[ANN] The Creation Of NuLagoon Tube - Bonus Available Now

NuBits
#1

Dear friends,

After months of hard work, we are very proud and happy to announce that The NuLagoon Tube Goes-Live Today.

Please check our site: http://nulagoon.com ,and have a try. Thank you.

NuLagoon manage team

NlgTube.JPG1211Ă—736 68.8 KB

Tube Address

BTC: 1L67cdWon8zQMp57M4Qxehe5G2EUHJvwKK

NBT: BJDirPFfohpTRXTiTzw8gfZjV9qy3CRqpM

FAQ

  • What is NuLagoon Tube?

NuLagoon Tube is an innovative NuBits and Bitcoin liquidity platform, aiming at providing an extremely easy, low-cost and efficient way for people to access NuBits’ liquidity.

NuLagoon Tube is managed by the very experienced management team who has been managing the first NuBits liquidity pool, NuLagoon Pools, for over 10 months.

  • When & How the exchange price is determined?

The price is fixed to the median of the prices from 5 data providers, including coinbase, bitstamp, coinmarketcap, bitcoinaverage and bitfinex, when the TubeIn transaction was first seen in the block chain by NuLagoon Tube. The TubeOut transaction will be sent after the TubeIn transaction is confirmed (10 confirmations for NBT, 2 confirmations for BTC).

  • What is the exchange spread and transaction fee rate?

The exchange spread is set at 0.2%. The transaction fee rate is 0.2%.

  • What is the minimun amount of TubeIn transaction?

The minimun amount is 100 NBT or 0.2 BTC.

User Guide

  • Step 1:Register an addr pair to the Tube

Send xxx NBT and xxx BTC (please check the magic number from our website) to the Tube FROM a NBT address and a BTC address of yours, then the two send-from addresses will be registered.

  • Step 2:Check live addr pairs

Check Live Addr Pairs to see if your addr pair is successfully registered.

  • Step 3:Exchange coins by using the Tube

Send NBT/BTC to the Tube (the minimun is 100 NBT or 0.2 BTC) FROM NBT/BTC side of your addr pair, then you will receive BTC/NBT by another side of the addr pair shortly.

11 Likes
[Ann] Manual Register Service for NuLagoon Tube Address Pair
#2

Impressive! Will test it!

1 Like
#3

Very impressive!
where the liquidity and site/manage fees come from?
edit: site/manage fee is 0.2%. i read it now.
About liquidity then?

1 Like
#4

If this is to expose tier 3 funds in NuLagoon, it would be better to set higher spreads, also to be compliant with the liquidity spread motion.

#5

You are referring to this [motion](https://discuss.nubits.com/t/passed-motion-to-regulate-spread-values-for-liquidity-operations/2207(https://discuss.nubits.com/t/passed-motion-to-regulate-spread-values-for-liquidity-operations/2207), right?
My understanding is that this is strictly speaking only valid for liquidity operations (T1), which are compensated by Nu.

And the spread

is compliant with that motion.

I don’t clearly understand how NuLagoon Tube is related to NuLagoon and the T1 operation of NuLagoon.
I very much like this shapeshift.io like conversion, though - especially if it provides NBT or BTC users or liquidity providers with a means to convert bigger USD values of NBT or BTC than shapeshift does!

Is my interpretation correct that NuLagoon Tube is tapping in the T3 funds of NuLagoon and tries to improve flow between T1-2 and T3?

#6

It doesn’t make much sense to operate this service using @henry’s own funds at a tight spread without compensation for BTC volatility. Currently it might not be really tapping into NuLagoon (given the small order books), and may be somewhat experimental, but eventually it should.

It should at least use some part of funds intended for tier 1. It is natural to have tier 2-3 funds back up what’s in tier 1. Then if NuLagoon becomes unbalanced, FLOT can help. In such case it is a good addition to Nu’s tiered liquidity structure and a good way to leverage NuLagoon’s infrastructure. Also a good warm-up for BCE-centered liquidity operations.

The motion is not restricted to tier 1, but for all liquidity operations funded by Nu; 0.2% spread is not very well in compliance, in the sense that the operator does not really “ensure liquidity providers are not discouraged to provide liquidity up to … the guaranteed offset” of 0.005 plus exchange fee and liquidity providers are not “given convenient options to take advantage of the guaranteed offset”

#7

This is a t3 proposal, and very much in line with my trusted custodian proposal where I set a 0.3% spread. The spread regulation mmotio fits with this perfectly: t1 custodian buys from t3 at a 0.2-0.3% spread. They are then able to sell for a 0.5% spread after fees, giving 0.2-0.3% profit for balancing the T1 pool. This is ideal, as T4 is very preferred to deal with t3 proposals like this than t1 directly.

