I think "is it arbitrage" is a major part of the issue. Bancor is claiming to be a market maker offering a spread (basically, taking a cut for insuring liquidi

I think "is it arbitrage" is a major part of the issue. Bancor is claiming to be a market maker offering a spread (basically, taking a cut for insuring liquidity). Sirer is suggesting that without being able to react to real-world changes, Bancor will burn reserves to offer up something like arbitrage whenever the market changes. Well, arbitrage or "just giving away money", depending on how you count it. I'm hardly qualified to judge the question, but it's disturbing that Bancor basically dodged the main complaint in this response.