2023-05-22 02:31:10
yes yes yes!!!!! So think of it in micro/macro ways:
Pre-Stellar Protocol 18 (Nov 2021) there were no paths in Stellar
Anyone who had a wallet back then will remember that it was usually impossible to swap anything except back to XLM and often that did not even work. That was due to lack of payment pathways = bridges = market making
If you wanted to get rid of ShitCoin1 to buy QFSCoin1, you had to:
- sell ShitCoin1 into XLM and wait for a buyer to be interested in it (hence learning the order books)
- If there was no buyer, there was no trade. Period. You could wait until the cows came home for that!
- If you successfully sold ShitCoin1 for XLM, you would then manually put in another order for QFSCoin1
That is Manual Market Making, what I referred to as MMM on Mugzzi call last Tuesday. A very small handful of people including myself created strategic trades on the order books with other assets and also XLM to facilitate paths
Post-P18, we had Automated Market Makers (AMMs), which is why the swap button started to work more and more over time and pretty much works 99% of the time now. These are algos tied closely with Liquidity Pools (LPs) so the LPs create the extra liquidity needed for trades to flow across the dex, which is important when there is very low demand = few orders on the books, but it also spikes the transaction fees because it is still illiquid compared to say... the stock market with trillions of dollars. Stellar only has a few hundred thousand dollars or less depending on the day
Does anyone recall all those analogies I made about cars driving on roads (highways vs side streets) and how you have to divert when there is traffic on the streets (liquidity gaps) on our old Q&A calls? or the swimming pool and how you can't swim when there is no water just like you can't swap when there is no liquidity?
So now we apply this Stellar dex example to your blockchain scenario using your understanding of BRIDGES!!
100% correct: blockchains never had any interoperability before either, so that's why centralized exchanges raped us on fees trading between their designated trade pairs. And you had to use their specific trade pairings, there were no options to create your own
That's why XDC is nicknamed the "Bridge Coin" because it helps bridge the blockchains together. From there came wrapped assets and eventually wrapped blockchains, all done using smart contracts. This is why pendulum.pw and pen2lum.pw are so important because that is the team (@TokensFound) doing the legwork to bring those assets and their volume into Stellar!!! That is why they are minting the assets for PBFT like WPEN and possibly a few more!!!
This is also why the fake Pendulum Chain and their babysitter Jonathan continues to attack the .pw team (and me for backing them) because Jonathan is partnered with the Khazarians hahaha!!! AND THE PLOT THICKENS
This is why I have spent so much time and energy teaching about smart contracts and wrapped assets/blockchains and Soroban and PBFT. I have also been teaching about collateral too for 1year but it's not enough, this is essential to know to understand XRP's role in this
Because just like you said earlier, those are the into
And the white hats are using this same concept for other bridges too, like physical/digital currency, bank account/crypto wallet, SOCIAL MEDIA, etc
5.8K views꧁༒☬ 𝓟𝓪𝓽𝓻𝓲𝓸𝓽𝓠𝓪𝓴𝓮𝓼 ☬༒꧂ ( ) DO NOT PM ME, 23:31
Q
