100% NBT reserve and elastic NSR supply


#21

Excellent foresight all around in this thread. Many points are not theories but experiences for us now.

I hope now is not the beginning of the end, but the end of the beginning.


#22

This depends on the lessons we learn and on the near future.
The brand image of NBT has been damaged; how much can be seen in the next bearish BTC phase.
Is there enough confidence in Nu to buy NBT for hedging BTC drops?
We need to do our homework to give reason for that confidence!


#23

100% reserve only feasible at NBT/USD pair because on BTC/NBT pair the ratio is fluctuating.

Currency’s success comes from customers’ confidence, and their confidence comes from company’s profitability.


#24

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:


#25

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.


#26

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.


#27

Polo has a liquid tether-btc market. the fee is very small compared with btc volatility.


#28

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?


#29

Great. Just posted a robot idea.


#30

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?


#31

Sorry. Of what exactly?


#32

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.


#33

Of that:


#34

Oh I see. So you would want to keep some of funds of T2 into stable instruments.
I think it makes sense.


#35

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.


#36

@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?


#37

You’ll find most of that info in the threads here:

and here:


#38

Shareholders include me need to be able to read quickly detailled explanations. I hope i have improved my skills compared to 1y ago.


#39

Totally puzzled, what is nusafe? These test are very hard to understand.

700,000$ debt?


#40

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.