Not strictly true, if you have sufficient means to convert the BTC to USD with little friction.
Preparations are being undertaken:
And regarding
I suppose that can be fostered by reviving liquidity at a lower offset, or spread, respectively.
We are working on that as well:
NuSafe is not a good example for reserve to be used soon. Send the btc to an exchange to convert to usd and leave it there will do.
you had an idea of doing this routinely before i remember.
I called it “proxying” BTC to USD as far as I remember.
I was very afraid of the volatility risks associated with assets like BTC and tried to mitigate those risks.
I shy away from the exchange default risk when leaving funds on exchange beyond those, you need for liquidity provision.
Keeping some funds at the exchange is no bad idea.
It would be great, if T2 could be “proxied” from NBT to USD and back (through NBT/BTC and BTC/USD) to protect proceeds from NBT sale against BTC volatility.
It would require liquid markets and cost a fee.
Automization for that is necessary.
A considerable part of the reserve needs to be kept in a safe place.
Polo has a liquid tether-btc market. the fee is very small compared with btc volatility.
I don’t know how to automate that, but can do that manually - just in case my NuBot sells lots of NBT…
What do the other FLOT members think of that?
@cryptog, @dysconnect, @jooize, @ttutdxh, @woodstockmerkle, @Dhume?
Great. Just posted a robot idea.
Stupid customers will check the offset/spread ONLY, smart customers will ALSO check the financial status of this company. Rememer one week ago, we had strict pegging and good liquidity? Everthing was fine. But I knew at that time that Nu was in very bad financial situation because of the big liability:net asset ratio, Nu may lose everything overnight.
In my personal assesment, if a DAO cannot pay off its debts within 6-12 months with its revenue , I’ll keep away from it. What’s Nu’s payoff period?
Sorry. Of what exactly?
The fact that another crypto currency is held as reserve cannot be a viable solution to stability.
Rather, the concept could theoretically be a pool of negotiated assets/commodities which the shareholders agree to purchase. This could be things like the flooring of inventory to the purchase of silver an gold. Liquidation of NuBits would be determined by the NuBit holder exiting at a lower price and new NuBit holder takes share of Investment Pool Fund. The goal would be to grow the general size/net worth of the Investment Pool Fund. Interest could be earned by risk (ROI capital) and transaction fees.
Of that:
Oh I see. So you would want to keep some of funds of T2 into stable instruments.
I think it makes sense.
Then let’s fight for that!
It made sense when I wrote about it the first time in a comprehensive way, almost exactly one year ago:
But it lead to no action.
Maybe I textwalled people away.
How do you explain complex matters without going into greater detail and providing explanations?
Should I rather say: we do it this way, because I know it’s right?
I prefer to explain, provide a rationale and let others validate, falsify or improve them.
@masterOfDisaster
Could you tell me the quantity of NBT in circulation? i e How much debts does Nu have?
And what percentage of BTC proceed has been spent to LP or share buy back?
You’ll find most of that info in the threads here:
and here:
Shareholders include me need to be able to read quickly detailled explanations. I hope i have improved my skills compared to 1y ago.
Totally puzzled, what is nusafe? These test are very hard to understand.
700,000$ debt?
NuSafe is a scheme that kept $30,000 on reserve.
The operator @Dhume put a collateral in BKS into the hands of FLOT and traded BTC he received from FLOT to USD, which he managed on behalf of Nu.
I remember Jordan has parked 150,000NBT which belongs to B&C developement, so if NBT fails in pegging, B&C will lose this money and may not complete the develope.
In this situation, do you believe eleven will accept NBT as salary?
OK, Nu has nearly 700,000$ debts and 36,000$ asset. Well done guys, some people has earned 664,000$ from Nu after 1.5 years operation.
Then, B&C has sufficient fund to finish?
At the moment he could trade them for an uplift of 5%. We can hope this improves again.
Volatility of BTC has recently been bigger than this uplift.
A part of it was used for expenses like (this list isn’t complete)
A part of it was paid to shareholders through
Running a business without expenses is hardly possible.
Startups are often deep in the red - until they evantually succeed or fail.
The liquidity provision has been identified as significant expense and provides room for improvement.
My experience from January this year made me write this analysis/proposal: