I think having the lowest fees anywhere in p2p is only good for the platform and attracts liquidity and users from other less efficient platforms. It creates a positive feedback loop of lower prices and more abundant liquidity. This is only possible because the federation model of RoboSats creates the correct incentives for efficiency.

As for public support, I am active on the NIP-29 chat, for whatever reason very few robots use it. I do not offer support on Telegram and SimpleX simply does not sync my messages nor do I receive them in the general chat. However users have always been able to contact me privately if they encounter issues.

I think it's pretty basic economics to lower prices when there's too much supply of a similar good or service. I did so first because I had near zero opportunity costs, as my volume was already negligible. It does not imply lower quality of service. Other coordinators can also adjust their fee policy as they please, either to lower it or to raise it. Last time I checked we are not a communist price-fixing cartel haha

872b7cf9... 7mo ago

Thanks for your answer. These are all valid point!

I guess not only private support, but also public one.... Now for instance I can get a sense of who you are, and I can feel some trust. Before I knew nothing about you.

I am going to try your coordinator for a couple of my next trades!

Over the Moon 7mo ago

I appreciate it!

. 7mo ago

🔥

Skipper 7mo ago

It's also because you don't support swaps like the others

Satoshihead 7mo ago

Welcome competition, finally! 👏🏻

I never understood how new coordinators pretended to compete with the established ones without better fees.