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xRapid uses crypto exchanges to route payments in real time

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Just now, Xi195 said:

@Graine That one! I get what you're saying now. Thx.

I could speculate on which gateways represent what currencies, but I won't. It's not worth it, honestly

An entertaining thought, if anything. 

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17 minutes ago, Graine said:

I could speculate on which gateways represent what currencies, but I won't. It's not worth it, honestly

I'm tempted to make the same table for ETH/BTC, just for comparison sake. 

*I see now that BTC IS on the table above.

Edited by Xi195

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3 hours ago, zenkert said:

Have not followed any links.
But I say the above stated about SEB is false.

SEB is indeed interested in XRP,  Ripple and their Payment solution.
As one possible future solution, regarding blockchain technology.
Trust me.
I have it from the Horses mouth.

Skandinaviska Enskilda Banken - English for "Horses Mouth" :)

 

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1 hour ago, Mars said:

This used to be a good place to learn stuff seems too many  d- heads in crypto now.

You could probably correlate their arrival here round about the same time as Poloniex shut down the Trollbox.

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12 hours ago, Graine said:

"Today we announce that we ran [..] a payment through XRP and xRapid - the product that we have - that uses liquidity on bitstamp and bitso. 
And when we ran the pilot initially, we were getting much better rates going in MXN, because bitcoin was rallying". 

From 20:45 on https://www.credit-suisse.com/pwp/ws/videobroadcast/?pid=9ceVakBGCElMdKCKL5I4T6_prgxnKHap

Would explain the picture, making rounds on twitter. 

No details as to what are the underlying mechanics of this. Who needs details, right? ;) 

Leaving this down, in case they will be answered some day:

  1. Did they have MMs holding xrp/fiat on exchanges to enter/exit trades?
  2. Did they send XRP between exchanges to process the payment (might explain high xrp payment volume). If yes, how did they manage to force exchanges to credit deposit/withdrawals in prompt matter. 
  3. How long (in seconds) did it take to settle this payment. 
  4. Does this mean that Escrow Create/Cancel is no longer the only way ILP interacts with RCL


And finally, why on Earth this was not mentioned during a dedicated panel on Swell? 

Well, at least we know for sure they do not get their liquidity from this orderbook

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Actually, from an XRP point of view xRapid might be very interesting. XRP is what is driving the liquidity in xRapid, it says so literally on https://ripple.com/solutions/source-liquidity/

Although still shady, I think we can use the https://ripple.com/files/ripple_solutions_guide.pdf (solution overview of xCurrent) to help understand where xRapid stands. the FX-Rates mentioned in the excel/tweet from Warren Paul might very well come from the component "Fx ticker" as in the picture below. The description of "Fx ticker" is as follows:

Quote

FX Ticker is the component of xCurrent that facilitates the exchange between ledgers by enabling liquidity providers to post FX rates. This component provides the exchange rate between any pair of ledgers that it is configured with. Additionally, it keeps track of the account, currency and authentication credentials for each configured ILP Ledger. During the transaction, it coordinates transfers on ILP Ledgers for settlement, ensures the validity of an FX quote and transfers the payment amount to the beneficiary bank’s ILP Ledger.

So, recapping, what xRapid provides, is a way to provide liquidity via XRP. And it probably also offers this liquidity via the below mentioned FX ticker

Knipsel.JPG

Edited by jn_r

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4 hours ago, jn_r said:

enabling liquidity providers to post FX rates.

I understood that as "liquidity providers (in this case - crypto exchanges) broadcast the price tickers via api" and ripple's program aggregates them. But the problem is, how can they ensure that the payment happens at the rate broadcasted. Unlike ILP, you can't exactly 'allocate' liquidity on a public exchange engine... unless some changes to that engine are made. This is something Master Katz alluded to in the past. But Ripple isn't exactly forthcoming with details.  

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11 minutes ago, Graine said:

I understood that as "liquidity providers (in this case - crypto exchanges) broadcast the price tickers via api" and ripple's program aggregates them. But the problem is, how can they ensure that the payment happens at the rate broadcasted. Unlike ILP, you can't exactly 'allocate' liquidity on a public exchange engine... unless some changes to that engine are made. This is something Master Katz alluded to in the past. But Ripple isn't exactly forthcoming with details.  

I think in that case the internal crypto-exchange database is considered as a ledger. That ledger then makes use of ILP. So, not an ILP between crypto x and crypto y, but ILP between crypto-exchange x and crypto-exchange y.

But can't know for sure, merely guessing on what imo is most probable. I guess we have to wait for Ripple to come up with the real details.

edit: hmm, I think you mean something else.. :JC_thinking: the quoting of the price is something to be done beforehand. When the quotes are known, then you can do the ILP transaction. So if a quote is given, then that amount for that price should be taken temporary of the order book, something like that? Complicated.. It's a good question

Edited by jn_r

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@jn_r I am trying to understand how a payment happens.
So a bank in Japan wants to send some JPY to Mexico.

  1. How does JPY from bank ledger enter exchange's ledger? Do they have an intermediary with both accounts in bank & some funds on exchange, or - if the exchange has banking relations with the bank - it is done programmatically? 
  2. JPY/XRP order is about to be executed. How can you ensure it will be executed at the price quoted? What if the slippage occurs or the matching engine glitches? 
  3. Now that we have XRP on japanese exchange, do we send it to bitso? Or do we have another MM that has XRP on both? How much time does it take? Do they enforce priority processing for such XRP deposit? What if the fee escalates significantly from the moment the quoted price is accepted? 
  4. Who executes the order to sell xrp for mxn? 
  5. How much time does it take to move mxn from the exchange to recipient bank's client?

 Questions, questions with no answers in sight. 

But the biggest takeaway of all this should be the fact, that there's no demand for XRP in this scenario, or it is sated not from the market. 

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I think it would work like this:

  1. you would have a JPY bank, that is connected to the RippleNet via xCurrent.
  2. you would have a JPY/XRP exchange (the exchange does not need to be RCL/IOU based)
  3. The JPY/XRP exchange is allowed by the JPY bank to provide quotes for JPY bank. (the exchange is connected to RippleNet via xRapid)
  4. you would have a MXN bank, connected via xCurrent
  5. you would have a XRP/MXN exchange, connected via xRapid
  6. XRM/MXN exchange is allowed to provide quotes for MXN bank.
  7. JPY/XRP exchange finds out via FXTicker from JPY bank that it may deliver a quote
  8. Via some magic it checks for possible ILP paths through XRP and finds one path via XRP/MXN exchange
  9. JPY/XRP makes necessary preparations and delivers quote.
  10. JPY bank accepts the quote, makes it final via messenger.
  11. Payment is settled with ILP, via the JPY/XRP exchange - XRPLedger - XRP/MXN exchange to MXN bank

 

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