[ANN] Nu Lagoon Pool C and Pool D Now Begin Operation, NAV of Pool A and D Reach A Record High

[seki]

amazing job Henry and insane profitability!

[masterOfDisaster]

It’s been some time since I last visited http://nulagoon.com/
To be honest it was the time when nulagoon was just started.
I was overwhelmed when I looked at it again.
The site looks amazing and very professional.
So not only the nulagoon itself, but the appearance are great.
Thumbs up for your efforts, @henry!

[henry]

NAVs are not affected negatively by the huge recent volatility of BTC.

That is because the BTC price rose, overall, in last several accounting days.

To give a very rough estimation about the case that NAV decreases, if about half of the fund in the pool is stay on BTC.

• For Pool A, the custodian fee earned for a week is about 1.68%. So if BTC price drop over 3.36% in a week, there will be a loss for NAV C.

• For Pool C, NAV will never decrease, if no default event occurs.

• For Pool D, the size of Pool D is about 2 times of the size of Pool C. the custodian fee pool C and D earned for a week is about 1.68%. If BTC price drop over 3% in a week, there will be a loss for NAV D.

[crypto_coiner]

Congratulations to Pool user: BQuQX8BiXofvLf4Jn7i1iyjQJbV8iPBDaU. His profit is more than 1000 NBT now.

That’s impressive - how much money did that user put?

[henry]

how much money did that user put?

about 4000 nbt

[seki]

if i calculated correclty, this specific investment is almost 4 months old now !

[seki]

Henry, is it possible to process the withdraws more often than once per week?
i think the deposits are automatically take part in the pool?

[henry]

We have received many suggestions about how to improve the operation of Nu Lagoon recently. They mainly focus on two aspects:

1. increase the frequency of accounting. Withdraw can only happen after the accounting is done.
2. lower the minimum limit of fund deposit.

We are assessing these potential improvements now. There is no doubt that we will keep improving Nu Lagoon.
Thank you.

[cryptog]

By the way, where can you check the liquidity provided by each pool in real time?
Something like http://eu.nupool.net/status would be great.
(sorry if I am asking a question that was already dealt with.)

[masterOfDisaster]

The total volume of the pools per accounting day can be found here: http://nulagoon.com/data.html
The amount of money in the different tiers might change between the accounting days according to

[Nu Lagoon] The Nu Lagoon is supportting Bitcoin.co.id now | NAV: 1.062 @ 14 May

If buy side or sell side of fund in tier1 and tier2 has less than 25%, the manager will manually balance it by transfer fund between tier2 and tier 3 once every working day. If either NBT or BTC in tier3 is not enough for the need of balance or withdraw, the manager will convert fund from otherLPC and exchange.

I agree that a real time status would be nice.

[Nagalim]

Can we get NuLagoon up on here by any chance?
https://raw.nupool.net/?pairs=true

[willy]

The script is tailor made for the json responses of tllp servers. I never looked much into NuLagoon, so the data.html mOD posted doesn’t really help me.

[cryptog]

I agree that a real time status would be nice.

I think it is a must to have a real time tool for a liquidity pool…Is there a way to compute easily the contribution of NuLagoon from the Liquidity info?

[henry]

Thank you for the effort on adding NuLagoon’s liquidityinfo to the site.

All the fund of the three pools are put together to support the NBT/BTC trading pair in the two exchanges. They are not separated except the accounting.

The info of Tier1 and Tier2 can be found under address BHQJN5NnDimvTC9Md6a3Lc8sNkHGiizTMo by RPC command getliquidityinfo, and is updated real time.

The info of Tier1, Tier2 and Tier3 can be get by JSON file: https://raw.githubusercontent.com/henrynu/NuLagoon/master/res/data/nav.json, and is updated twice a week.

Thank you.

[Nagalim]

Now the daily custodian fee rate is 0.34%. The daily custodian fee rate could be adjusted by new motions passed by Nu Shareholder.

Is this still the way things operate? If so, could we consider an asymmetric custodian rate for NuLagoon? Like 0.3% sell side and 0.38% buy side? Could we also consider increasing the spread on NuLagoon and decreasing the rate so that the the NAV remains the same?

[henry]

I donot see clearly how it would work in practice, as money should go freely from sell side to buy sell in the free market.

[Nagalim]

Spread is a parameter in nubot. So that’s how that works, practically speaking. Do you know what your spread is? Would you ever consider complying with the spread regulation motion that passed a few months ago?

For asymmetric rewards, you currently take the total liquidity provided on both sides and multiply it by 0.34% then charge shareholders that. Instead, take the liquidity on the sell side and find 0.3% then take the buy side and find 0.38%. Then add those numbers together and charge the shareholders that number.

[Financisto]

@henry

1. Interest rate of Pool C has dropped considerably since november, any further explanation about its causes?

2. Could you elaborate a little more about the main differences (risk and profit model) between Pools A and D?

3. Would you mind ranking the pools by their risk/reward models? (I guess C is less risky and D is the most “dangerous” among them)

P.s. I’d suggest that you add more detailed info about how each pool works (data about their individual risk/reward models) at nulagoon.com… It also would be nice if you write some info about security measures adopted while handling the total assets. I mean: use of VPN, TOR, Linux, Tails, dedicated machine to run nubot, etc.

[henry]

1. Interest rate of Pool C has dropped considerably since november, any further explanation about its causes?

2. Could you elaborate a little more about the main differences (risk and profit model) between Pools A and D?

3. Would you mind ranking the pools by their risk/reward models? (I guess C is less risky and D is the most “dangerous” among them)

1. Because pool D shrank significantly. Please have a look at interests rate adjustment terms of pool C.

2. Pool D is more risky than Pool A, because Pool D borrow Pool C’s fund to provide liquidity operation

3. They rank as pool D (most risky), pool A(intermediate risky), pool C(least risky)

[henry]

NuLagoon Pools decided to adjust the terms of Pool C and D as follow:

1. The balance target of size of Pool C and Pool D is set to 1.5:1

2. If Pool C and D is unbalanced, interest rate moves up or down by 5% in each adjustment.

The update effective next accounting day: 19 May 2016.

One of the feedbacks regarding Pool D is that although it is named leveraged liquidity pool, but its effecitve leverage ratio is less than 1. The above terms adjustment will increase the leverage of Pool D to approximately 1.25x of Bitcoin + custodian fee. This should significantly increase Pool D 's performance in a Bull BTC market.

http://nulagoon.com/lqpools.html#TermCD

Pool C Interest Rate Adjustment:

• The pool C’s annual interest rate will be 20% when it begin operation.

• When the total asset of pool C is greater than 125% of 1.5 times the total asset of pool D, then pool C’s annual interest rate will decrease by 5%, new rate begin effective at the next accounting day. The minimum of the interest rate is 1%.

• When the total asset of pool C is less than 80% of 1.5 times the total asset of pool D, then pool C’s annual interest rate will increase by 5%, new rate begin effective at the next accounting day. The maximum of the interest rate is 100%.