I have a question pertaining to risk for bridge liquidity

Question

I have a question pertaining to risk for bridge liquidity

providers on Arbitrum. Would it be fair to say there is a slight risk to the liquidity they provide on Arbitrum due to the fact that within 7 days a block on ArbOS might be challenged and reversed? If any funds in a reversed ArbOS block are bridged by a node, that node stands to lose some of its liquidity. What is being done to minimize this risk?

#celer #cryptocurrency #english

0

28.09.2021

4 ответов

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J C

You’ll notice Arbitrum outbound transfers cost more (like 0.5% instead of 0.04%). I’d think it has at least partly to do with this reason. It would stand to reason that in cBridge 2.0, Arbitrum LPs will also receive a greater fee in return for this risk. (Just my thoughts, will be good to ask Mo)

0

28.09.2021

J C

This is literally in the docs: “The fee percentage ranges from 0.04%-0.1% for most transfers except for transfers orginating from Arbitrum and Optimism where the fee percentage is 0.2% because of the particularly high liquidity rebalance cost.”

0

28.09.2021

J C

Also again, stated right in the FAQ ^

0

28.09.2021

Oli J - WON’T DM YOU · Accepted Answer

Oli J - WON’T DM YOU

I think this is a great question to bring to Dr Mo at the AMA on Oct 1 that was linked just above your post. It's a little out of my technical scope

0

28.09.2021

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I have a question pertaining to risk for bridge liquidity

4 ответов

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