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.