Although it all started with a “back-of-the-envelope” calculation, I thought it might be appropriate to track the status/balance/liquidity in a dedicated thread and not buried on another one.
I consider it useful for accounting purposes.
From: [Passed] NBT entry gateway on Poloniex provided by @masterOfDisaster
I made an extensive back-of-the-envelope calculation calculation. Here’s the result:
###Deposits and withdrawals
-
sell side gateway
10,000 NBT deposited at 2016-01-12 12:36
10,000 NBT deposited at 2016-01-13 06:32
10,000 NBT deposited at 2016-01-15 14:54
20,000 NBT deposited at 2016-01-15 23:00
16 BTC withdrawn at 2016-01-13 18:31
16 BTC withdrawn at 2016-01-14 21:11
6,800 NBT withdrawn at 2016-01-18 12:50
5,000 NBT withdrawn at 2016-01-19 12:49 -
buy side gateway
20 BTC deposited at 2016-01-09 00:03
50 BTC deposited at 2016-01-17 03:47
6,800 NBT withdrawn at 2016-01-11 12:36 -
in total
-
NBT
50,000 NBT deposited
18,600 NBT withdrawn
31,400 NBT difference -
BTC
70 BTC deposited
32 BTC withdrawn
38 BTC difference -
The total of funds currently being at both gateways needs to be compared with the value of
36,400 NBT and
38 BTC.
Status of the gateways at 2016-01-19, 18:15 UTC
-
sell side gateway
14,200 NBT
22 BTC -
buy side gateway
11,900 NBT
24 BTC -
in total
26,100 NBT
46 BTC
If you sell 8 BTC now (at $385; to relate the total to the 38 BTC that result from the “Deposits and withdrawals”) that creates ~3,000 NBT proceeds.
Which makes the status of the gateways:
29,100 NBT
38 BTC
2,300 NBT seem to be missing, but you need to take into account that not only the hedging, but the reduced value of the BTC play a role. If you could sell 8 BTC at $435, the difference would be below 2,000 NBT.
In the end it looks like keeping the peg on Poloniex during the BTC rollercoaster cost Nu $2,000 and made me some years older.
The question’s are:
was it worth spending the $2,000 to keep the track record of NBT in a good shape?
Would the damage to Nu’s image have exceeded $2,000?
I have no answer to these questions. My gut feeling tells me, it was worth it. I couldn’t know the price of that before, but knowing in advance that it’d cost Nu $2,000 wouldn’t have shied me away from breaking the terms to prevent the peg from breaking.
I miss an extensive dicussion about that (mis)behaviour (using proceeds from gateways to put them on the order book instead of withdrawing them in slavish obedience) in the forum.
I might be able to live with a pardon - considering my motive and the results.
I can’t live with just maintaining silence about it.
This must not create a precedent for breaking terms!
From: [Passed] NBT entry gateway on Poloniex provided by @masterOfDisaster
Status of the former gateways at 2016-01-20, 18:30 UTC
-
former sell side gateway
9,735 NBT
33.8 BTC -
former buy side gateway
20,868 NBT
1.9 BTC -
In total
30,603 NBT
35.7 BTC
sidenote:
if you look at yesterday’s status and multiply the 46 BTC in total with $385 (yesterday’s BTC rate at the time of writing), the total value of yesterday’s funds on Poloniex was
$17,710 (BTC) + $26,100 (NBT) = $43,810
Today’s status (BTC at $408 at the time of writing):
$14,565 (BTC) + $30,603 (NBT) = $45,168
While it looks like Nu made money trading on Poloniex (and to some degree that might be true due to the offset), the main benefit was not having lost all BTC when the price was down and started going up (and now still having BTC when they are worth more than yesterday).
Having increased the offset of the NuBots to around 1% prevented having all BTC funds being traded to NBT while allowing to keep the peg quite closely.
I made another calculation - yesterday’s BTC funds (46) with today’s price ($408):
$18,768 (BTC) + $26,100 (NBT) = $44,868
It looks like Nu made $300 during today’s rollercoaster!
Is my math flawed?
Current configuration of one NuBot has a lowered offset for sell side (0.4%) - as incentive for trading NBT for BTC (the BTC funds are only 1/3 of the total funds).
Addendum for 2016-01-20
making the adjusted balance for that account
- former buy side gateway
15,868 NBT
1.9 BTC
and
- both former gateways combined
25,603 NBT
35.7 BTC (at $408 per BTC valued $14,565)
’-------
$40,168 total account value
Status of the former gateways at 2016-01-21, 18:00 UTC
-
former sell side gateway
13,279 NBT
25.2 BTC -
former buy side gateway
10,600 NBT
14.5 BTC -
both former gateways combined
23,879 NBT
39,7 BTC (at $407 per BTC valued $16,157)
’-------
$40,036 total account value
Withdrawal of 5,000 NBT to FLOT scheduled for today;
5,000 NBT withdrawn at 2016-01-21 22:42
10 BTC deposit by FLOT pending (4 have signed, 5 are required).
For the first time in weeks no need to hurry with the latter one.
This is just a scheduled balancing 
Status of the former gateways at 2016-01-22, 07:45 UTC
10 BTC were sent from FLOT to the gateway and credited by Poloniex on 2016-01-22 00:37 UTC.
Currency Amount Address Date Status
BTC 10.00000000 1M3khPfXJreaFVbHab5XFEngwhbRh5Nxyi 2016-01-22 00:37:20 COMPLETE-
former sell side gateway
8,279 NBT
25.2 BTC -
former buy side gateway
10,600 NBT on sell side
24.5 BTC on buy side -
both former gateways combined
18,879 NBT
49,7 BTC (at $397 per BTC valued $19,730)
’-------
$38,609 total account value
Status of the former gateways at 2016-01-23, 01:15 UTC
-
former sell side gateway
3,601 NBT on sell side
37,3 BTC on buy side -
former buy side gateway
6,715 NBT on sell side
34.5 BTC on buy side -
both former gateways combined
10,316 NBT
71.8 BTC (at $390 per BTC valued $28,002)
’-------
$38,318 total account value
Status of the former gateways at 2016-01-23, 22:10 UTC
13 BTC were sent from FLOT to the gateway and credited by Poloniex on 2016-01-23 18:40 UTC.
13 BTC were sent from FLOT to the gateway and credited by Poloniex on 2016-01-23 19:02 UTC.
Currency Amount Address Date Status
BTC 13.00000000 1M3khPfXJreaFVbHab5XFEngwhbRh5Nxyi 2016-01-23 19:02:41 COMPLETE
BTC 13.00000000 1M3khPfXJreaFVbHab5XFEngwhbRh5Nxyi 2016-01-23 18:40:07 COMPLETE-
former sell side gateway
2,101 NBT on sell side
41.2 BTC on buy side -
former buy side gateway
7,590 NBT on sell side
58.3 BTC on buy side -
both former gateways combined
9,691 NBT
99.5 BTC (at $389 per BTC valued $38,705)
’-------
$48,396 total account value
