there are 100+ techniques on central limit order books to wash trade, all extremely easy to execute and mostly costing $0 (or being even profitable, as now open interest / collateral can earn yield on-chain)
a naive, imperfect solution to this problem would be to display exclusively:
- market resiliency: if the clob doesn't replenish after a real trade clears it out, the fill was fake
- taker-side execution slippage: if a $5k market order slips the price by 8% on a triple $ M volume market, then volume is fake
those are my 2c on this matter, have a good day
Part 1.5
Felt bad leaving you guys with nothing tonight
So here is the undeniable proof that Kalshi is faking their PERP volume
FYI in case the data was to vanish over night, I have downloaded it and it's encrypted on 3 diff clouds
jus in case u know
Anyhow, here is an example
On ETH the exact same $5500 trade size keeps appearing over and over again
By over and over again, I mean it literally made up 48%–58% of ALL ETH PERP volume on 4 separate days
Also rumor, by rumor I mean person who told me wants to stay anonymous so I can't share proof, is that Kalshi has volume deals so MMs are forced to fuck around and do things like this
Literally incentivized to cheat
What I don't understand is why they are so bad at it kek
pro tip: if you guys want to fake volume one day, don't use the same lot size to do it over and over again
sincerely,
beni