Can anyone confirm what the plan is going forward for minimum confirmations for Bitcoin deposits?
Currently there’s a ~2% difference between the Bitcoin price on Nash and the rest of the market, this would be a great arbitrage opportunity if there wasn’t a 2 confirmation withdrawal wait plus the 6 confirmation deposit wait on Nash and the other exchanges.
The most obvious solution is for Nash to reduce the confirmation requirements for deposits assuming it would be safe enough to reduce it to say 3.
In the case where it isn’t safe enough to reduce the number of required confirmations it’s possible that competing exchanges could open their own account with Nash and arbitrage between their exchange and the market on Nash, I’m not sure if there are sufficient incentives for them to do so but it’s one way forward.
A while ago Nash was running their best price program, maybe there’s a mechanism Nash is working on for Bitcoin in the context of this program?
Best case scenario I can think of is that all exchanges open their own Nash accounts and use that to arbitrage between each other effectively allowing Nash to replace the Liquid network.
If anyone has some insight into arbitrage and price differentials it’d be much appreciated.
Would it be possible to transfer directly to the smart contract? Or does it pose a too serious security risk? Maybe deposit could be permitted directly to the smart contract, but withdraws would be only authorized to the Personal wallet @canesin
As far as I’m aware it isn’t technically possible to open a state channel for an address other than the one which is signing the transaction but I’d be happy to find out I’m wrong.
It took me +90minutes to get my BTC from my personal account to the trading account.
6 confirmations is too much in my opinion and you can miss a good trade
There might be KYC issues with this. I don’t know the tech issues involved. I know a tool is being developed to let you withdraw from the trading contract directly. Not sure about depositing into it.
We are looking into variable number of confirmations for different actions with the goal of allowing the fastest movement possible without compromising security.
On the mean term, if you are looking into arbitrage, you could keep a balance of BTC already in the trading contract and on the other exchange. That should allow for less frequent re-balancing of funds and better risk management.
