How to choose the right type of offer to close it faster?

Let’s take a look at the types of offers.

Consider the opposite situation — we want to buy an asset that no one is selling on the site right now. We have two offer methods at our disposal: Part and Best bid (Manual). Which to choose?

  1. Best bid (Manual) offer is suitable if you want to buy an asset and do not know which discount / premium to use. You want to evaluate an offer from different bidders. You will receive several offers and can choose the best or refuse all. One buyer with the best bid closes 100% of the offer. Therefore, it is taken into account for large transactions that not everyone will be able to make a bid that covers 100% of your offer. If the volume is large, then it is better to sell in parts through the Part offer. The system will show the best bid by price, discount / premium.
  2. PART offer. You set in advance the price at which you want to buy, other users can agree with your price and BID for the smallest possible step that you have determined. Such a BID is closed automatically, as users agree to sell the asset on your terms, previously set in the offer. This type of order allows you to receive many small bids and quickly sell an asset in parts automatically.

It’s the same if we want to sell. Sell ​​100% of the asset with one offer through Manual and receive bids without a fixed discount / premium, or we can sell in parts through PART with a predetermined discount / premium.

What kind of discount / premium we talk about all the time?

This is an important parameter for the OTC market.

A discount is a discount for bidders that we set when creating an offer. That is, we are ready to sell our asset at a discount.

Premium is a surcharge, an increased price, i.e. we offer buyers an asset or intend to buy an asset at a higher price than the market price. In this situation, it is the seller’s market.

In this video, we show how to place bids on offers of different types: Best Bid or Part.

How to bid on OTC offers on Marsbase

How to use this tool correctly?

Sale discount

If we sell a low-liquid asset, then we want to sell it faster and can give a discount (discount). Ideally, if this discount is less than our loss in price impact when selling the same volume on the market on a regular exchange.
Those. if we sell this volume in a glass, then we will lose more than the discount that we will give. But for bidders, this discount will be more profitable than buying on CEX. This is a buyers’ market. Since sellers are forced to give a discount and focus on buyers.

Premium on sale

If the demand for an asset is very high, then we can sell it at a higher price than in the market. Because buying from the market will still be more expensive for the buyer than buying from us, even with an increased price. When demand exceeds supply, a sellers’ market develops.

Discount when buying (offer for the purchase of low-liquidity with a discount)

We want to buy a low-liquid asset, the demand for it is not high and we want to get a discount from sellers. We create a buy offer with a 5% discount.
Those. we ask for a 5% discount from sellers because we want to buy a large volume. The seller will make a discount, since having sold the same volume on CEX, he will simply lose more. This is a buyers’ market.

Premium on purchase

This also happens, for example, we need a rare asset for which there is an increased demand. In fact, we are competing with other buyers — who will give the best price. We can deliver an offer with a small premium (more than our competitors) so that the seller wants to sell to us. This is a sellers’ market.

So we figured out which type of offer to choose and how to use the discount / premium tool correctly.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
MARSBASE OTC

MARSBASE OTC

The first decentralized OTC desk. Make large crypto transactions while skipping order books and decentralized liquidity pools with smart contacts of Marsbase