Author: Leo Wandersleb 2019-08-06 13:07:19
Published on: 2019-08-06T13:07:19+00:00
In a discussion on the bitcoin-dev mailing list, Chris Belcher argued against the idea that sybil attackers could take over the market for maker bots on decentralized exchanges. He used an example to show that such attackers would have a lower fee income than honest makers, due to the V^2 term which reduces the bond value of sybil attackers. However, another participant in the discussion pointed out that this argument ignores the possibility of collusion among makers, which could allow them to make more than 100% of the fees. The commenter argued that, in any case, bonds are just a cost of business and there will always be enough people willing to enter the market and drive down fees, leaving only the holders of the largest bonds with meaningful business. Sybil attackers would still have an advantage in putting up the necessary funds.
Updated on: 2023-06-13T20:27:28.655988+00:00