I need to know the concept of path payments, should path payments are connected with offers or they just find the path.
I am confused how path payments works.
Any reference or example is great if provided.
I understand path payments from one currency to another. But why allow same currency to same currency. XLM - XLM I don't see a need.
typically XLM-> XLM is for arbitrage.
for example XLM -> USDC -> USDT -> BTCLN -> XLM and make 0.1 XLM
Why the need for this.
Arbitrage = making free profit.
But it is affecting the coins price
Path payments are useful when a payor does not hold an asset which a payee is to be paid, but for which market offers exist in exchange for an asset the payor holds. Presumably liquidity pools now function similarly to the market in this example.
I understand the reason for the path payment. But what I am not happy about is path payment between the same currency. Xlm —> usdc —-> xlm. What is the need for this. Cryptos were never created for users to make profit. Ours is a charity every time the price of the token goes up someone comes along do a path payment using our token and our token price goes back down.