Backbone Reserve Operations (Tier 6)

jooize 2016-12-17 22:39:47 UTC #261

2016–12–17

New policy applied.

Two simple liquidity operations guidelines under consideration

They are prefaced on the reserve equilibrium concept: that there is an optimal reserve level (50% at zero money supply and 25% at 2 million USD and above, with linear reductions as we move from zero to 2 million USD money supply). The guidelines govern how we move toward equilibrium. Here they are:

Move 1% toward reserve equilibrium each day. Let us suppose we are $45,000 below equilibrium. $450 in NuShares should then be sold each day and placed in tier 1 to tier 4 reserves. As we move closer to equilibrium, the open market operation decreases in size, as it should. The rule has symmetry regarding buybacks and sales. If we were $45,000 above equilibrium, then $450 in NuShares would be purchased (for burning) each day.

Immediate NSR sales to meet a minimum reserve of 20% of reserve equilibrium. At last count, equilibrium reserve was $70,579. This means if our total T1 and T4 reserves do not equal or exceed $14,116 (20% of the equilibrium reserve figure), NSR should be immediately sold on the open market to restore the minimum reserve.

I didn’t provide the latest money supply count yesterday, so @Phoenix hasn’t had time to do the latest calculation. I will use last week’s numbers for today (with today’s reserve numbers).

Circulation: 146,524.37
Reserve percentage: (50 - 146,524.37/80,000) / 100 = 0.4817
Equilibrium reserve: 0.4817 * 146,524.37 = 70,580.789029
Minimum reserve: 0.20 * 70,580.789029 = 14,116.1578058
Current Tier 1–4 reserve: 12716.7435 + 2475.2607 + 2372.88 = 17,564.8842
Move to equilibrium: 0.01 * (70,580.789029 - 17,564.8842) = 530.15904829

Minimum reserve is met.

530.1590 USD in BTC: 0.6703

NSR sold: 2792916.66666666
BTC acquired: 0.66862425

BTC Poloniex @jooize → Poloniex Gateway @jooize

jooize 2016-12-18 15:15:10 UTC #262

2016–12–18

Minimum reserve is met.

533.1382 USD in BTC: 0.6767

NSR sold: 2819583.33333333
BTC acquired: 0.67500824

BTC Poloniex @jooize → Poloniex Gateway @jooize

jooize 2016-12-18 19:21:38 UTC #263

2016–12–18 Logs

jooize 2016-12-19 18:04:57 UTC #264

2016–12–19

Minimum reserve is met.

533.1382 USD in BTC: 0.6734

NSR sold: 2927826.087
BTC acquired: 0.67337946

BTC Poloniex @jooize → Poloniex Gateway @jooize

jooize 2016-12-20 03:39:27 UTC #265

2016–12–20

Minimum reserve is met.

533.1382 USD in BTC: 0.6745

NSR sold: 3065909.09090909
BTC acquired: 0.68163453

BTC Poloniex @jooize → Poloniex Gateway @jooize

jooize 2016-12-21 14:13:22 UTC #266

2016–12–21

Circulation: 147,110.50
Reserve percentage: (50 - 147,110.50/80,000) / 100 = 0.4816111875
Equilibrium reserve: 0.4816111875 * 147,110.50 = 70,850.0625987188
Minimum reserve: 0.20 * 70,850.0625987188 = 14,170.0125197438
Current Tier 1–4 reserve: 17771.4940131 + 2524.80746219 + 2448.00 = 22,744.30147529
Move to equilibrium: 0.01 * (70,850.0625987188 - 22,744.30147529) = 481.0576112343

Minimum reserve is met.

Move to equilibrium in BTC: 0.5888
NSR sold: 2944000

BTC Poloniex @jooize → Poloniex Gateway @jooize

jooize 2016-12-22 18:39:56 UTC #267

2016–12–22

Circulation: 147,110.50
Reserve percentage: (50 - 147,110.50/80,000) / 100 = 0.4816111875
Equilibrium reserve: 0.4816111875 * 147,110.50 = 70,850.0625987188
Minimum reserve: 0.20 * 70,850.0625987188 = 14,170.0125197438
Current Tier 1–4 reserve: 14159.32733077 + 2711.11486764 + 2586.81 = 19,457.25219841
Move to equilibrium: 0.01 * (70,850.0625987188 - 19,457.25219841) = 513.9281040031