Continuing the discussion from [ANN] sell side gateway at Bittrex by masterOfDisaster:
Intro
To continue the path to a focussed liqudity provision scheme, I want to offer a sell side (sell side only!) gateway at hitBTC.
That’s why I thought a sell side gateway there might be appreciated.
About the exchange
I once provided liquidity there (“modPuddle”) with a dual side operation (MLP style, with funds of friends and later own funds) and found the experience (reliability, stability of API, user interface) using hitBTC extraordinarily great.
The NBT deposit address is BQuc7rf5NTbcCQ4zonjBSPq5gBFw4ibUYH.
I won’t post a BTC deposit address as I don’t intend to make it a dual side gateway.
One thing is different from hitBTC and all other exhanges that I know:
hitBTC differentiates between a “Main Account” and a “Trading Account”. Funds that are deposited are in the “Main Account”. To make them available (e.g. for NuBot), I need to manually move them to the "Trading “Account”.
I don’t think this is a big issue, but wanted to make this clear; “activating” deposits won’t be done automatically.
Awaking shareholders
I’m not intending to create a motion for the contract.
I will strictly refer to the discretion of FLOT.
If FLOT deposits funds from the FLOT multisig address, this contract will be enabled.
The proposal at Daology is to provide a hash to ensure the contract doesn’t get changed after it has started.
If NSR holders don’t want this to happen or want to stop it, they might create a motion to stop it.
Contract
Hashed version of this contract:
https://daology.org/proposals/3f31e3bd96c57f477ce6fc7062997d73df426903
Hash: 64a4e368d0bab0a06b87a8dd6d5224f42535b8b0
Copied version of the Daology version:
###Intro
@masterOfDisaster - below called "the operator" - will operate a NuBot on the exchange mentioned below. The liquidity is being broadcast using a custodial address to allow tracking the liquidity situation of the bot. If the gateway needs funding, Nu (FSRT, FLOT, JordanLee, etc.) sends NBT to the exchange account deposit address. The NBT get sold and the earned BTC are not put into orders, but get transferred to a Nu address (T4 buy side) on a regular basis.
The process of selling NBT can be tracked with the getliquiditydetails RPC.
### Disclaimer
The operator charges a low fee for this sell side gateway, but offers no guarantee for anything - neither the availability of NuBot nor malfunctions of NuBot nor outages of the internet access nor the funds on the exchange.
The operator promises to send all (remaining) NBT and traded BTC to Nu (FSRT, FLOT) on a regular basis.
The operator is not responsible for tracking the funding level of the gateway.
The operator won't take any of the funds or trade them.
Nobody except Nu should send NBT to the gateway as **all** proceeds (or remaining NBT) will solely be sent to Nu addresses.
Funds that have been put on the exchange account by the operator for testing/monitoring purposes before the contract starts, are excluded from this rule.
### Parameters
* Operator: @masterOfDisaster
* Type: NuBot
* Exchange: hitBTC.com
* NBT deposit address: BQuc7rf5NTbcCQ4zonjBSPq5gBFw4ibUYH
* Pair: NBT/BTC
* Mode: Sell side only
* Sell Side Offset: > 1%
* Duration: 30 days, automatically extended by 30 days until withdrawal of all funds has been requested by authorized entity (NSR holder motion, FLOT majority in the respective group)
* Liquidity broadcast address: BETwD8nSjtj9ADSvej2na34xmsMYwPRymv
* Operator Fee: 30 NBT
### Activation of the gateway / starting the contract
Operation starts the day a Nu representative group or person (JordanLee, FLOT, FSRT) deposits funds at the deposit address.The NBT broadcast address was once granted here for sell side activities at Poloniex.
It will be reused here, as it’s not Poloniex, but still a sell side activity.
The broadcast address will be shared between the Bittrex gateway and this one (and maybe additional gateway I’ll offer).
That makes checking the liquidity a little bit more complicated, but after thinking twice, requesting and tracking a dedicated NBT address for each operation creates a lot of efforts for both the NSR holders and the operators.
Liquidity per exchange is still available through “getliquditydetails” RPC.
One NBT address for liquidity broadcasting per operator should be fine.
Economical comparison
To comapre the financial attibutes of this sell side gateway with an operation that was contracted by NSR holders under the name modPuddle, I compare the provided liquidity and the costs.
It’s a little bit of comparing apples and oranges, because one operation was an MLP with rebalancing, etc. and this will be a sell side gateway.
Still the numbers are:
modPuddle liquidity: $1,500 (both sides; balancing at least once a week; target: each side with at least 45% ($675) volume)
modPuddle costs: 225 NBT/30 days
gateway liquidity: as much as Nu wants to provide
gateway costs: 30 NBT/30 days
While Nu obviously got more service from modPuddle, an important part of the contract was
and that is something Nu can have here as well - there just need to be enough NBT there.
Oh, there won’t be a buy side supported by this gateway! Traders will need to move NBT from hitBTC, if they want to trade them for BTC or hope that somebody puts buy side orders there.
This gateway is designed in a way that it can offer NBT at a reasonable price (while stocks last), but won’t actively support the hedging activities of traders.
If Nu risks, say 1,500 NBT and puts them there, it will be at break even from month 8 on.
In other words: even if Nu deposits 1,500 NBT at once, it saves 195 NBT each 30 days compared to modPuddle.
From month 8 on, Nu is better off this way - if hitBTC doesn’t default in between or the funds don’t get lost in any other way.
As modPuddle offered only around 750 NBT on sell side, Nu might do the same with this gateway. That moves break even to month 4.
Test run
NuBot settings from the test run:
test results:
status of mOD sell side only NuBot at Bittrex, hitBTC:
nud getliquidityinfo B | grep BETwD8nSjtj9ADSvej2na34xmsMYwPRymv -A 2
"BETwD8nSjtj9ADSvej2na34xmsMYwPRymv" : {
"buy" : 0.0,
"sell" : 3.0EDIT:
For the record: on 2016-03-23 the NuBot sell side gateway was activated.
