Cooperative Price DIscovery

real-time and Decentralized

Independently Tradeable

no front running

Cooperative price discovery (assert / insure) versus competitive (bid / ask)

The Microtick project’s goal is to provide a globally agreed upon, real-time consensus price - without requiring direct financial coupling to any underlying asset. The project is built on decentralized blockchain technology and the game-theoretical foundation of Schelling points.

Cooperative price discovery uses short-term assert / insure premium quotes that work together to bring improved consensus price stability as market makers compete to offer the lowest premiums for buyers. It works well alongside traditional competitive price discovery such as order books or AMMs - as a liquidity engine due to arbitrage opportunities that come up during times of high market volatility.

Learn more in the Microtick tech walkthrough. Follow along with the PDF slides here.
Learn about Microtick market making here.

Order book price discovery on left
Microtick price discovery on right (trading 5-minute, 15-minute and 1-hour price assertions)
simulator source code available here

Speculate and hedge with short-term leverage

Cooperative price discovery results in a two-sided marketplace where traders can get the best real-time premiums for price insurance on a very short-term basis. Choose a trading timeframe that suits your needs: 5 minutes, 15 minutes, 1 hour, 4 hours, or 12 hours. Or, take the role of “Market Maker” and provide your own assertions about an asset’s price and volatility, and collect the premiums traders pay.

Status-quo price discovery encourages centralization

This Cosmos-based platform aims to address the inherent centralization in the way price discovery is usually conducted. As popularized by the book "Flash Boys," centralization stems from the fact that price information is more accurate when a passive observer is closer geographically - or temporally - to where trade matching occurs. This type of centralization can also contribute to order execution problems such as front running where profit can be made by acting as a middleman in the order flow pipeline without incurring any risk or adding any liquidity to the market.

Beyond the order book

Because Microtick’s consensus price can be hedged in either direction, it has the ability to decouple price discovery from order book trade execution and bring the benefits of a global, real-time reference price to decentralized, private trades on the underlying asset - wherever in the world they may occur. We believe this approach has better long-term benefits for on-chain trading than building a decentralized order book or building oracles to import data into smart contracts using trusted data sources.

Learn More Get Started

The on-chain consensus prices generated on the Microtick network will always be freely available for use by any external Cosmos / Tendermint Dapp or other blockchain application with access to IBC.

Microtick's blockchain node and CLI have passed a security audit by Certik.

ShapeShift was historically a key R&D sponsor and startup incubator for the Microtick project.

Alchemy Supercharged

Alchemy is Microtick's Ethereum API partner - allowing simple ERC-20 DAI bridge integration for the on-chain quote backing.

open for anyone to participate:

1. As a Market Maker

Your Incentive: As a market maker you can make money by providing accurate and real-time price assertions and keeping them updated.

Community Benefit: Help the global network achieve a more accurate consensus price by adding your token backing and unique information to the consensus estimates.

Action: Choose your asset, provide your best estimate for the current price and volatility and back it with token value. Maintain your quote with the latest information as price information changes.

2. As a Trader

Your Incentive: As a trader you can make money by identifying short-term trading or hedging opportunities and trading malicious, misplaced, or neglected data quotes off the market and collecting their token backing.

Community Benefit: Help the global network by removing stale market maker quotes and rapidly responding to inaccurate ones in order to lock in short-term profit.

Action: Monitor the network. Run a non-validator node. Build a trader bot and watch for stale or low priced quotes in order to profit from your market outlook as it plays out in real-time.

3. As a validator

Your Incentive: As a Cosmos validator you make money by collecting the commissions market makers and traders pay for quotes and trades.

Community Benefit:  Help the global network by contributing to Tendermint / Cosmos BFT consensus and providing Cosmos IBC data access to others in the Cosmos ecosystem.

Action: Run a secure validator on the Microtick zone. Profit from commissions as market makers and traders battle on price.

Learn more Get Started

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