WHY WE ARE MOVING IT

Everything about the trade is public the moment it is proposed.

A bilateral swap on a public chain is a contradiction. Two parties agree terms privately, then broadcast those terms to the entire network in order to execute them.

• The size is visible

  Anyone watching the mempool sees the amount before settlement and after. For a desk moving anything meaningful, that is the position published.

• The rate is visible

  What two parties agreed between themselves becomes a public data point that their next counterparty prices against.

• The counterparties are visible

  Addresses get clustered. Who trades with whom, how often, in what size, is inferable within weeks by anyone who cares.

• The intent is visible before it executes

  This is the worst part. A pending transaction is an announcement of what you are about to do, to an audience that can act on it first.

None of this is a flaw in Ethereum. It is what a public ledger is for. It simply makes public chains the wrong venue for a trade whose entire value is that it happened between two parties and nobody else.