JASCoder

Thanks for the intel on CMC, i'll hold off on burning up time there just yet, I'm just now signing up for a Bitso account to chk out their API, this hobby is becoming worse than video game addictions lol. I've always believed the "market cap" measure was worse than useless, it distorts market behavior with false signals, and very exploitable. But up to now, with crytpto the assets market, we've not ever seen it driven by a utility driven demand - which in a way, seems more akin to commodities like pork bellies and coffee. ODL is forging a demand for high volume quick turn-around trading... Is there anything comparable to this ? And yeah, CMC doesn't even accept XRP tips - as DAI says, very telling. heh.

Great suggestion, thanks for reminding me of that.

It seems apparent that the order book at the corridor's endpoint is a key component impacting the scalability of the ODL system. Consider that MGI is constrained from buying XRP at BitStamp until the order book at Bitso has bids at an accommodating price (factoring in current USD/MXN exchange rate and quantity). These state conditions govern when, and at what volume, buy/transfer/sell sequences should be executed. If we could view the dynamics of Bitso's order back juxtaposed with the XRP sell events over time it might help us visualize the progress of the deployment efforts. Bitso does appear to offer this ( https://bitso.com/developers#order-book ), I will pursue this next Assuming that works out, I just need to think of the best way to render their order book metrics along with the trade volume and prices I'm already charting ( https://wp.www-net.com/xrp2mxn-demo-test-page-01/ ). Suggestions, anyone ?

Intriguing addition, thanks Tiny. This ODL project seems to be a hybrid of conventional and innovative market activities. It's ridiculous how many expect this global pioneering and disruptive financial innovation could possibly be deployed instantly. smdh There will come the day when the whole interconnected web of these new networked processes are all governed by AI systems, managed and understood only by IT scientists ! Thanks again for your input. I will try to find some time to pursue monitoring the measurable latencies of Bitso's order book recovery events, that could be interesting. Or maybe that is just what Tenitoshi's "Liquidity Index" is effectively charting I wonder... Cheers.

Thank you for your helpful response mate (great handle btw - when i read i hear it as if spoken by actress Julia Louis-Dreyfus LOL). So if I was to illustrate this one component (fresh WTB XRP orders) of the ODL dynamics, I should depict the capital flow as an international FX wire transfer into Bitso's own bank account, conveyed via SWIFT, originating from arbitrage owner's (foreign) bank accounts ? Thanks again for your patient feedback.

The Bitstamp to Bitso (XRP->MXN) corridor seems to be a one-way value flow. Looking at the volume metrics last few days, we see large selling of XRP for MXN over a four hour period every day. The order book of bids to buy XRP gets consumed (ones assumes). The MXN spent to buy the XRP is then removed from the system (to the remittance recipients). There is apparently no balancing XRP to MXN exchange occurring at Bitso, so the in-bound to Bitso XRP transfers have to stop until the order stack has recovered from the blast of trades. What is the mechanism restoring balance to the order book ? Is it just arbitrage action alone doing that ? Even if it's just the arbitrage achieving the re-balancing, the MXN capital still must come from somewhere (if the surplus of XRP leaves Bitso, eventually some foreign capital must eventually be exchanged back into MXN, no ? It's certainly not being restored by the remittance recipients (one assumes). Thanks in-advance for your time !

Here is the last 90 days of Bitso's XRP to MXN trades. Note, that for the last few days, most of these trades have occurred around 13:00 to 17:00 UTC.

Thanks for your feedback @Julian_Williams Leonidas also suggested I look to adding to our live charts the incoming XRP metrics as well (what HMX is charting) - I'm planning to work on that next now that I've got the Bitso volume trackers done. If you have the time (and anyone else here), please review my "test-beta" of the new live charts page and lend us your feedback (the charts are updated every ten minutes at times: 1,11,21,31,41,51) : https://www.xrparcade.com/test (note - you can download a quality rendering via the bar-chart's upper-right "Download" link) My thinking, is to add a second bar of the in-bound XRP volume along side the bars of XRP sales, but it might not be the best way to juxtapose the two metrics - as they aren't directly correlated, being the ODL process is effectively asynchronous. There's still too much I don't fully understand yet I am most open to any suggestions you all might have. Thanks !

(re ramping up) THAT, my friend, is certainly the 36,101 XRP question !! As to clues from SWELL - It seems reasonable to conclude from the optimism and stated expectation for additional deployments to four more corridors, that all the stakeholders believe the liquidity bottleneck IS solvable, but a work in progress. To restate: (IMHO) The key blocking issue holding back a scale up, is the rebalancing requirements of the surplus XRP at a corridor's endpoint (eg. Bitso). How does a market demand to buy XRP for MXN stay robust and get replenished ? At some point all that XRP being purchased at Bitso needs to go somewhere, and eventually result in MXN reserves getting reset at Bitso. I've been seeking an answer to this crucial question for some time, with best answer I've gotten to date is the rebalancing could be handled by automated arbitrage, which my guess is they have been testing it, and it's not yet robust enough. Ideally there would be found use cases for sending MXN originating value to remote endpoints using XRP - What does Mexico import ? Anyone else know more on this ?

