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we live in a financial world dominated by automated trading (60-80% of trading on nasdaq is bot volume, and also v dominant on solana)
retail volume does not really change with spread when the spread is already low (i.e. no behavioral difference between 1 and 0.1 bp spread), but with sufficient liquidity we expect bot volume to be inversely proportional to spread as more arbitrage opportunities between venues appear when spreads are low and price jumps present themselves.
the only way to deliver low spreads to retail is by either filtering out bots, or being so good at quoting that you are able to survive the onslaught of bots when you offer low spreads
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