2 Likes
#8

The problem is that open-ended trading does not necessarily involve tier 1 ALP participants.

#9

Right, but it doesn’t actually have exchange risk or exchange fees either. All profit is profit for the custodian and/or Nu. So we can lower the spread.
As long as we keep a spread and the custodian is happy doing the work (i.e. minimum Txn size to ensure custodian gets a reasonable fee for the work done) gaming this kind of operation is equivalent to predicting the price feed.

#10

Thank you for pointing out that the spreads in NuLagoon Tube is very low.

Actually, we are expecting Nu communities to be excited about it. That is one of the main goals why we design and create the Tube. NuLagoon Tube is a special designed exchange which is customized for Nu and for Nu only. In it we minimized the exchange default risk, so we can offer low trading spread and ample liquidity.

Can you image someday in future, we will offer 0 spread for Nubits trading at NuLagoon Tube. That is a revolution, which could never be done by the traditional exchange.

Thank you.

5 Likes
#11

This really is genius. Are you running this off NuLagoon’s deposited funds?
So in effect you’re providing double liquidity from a single pool?

#12

Nice one, love the tight spreads! Definitely excited. Almost a competitor for BCE ;-)[quote=“dysconnect, post:8, topic:3220, full:true”]
The problem is that open-ended trading does not necessarily involve tier 1 ALP participants.
[/quote]
Still digesting that one.

#13

The more I work with nu products like the ALP server and NuBot, the more I can begin to see how BCE will work.

With those programs you already have ways to broadcast liquidity, order info, and keeps spreads. I mean we’re almost there. Bundle those capabilities into the basic wallet. And then you add Henry’s piece that stores the linked address info and initiates the exchange based upon certain parameters.

@Henry would you ever consider open sourcing your work? It would benefit the community. Especially @Nagalim as he is trying to set up something similar as a T3 custodian.

1 Like
#14

Send Coin Guide (updated)

To send transactions to Nu Lagoon Tube / Pools, you need to specify the address which you would like to send from. This is a guide for anyone not familiar with it.

NuLagoon recommends Electrum and Nu client to be the Bitcoin and NuBits wallet.

Send Bitcoin in Electrum

Send NuBits in Nu client

  • Step1: Enable Coin Control

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  • Step2: Select Inputs

guide3.JPG858Ă—265 26.3 KB

guide4.JPG833Ă—518 68.4 KB

  • Step3: Custom change address & send transaction

For Nubits:

guide5.JPG858Ă—582 68 KB

  • Trouble-shooting: Strange address recovery

If a strange address is used as the first input address in your deposit transaction somehow, don’t worry. You can recover that strange address back to your control by dump and import its private key in the debug window console.

For Nubits and Bitcoin:

2 Likes
#15

Boys and girls,
do you think it would be beneficial for NU to have very low transaction fees for the Tube (like 0.01%)
and the rest be available via a periodic grant?

#16

Not sure, like a user pays model. The question is whether there is enough Shareholder interest to move some of the trading and T1-T3 balancing of the exchanges to Tube. If so, a fee reduction would be great. Would be interested to hear from the traders amongst us.

#17

It’s definitely a good addition to the ecosystem.

But 0% spread will always be infeasible. A tight spread like 0.2% should take into account many factors; you should make sure that this spread is consistent with your approach to the price feed. For instance, perhaps you often find that the spot prices of the 5 exchanges has a range of more than 0.4%. It’s only possible because Nu pays for the subsidy, but that’s not necessarily healthy. I also expect that, if NuLagoon funds become more exposed to trading than before, the volatility costs would increase even if you set the same spread.

I wouldn’t encourage an open-ended fee reduction, but something that specifically benefits nu. Taking kickbacks from exchange fees can be a source of revenue for Nu - I believe that’s how Tether gets sponsored by Bitfinex. In the long run, if FLOT supplies liquidity as a service to something like the Tube, then Nu should get a cut of exchange fees, or some other form of financial benefit. It might not cover all liquidity costs but will save money.

2 Likes
#18

wow. I had no idea you have been working on something like this! Congrats, this really helps eliminating frictions!

The registration process might be hard-ish for beginners but at the same time will teach them how to use CoinControl.

How does it work under the curtains? Who is the target user in your opinion? Do you plan to generate revenue?

#19

the registration process not good for that only use address of exchanges.

#20

Could you elaborate why you think it’s not good? Thank you.