Thanks for the encouragement I can appreciate not all are intrigued by the underlying tech and challenges of effecting a global transformation of the present monetary handling systems. Some just wanna know whenmoon already. I perceive that many here are generally interested. Jargon to plain speak summation: Deploying ODL is a chicken-and-egg conundrum - here is an analogy : Imagine there was no cars and trucks, and of course no fuel stations. People want to build cars, but no one wanted to buy them because there was no fuel available. People want to refine fuel, and run gas stations, but there are no customers with cars. What do you do ? Who goes first ? In the US, we want to send XRP to Mexico, and sell it there for pesos. But if we try to trade too much XRP in Mexico too often, it would cause the local price to drop so low, as to be prohibitive. We need moar buyers with MXN to buy our XRP gaddamnit ! There is profit to be made buying XRP cheaper in Mexico and selling it somewhere else at a better price. This is where the solution lies... And what us data miners and chart watchers are desperately seeking. We can't expect all the companies involved to tell us what they are doing to make this work. But there are publicly exposed clues we can monitor and figure out what they're up to, and how close they are to getting their solutions ramped up and growing. That growth rate, and adoption rate by others, is what will lead to the inflection point at which increasing demand for using more and more XRP begins to impact its price. That moment, will be transformative. That moment will be the turning point of price driven not just by speculation. Our precious hoards of tokens will be lent out to "market makers" to us it to make profit, and pay us "rent" aka interest. I'm old enuf to remember "Savings Accounts" which paid 6-8% interest to use my hard earned money. This is found in a normal economy. That which crypto will return us to. Hopefully soon !

I think I recall that, albeit from a different description. They were indicating a multi-directional "value flow" of multiple use cases, all combining to help restore the value reserves at all participating hubs. One example was a three-way diagram, where the surplus of XRP at one hub was acquired and sent to a third hub, which in turn was used and sent to hub-1, thus restoring a general balance. I just reviewed the last 12 hours of Bitso's trades, and noticed something potentially telling... Last night "they" sold off four hours of roughly even tranches of 800k, the MXN valuations took an obvious hit, then the sells backed off to near zero again. This seems to indicate the 800k level of XRP sell orders into MXN is too impactful an amount - particularly when we compare this to a few days ago, where the sell orders where much smaller. It's really looking like they are doing live testing of the price resetting behavior of the (assumed) automated arbitrage trades which seek to reset Bitso's pricing. I just wish I had more time to dig into this, it's so fascinating And most happy to find a few others equally interested in this obscure topic !

We could say it's brilliant to go after the "low hanging fruit," while others might say obvious lol. Once you realize the impact reducing fees and latency to remittance service users, it's a no-brainer this alternative will quickly displace the old high-overhead methods. WU must be shitting bricks heh. SWIFT is next haha. Re ODL - the one component of the process that still mystifies me, is the means of re-balancing the fiat (in this case, the MXN). If it all was a closed system, at some point, fiat-1 reserves of value needs to replenish the waning reserves of fiat-2. This might be too abstract to follow what I'm trying to say, I need to find the time to write this up...

My best guess for your two questions: 1) Maybe some, yes. 2) Yes, I too recall someone from Ripple saying that. We need a good way to help visualize and explain how a healthy ODL corridor sub-network functions in an ideal self-sustaining fashion. I'm working on a diagram I'd like to post here soon for feedback, which I'm hoping will be helpful for those interested. At its most simplified level, a functioning system of ODL "value flow," has inputs of fiat-A at hub-1, buying XRP and moving it to hub-2 for conversion to fiat-B which then exits from the system. So you get upwards XRP price pressure at hub-1, and downwards at hub-2. This takes a period of time to re-balance the pricing at the two hubs (generally thru automated arbitration). So the deepness, or thinness of the two hubs' markets is this system's vulnerability, and thusly is why, for example, MGI's rollout at Bitso has been apparently growing at a controlled (metered) rate. If you think about it, just dumping random quantities of buy/sell orders into a thin market will not result in a healthy and optimized system, but if these buy/sell orders are released in a controlled, or metered manner, it would ideally never swamp the arbitrage rebalancing operations. This is what I think we're seeing in the raw volume chart I posted (note, this morning it went flatline until just now - see pic below).

( i'm getting dragged away, lol - not all share our passion sadly - i fail to fathom WHY !! ) In brief: I've a daemon on an EC2 AWS instance pulling CryptoCompare's public (free!) feed into a WordPress database, and I run a script to populate a pre-made plug-in (free!) chart. I'm hoping to automate and expose this as a free service live in a few days, I need to add in their credits and stuff, and coordinate with the potential public facing web host. But I'd love some beta testers if you're volunteering we do have a "dev/testing" page up now. Cheers.

You are a true community hero Leonidas ! Thank you for being our surrogate, and "ACE" reporter. Many of us saw the snippet of you in DAI's clip, you looked tireless and energized, I don't know how you do it mon.