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Mhizha_Man

How does xRapid provide liquidity?

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5 hours ago, Tinyaccount said:

@mDuo13 thanks.  Has anyone at Ripple looked at or modelled the price effects of XRapid volume on the sending and receiving exchanges?

I might be completely off, but what I imagine it could happen is something similar to BTC price (as BTC was essentially the entry point/trading pair) when there was new money poured into crypto from November onwards - so say you want to bridge $10M that would mean someone has to buy up XRP worth of $10M at some point even if they don't have to hold it, this might put some buying pressure and also have an impact on speculators - until we reach a point where the price needs to be to accommodate this new $10M that were invested.

Note that I also think xRapid initially when targeting inefficient corridors - most of the time it probably won't have an effect on USD price e.g. if you have a Japan <-> South Korea corridor - even if you manage to increase the price there, it's difficult/not possible to do an arbitrage as they have strict rules and you can't really get KRW out that easily. I'd imagine this could make Korean market outliers (even more so). But even if it doesn't have an impact on USD exchanges it would be nice to just monitor what happens there so that when a USD <-> XXX corridor is targeted we know what's coming. One other interesting point to note is that the price effect of xRapid will also depend if the money flow is symmetric (which I don't expect it to be), so if you send more money from the US to say, Mexico, this should put more buy pressure on the US exchange.

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I understand that this is a first architecture, but xrp are useless in this scenario. Since the whole payment relies on deposit and withdrawal to banks, so the good old swift is doing the settlement. And the time of payment is limited to that again, so using BTC would be exactly the same (evenbetter because there is more liquidity and less spread) than xrp, because if the payments takes 3 days and 4 seconds (with xrp) is not so better of 3 days and 1 hour (with btc). :(

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7 minutes ago, tulo said:

I understand that this is a first architecture, but xrp are useless in this scenario. Since the whole payment relies on deposit and withdrawal to banks, so the good old swift is doing the settlement. And the time of payment is limited to that again, so using BTC would be exactly the same (evenbetter because there is more liquidity and less spread) than xrp, because if the payments takes 3 days and 4 seconds (with xrp) is not so better of 3 days and 1 hour (with btc). :(

Why would you pay 10 USD in BTC fees (twice) when you can essentially do the same for a fraction of that cost?

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2 minutes ago, Lamberth said:

Why would you pay 10 USD in BTC fees (twice) when you can essentially do the same for a fraction of that cost?

 

12 minutes ago, tulo said:

because there is more liquidity and less spread

 

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I think this picture should look better now, back in September the price was around .20c and the volume was nowhere near the levels now (we hit $10B 4-5 days ago) so in that respect I'd imagine the numbers are looking more promising. There's one suggestion below this tweet that I like - it would be pretty cool to have some chart (probably on XRP charts) that can be updated from time to time to reflect the latest XRP price/liquidity etc

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10 hours ago, mDuo13 said:

They only need to hold a stockpile of their preferred sending (probably fiat¹) currency, for example USD, which they can convert to any number of receiving fiat currencies, for example MXN, on demand.

USDMXN FOREX markets do exist though and while going through XRP might have some benefits sometimes because cryptocurrency markets are more volatile and inefficient, I honestly thought that xRapid is something far more elaborate than a nice interface for something like https://github.com/timmolter/XChange. For now it seems to me to be just a way to do some arbitrage every now and then if crypto markets are more inefficient than FOREX. A nice benefit, but not a game changer imho.

Maybe xPool is going to be what I actually thought xRapid is doing, if you are interested in a more elaborate concept that actually uses XRP within RippleNet (if I understood it correctly) feel free to reach out.

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32 minutes ago, Lamberth said:

Why would you pay 10 USD in BTC fees (twice) when you can essentially do the same for a fraction of that cost?

What @Essq said. First you have to pay it once only, and now it is around 1$. Now imagine to send a payment of 10000$. If xrp has a spread of 2% including slippage you'll end up paying 200$ in fees. With btc at 0.6% spread you pay only 60$ fee ( which is again huge). I'm happier to pay 60+10 than 200 :).

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1 hour ago, tulo said:

If xrp has a spread of 2% including slippage you'll end up paying 200$ in fees. With btc at 0.6% spread you pay only 60$ fee ( which is again huge).

Liquidity should definitely be taken into consideration but I would have never thought XRP has a much bigger spread (never analysed spreads on crypto exchanges myself though).

Is this calculation based on a real exchange or some average data?

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4 minutes ago, mDuo13 said:

¹ and I don't mean "beta" in the sense that Gmail was beta while being used by millions for several years, I mean beta in the sense that we only started writing the source code in the past 6ish months and we're barely feature complete with something we think is minimally viable. So many bells and whistles are still in the backlog...

@mDuo13, really looking forward to your 1.0 release. I somehow suspect it will make a difference, same as Kafka 1.0 made a huge difference to all those using Kafka for years in its 0.x state.

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11 hours ago, zerpian said:

Check this:

 

I still don't understand this chart.

Does it mean that exchanging USD to EUR was 3.88% cheaper with XRP than with traditional markets but EUR to USD was 4.04% more expensive?

Edited by elias

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