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Breanne Madigan - OECD

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5 minutes ago, hallwaymonitor said:

I'm going to use this number 77,000 XRP as a baseline while monitoring the XRP/MXN live trades in Bitso. This number must go up a lot before big boys can start using xRapid in Bitso.

I applaud and appreciate your work.  Thanks.  

One thing I would point out,  that might come into play,  is hidden liquidity.  When you see a order book you may not be seeing (and probably aren’t if market makers are active) all of the liquidity available at any particular price point.

So they may programmatically and with high frequency respond to bids and offers that would until that response have instead walked up or down the book.  The dynamics of all that is way beyond me,  but I know of the existence of these hidden pools of liquidity as a general principle,  and they could be in play in the XRapid corridors.  Just thought I’d mention the possibility.

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10 minutes ago, hallwaymonitor said:

Exactly! Based on my findings the max. single XRP/MXN trade you can make in Bitso right now is about 77,000 XRP. If you try to trade bigger amount than that it will be split to multiple parts (often incurring slippage too). E.g. Single XRP/MXN order of 100,000 XRP will lead to two successful trades 70,000 XRP (4.89 MXN) and 30,000 XRP (4.88 MXN). Why? Because the current market makers in Bitso don't have deep enough pockets to provide the required liquidity for higher than 77,000 XRP sized trades.

I'm going to use this number 77,000 XRP as a baseline while monitoring the XRP/MXN live trades in Bitso. This number must go up a lot before big boys can start using xRapid in Bitso.

image.thumb.png.33d335983944dc6201a16eb3160d1aaf.png

Good observation. Thats why I keep saying that all of this will take a long time, the mexican corridor is open but still very small. And it has to be that way, you cant build deep liquidity just over night.

Good thing is Ripple is more or less alone in this field, there is no real competition in crypto for that use case :)

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28 minutes ago, Tinyaccount said:

One thing I would point out,  that might come into play,  is hidden liquidity.  When you see a order book you may not be seeing (and probably aren’t if market makers are active) all of the liquidity available at any particular price point.

So they may programmatically and with high frequency respond to bids and offers that would until that response have instead walked up or down the book.  The dynamics of all that is way beyond me,  but I know of the existence of these hidden pools of liquidity as a general principle,  and they could be in play in the XRapid corridors.  Just thought I’d mention the possibility.

Monitoring order books is generally very confusing because there might be fake sell/buy walls and all sorts of shenanigans going on. That's why I have basically ignored the order books thus far and concentrated on the live trades because they represent the reality better.

My assumption is that the existing xRapid XRP/MXN market makers in Bitso don't keep their orders visible in the order books all day. Instead, they will probably know somehow in advance when the next xRapid txs are coming to Bitso from Bitstamp via XRPL. Thus, right before the XRPs land on Bitso's account the market makers initiate buy XRP / sell MXN orders and right after that the xRapid takes those orders and hence we see unusually big live trades (such as that 77,000 XRP trade) in Bitso.

To put my assumption to the test I'm going to monitor BUY ORDERS and MOST RECENT TRADES sections in below link when I will get the next opportunity such as in below picture.

https://bitso.com/trade/market/xrp/mxn

image.png.294775484e887664611f766fcf657e54.png

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13 hours ago, Truckdriver said:

Robot , chicken,  wizard , ant , animals, cartoon characters, the seats would eventually be filled but it would be like herding cats lonesome GIF

True. But there’s nothing more satisfying than when you manage to bring in a herd of shorthair’s to town. Ahhhh choooo!!!

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19 minutes ago, djdhrubs said:

Can anyone give an example of a market maker other than an exchange? What does the term actually mean?

Exchanges actually employ market makers, pretty sure I read that Binance and Ocean Ex do it, basically every professional exchange out there. They provide liquidity

 

Quote

Makers Market are member firms appointed by the stock exchange to maintain the liquidity and trade volume into stock markets. A Market Maker is commonly known as a broker firm that provides purchase and sale options for investors in order to keep the financial markets volatile.

 

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3 minutes ago, Zerp_Legend said:

Exchanges actually employ market makers, pretty sure I read that Binance and Ocean Ex do it, basically every professional exchange out there. They provide liquidity

 

 

Ok so they are separate firms employed by exchanges but do you know any examples ie names of firms like these, for crypto? I’m guessing some could even be individual whales providing a big stash of their own coins for a fee?

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34 minutes ago, djdhrubs said:

Can anyone give an example of a market maker other than an exchange? What does the term actually mean?

https://www.gsr.io/

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11 hours ago, Tinyaccount said:

It’s called priming the pump.  VISA did it when they started too.  That’s the giant advantage that Ripple have...  a war chest to fund necessary steps on the way to that level playing field.  

It’s a bit encouraging to see how someone used to dealing with Institutional money views the current order books as very thin.  :JC_doubleup:

I thought Ripple had patented a method to incentivize anyone who provided liquidity? The one Bob Way was talking about. Do you know what happened to that?

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10 minutes ago, elias said:

I thought Ripple had patented a method to incentivize anyone who provided liquidity? The one Bob Way was talking about. Do you know what happened to that?

I’m not sure exactly what it was,  or how it works,  or if it still going to be of use in the evolving markets.  I only know what was said by Bob here.  Plans change.

My belief is that the method probably still exists and that it may be deployed by Ripple at some point but has not as yet.  I occasionally wonder if last September was a test but really have no idea.  I would love to know what Sept actually was...

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13 hours ago, Tinyaccount said:

I’m not sure exactly what it was,  or how it works,  or if it still going to be of use in the evolving markets.  I only know what was said by Bob here.  Plans change.

My belief is that the method probably still exists and that it may be deployed by Ripple at some point but has not as yet.  I occasionally wonder if last September was a test but really have no idea.  I would love to know what Sept actually was...

I think he said there was no (immediate) plan to deploy it and that it was more a defensive thing. It was a method and they patented it, but they don't have to use a patent.

When they say in this video that MMs are interested even without the incentives I don't know if it'll actually be deployed. Although it could speed up liquidity build-up.

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