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@LongSats

@jespow

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Get me access to whatever benchmark liquidity you used for that math 🤣

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Your rate compared to sourcing directly from an exchange like Binance with a material amount like 1 BTC. Compare both a sell and a buy. About 3% either way.

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Where are you getting ShapeShift's rate from, and on what pair?

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Method: 1. Your brokerage spot from your site. 2. An exchanges spot from their sites. 3. The reviewed markets were the more liquid markets like ETH/BTC, LTC/BTC Feel free to check the rates yourself. I witnessed between 2-3% markup on each side. It was simple math to check. 👌

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Apologies for being so direct, but you’ve gotta be looking at the wrong quotes or doing the math wrong. If you can find crypto to crypto rates 3-6% better than ours then we should all quit and start an arbitrage fund together. They don’t exist.

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Honestly, I didn't expect this to be news to you. I did some simple quick math with your sites quotes and the exchanges. You have a spread profit attached to your rate that is higher than sourcing from an exchange. This all makes sense based on the totality of this thread. ✌

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Ok I’ll just leave you with one final thought - take 1 BTC amount and test it from eth->btc and btc->eth. That spread will be <3%. How can we be “charging 3% spread on both sides” if our own market isn’t 3% wide?

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does arbitrage at scale and they are top 5 on bitmex for volume and they account for 5% of all #btc trading at times. So yes, arbitrage vs a spread on all trades is lucrative and being a broker isn’t easy but providing liquidity to the market is important and needed

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A few thoughts: 1) Shapeshift looks ~0.30% wide, not 3% wide, for me; seeing e.g. 50.41 vs 0.019857 for ETH / BTC. Still wider than you'd get from a top exchange or OTC desk, but tighter than e.g. a DEX. 2) Arbs can be lucrative, though the spreads are generally << 3%.