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KarmaCoverage

Liquidity in RippleNet Video

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Too much information in just one Video. Publishing stuff on the Internet, needs to be divided in small Chunks of information.
And furthermore - focus - is also needed. What is the Message? Everything?

Manuscript can be good to have, and pre viewers to give input if the Message you want to deliver, get´s through.
All this said, by me is said with a humble voice and not meaning to ditch the Video and your effort at all.

I get that you have a lot of knowledge. But not the knowledge how to transfer it to those who does not have it.

Zen

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2 hours ago, KarmaCoverage said:

If I'm unclear on anything, or just bat shat crazy, then please ask a question, or correct a flaw (seriously if I'm wrong, I want to know). I hope this helps somebody understand more clearly.

I'm afraid I'm bat shat crazy too, any remedy you have knowledge of? 

More seriously, it might be the greatest video I have seen to understand Liquidity in the Ripple/ILP system even though it might require basic financial education.

I believe Multi Hops is more about what you talked about around 23', whereas what you draw at 18' was a "simple hop". (I think I read 3 of them or more constitute a multi hop) 

 

Another question I'd like to submit is about the ILP connection to Lightning nodes or Ethereum nodes.

We hear a lot about Ripple and their deployment of ILP based solutions to foster the usage of XRP, but how far are we to effectively connect the XRP/ILP network to BTC and ETH networks, and what are the next implementations to keep an eye on, according to you ? I mean, with the ability to scale up the usage. 

 

Such a connection would allow me, a XRP owner, to purchase REP tokens (which is almost exclusively traded for BTC or ETH) way more easily and effectively. 

Note: it would actually allow anyone to purchase REP with their currency and the best path I see would be : Fiat to XRP to ETH to REP. 

Edited by Guest

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@zenkert I 100% agree, the format was more for my convince, than for being the best way to communicate. My hope is that if people like this material I can sharpen things up (like a manuscript) as I learn. I did literally no prep on this, just typed up an outline, then started recording.

Thank you for your honest feedback, negative or critical feedback is more valuable than positive feedback.

54 minutes ago, Johnsnow77 said:

Another question I'd like to submit is about the ILP connection to Lightning nodes or Ethereum nodes.

I'm admittedly not fully up to speed on ETH (I think Codius will win, Betamax vs VHS) but I get the gist of things.

That said, I'm also honestly surprised we have not seen a smart contract market making bot span these networks (set to $0 / 0%) arbitrage profit. My understanding of Lightning is that it's much like Payment Channels but for Bitcoin..?

All you would need is a smart contract that managed a Payment Channel on XRPLedger, a Lightning Channel on that ledger, and the equivalent on the ETH ledger to do this. Maybe @tulo could share some insight, if I'm overlooking something? This was discussed at one point in the ILP sub-forum, and many times other places. Search "distributed exchange".

I honestly thing another instance of Rippled could be set up, and it could use the embedded pathfinding function to accomplish the role of a "distributed market maker". The Payment Channels on other ledgers would be issued as IOUs on the new Rippled ledger, and there are a number of ways this could be configured. There would be a need to manage the liquidity, both initial liquidity and the on going re-balancing of liquidity.

Now that Codius is back, and it is possible to guarantee via distributed methods that a transaction on one crypto ledger will trigger a transaction on another crypto ledger... I think its more of a matter of time. If someone wanted to work on this, let me know.

Edit, I guess I did a weak job of explaining multi-hop.. because as I did not explain, anytime 2+ market makers are involved it is a multi-hop TX. These can happen with multi-hops on-XRPLedger via IOUs, and can happen off-XRPledger if a bank (the one in the bottom left) is doing the market making.

Edited by KarmaCoverage

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33 minutes ago, KarmaCoverage said:

I honestly thing another instance of Rippled could be set up, and it could use the embedded pathfinding function to accomplish the role of a "distributed market maker". The Payment Channels on other ledgers would be issued as IOUs on the new Rippled ledger, and there are a number of ways this could be configured. There would be a need to manage the liquidity, both initial liquidity and the on going re-balancing of liquidity.

