Quote from: noggin-scratcher on January 05, 2015, 06:23:52 PM

Quote from: mjr on January 05, 2015, 04:07:05 PM

Not sure about Bitstamp, when I read that story, I didn't even think about that, because it has been so long since we really did much over there. I will get back to you, but I don't believe that it has any effect on us.

Good to hear, but can some sort of official confirmation there be prioritised?

All I've seen is some deliberately-vague Reddit posts from Raphael (from some time ago) talking about how you used to have a reasonable quantity of funds on Bitstamp to implement mirroring their orderbook onto 'Finex (effectively arbitrage between the two to add some depth to the books here), and that they were intending to "reduce" the amount of that they did.

That was offered as an explanation for the price on Stamp and Finex starting to diverge and when someone asked for details of how that reduction was going to happen they were turned down with words to the effect of "I can't tell you that". I'd been assuming that, with that link severed, you would have no need to keep funds with a 3rd party and would have withdrawn them out since then, but it would be calming to hear it officially and definitively.

As for FRR...

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Then the liquidity provider can plan for this by simply putting out an offer at a much higher rate. Once the lower rate offers exit en mass (why they currently have offers that aren't filled, and are content to leave those offers on the books...its not my theory, I don't know) you are now at the top of the book. Congrats, you are now receiving the returns that you think are appropriate.

Became tired of the effort of manually placing offers for the current returns, placed high offers to wait for better rates... so I guess I'll be able to report back ~~soon~~ eventually, as to whether this strategy pays off.

Yeah, this question has been popping up today. I was surprised because I didn't realize people still thought we had funds there. Their issues had no affect on us. We had (past tense) maintained a safety valve, in order to allow more liquidity when our books were thinner. This was quite some time ago, and was a remnant of the time when we offered routing of orders to Bitstamp. That is no longer the case, and we had quietly discontinued that as our volume and our books grew much larger than theirs. In any case, it hasn't affected us at all. We basically offloaded that functionality to market makers who arb the different exchanges books. Once we became big enough, with a deep enough book, there was really no reason for us to have to deal with that anymore.

Yeah, I personally am taking another look at the BTC swap market now...but then you also are long BTC in a bear market...I don't really like trying to predict market moves. I hope your strategy pays off, I think it probably has a lot to do with the overall demand for going long on margin, which I imagine has dried up a little bit as the bulls have gotten burned maybe once too many times now.