I definitely have to do more research before I comment on the other points you raised but about this. I found my way to the ILP Glossary and Arbitrage is defined as

The practice of doing cyclic transactions which start and end on the same ledger, or groups of simultaneous transactions which add up to one cyclic transaction. Taking advantage of quirks and fluctuations in exchange rates, the goal is to achieve a destination amount which is higher than the source amount. " 

And Cyclic Transaction is then defined as: 

A transaction where the destination account is the same account, on the same ledger, as the source account. This can be useful when rebalancing liquidity (to enable future payments), or when rebalancing stored value (to spread risk, or to take advantage of changing exchange rates).

I might be looking at the wrong direction, but it sounds like the "smart contract market making bot" is already integrated into the connecting ledgers or at least being conceived.

 

Anyway, thank you for your insights!

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2 hours ago, Johnsnow77 said:

I believe Multi Hops is more about what you talked about around 23', whereas what you draw at 18' was a "simple hop". (I think I read 3 of them or more constitute a multi hop) 

Thinking the same, multi hop is more about something like this, e.g. if you want to send money from Brazil to the US: 

1) You could make a direct xCurrent payment if you have, or pay to have, access to idle money in the US. 

2) You could make an xRapid payment to an e.g. EU country with subsequent fast rails to the US. 

3) You could have Brad personally board a plane at GIG and fly your cash to Mexico, deposit it at Bitso and trigger an xRapid payment to the US. 

Ripple software will tell you in advance which is the cheapest option and it's always the third. 

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2 hours ago, KarmaCoverage said:

All you would need is a smart contract that managed a Payment Channel on XRPLedger, a Lightning Channel on that ledger, and the equivalent on the ETH ledger to do this. Maybe @tulo could share some insight, if I'm overlooking something? This was discussed at one point in the ILP sub-forum, and many times other places. Search "distributed exchange".

also relevant of late: https://www.coindesk.com/the-crypto-protocol-trying-to-unite-every-exchange-order-book/

this movement is happening -- my gut says xrpl synthetic orderbooks will eventually come to the fore with offer autobridging as a liquidity provision mechanism

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1 hour ago, jcdenton said:

Ok 2) and 3) are going through different connectors and you still have to choose, it's an added feature. 

2) xRapid is most likely 1 hop for now I believe. The exchange being the connector to change your currency into the received currency, right? Single hop. 

edit: two hops if 2 exchanges are used I guess. 

3) Same but Brad gets to fly on a plane with cash. 

Multi hop is: I send EUR to a connector (first one) hat will change it into XRP and send it to another connector (second one) who will change it for BTC and send it to another connector (third one) to be changed for Dogecoin so that it can be sent to the very smart person requesting Doge as payment. ;) 

Edited by Guest

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2 minutes ago, Johnsnow77 said:

2) xRapid is most likely 1 hop for now I believe. The exchange being the connector to change your currency into the received currency, right? Single hop. 

3) Same but Brad gets to fly on a plane with cash. 

Multi hop is: I send EUR to a connector (first one) hat will change it into XRP and send it to another connector (second one) who will change it for BTC and send it to another connector (third one) to be changed for Dogecoin so that it can be sent to the very smart person requesting Doge as payment. ;) 

I'm not grokking your multi hop definitions so far, please explain more. 2) is one hop to Europe, but the destination is the US, so say Sweden then makes an xCurrent payment to the US, that would be multi hop. No other cryptos need to be involved, it's a tying together of their product suites. 

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31 minutes ago, NightJanitor said:

KC's a smart cat.  I already knew that from a couple of other exchanges, but this confirms it.  Batshit crazy you ain't.  Keep it up!

He is one of the smartest cats around here. Also wrong, or at least imprecise, on multi hop IMO. 

Between Ripple CorpComm shenanigans, rapidly iterating product team, and rogue employees' Twitter ramblings, it's been increasingly hard to figure out what is going on. 

Cory Johnson has been doing a phenomenal job obfuscating everything and coming up with these terms and narratives. 

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