I say that with 10-15% of liquidity in T1 and the same order of magnitude in reserve (in normal situations), there’s neither enough reserve nor sufficient speed moving funds around to deal with BTC going haywire if you have no last line of defence that stands.
The only solution I can think of is one I created in in January this year. I didn’t aim at creating it, it was rather an evolutionary process that included trial and error and was made in many iterations.
I don’t want to repeat it all, a lot of it is buried here in the thread.
e.g. Current Liquidity
If you want to follow the development, read this thread and posts in [Passed] NBT EXIT gateway on Poloniex provided by @masterOfDisaster and [Passed] NBT EXIT gateway on Poloniex provided by @masterOfDisaster
This was the result:
I ended at spreads of 1.8% and 3% for the two gateways.
A part of it is the case and from what I can tell, Nu was reacting fast until the BTC reserves up to tier 4 were depleted. Actions like activating NuSafe and preparing NSR sale (in addition to the one required by “Standard and Core” motion) have been initiated.
We are already quite fast considering that we need consensus at some places. It would be faster with responsibility being less distributed. We distributed the responsibility for security reasons. If we find room for improvement, I’m all ears.
I try to make the story short. I’ve already written too much in the last hours.
I’ve learned that the peg can be supported by gateways (and of course other operations) at an increased spread.
A lot of the trading on exchanges seems to be done by bots, which just don’t buy outside a certain spread.
If we don’t want to rely on that, we need to have funds on the order book at that increased spread.
If anybody for whatever reason wants to buy/sell NBT in the NBT/BTC pair, there are those orders at an increased spread.
As long as they last, that buys us time to replenish T1.1 while still keeping the peg, albeit on a degraded level.
I dare say: without the NuBot by @zoro at an increased spread, it wouldn’t look like this:
This NuBot traded a little more than $3,000 in Bitcoin since I last had a look:
Sat May 28 06:48:58 UTC 2016
status of zoro dual side NuBot at Poloniex:
nud getliquidityinfo B | grep BJs4YbtaqCmxeHLiR6zzjnZEotYVFAPfMo -A 2
"BJs4YbtaqCmxeHLiR6zzjnZEotYVFAPfMo" : {
"buy" : 5833.54,
"sell" : 15194.3455
It would have been empty on buy side since long ago, if it were operating at <1%, just as NuLagoon and all other operations are:
The exception seems to be Bittrex.
@Cybnate, I don’t know how much of the reported liquidity there is from your PyBot (running at 1.4% spread, right?).
I beg you to increase the spread of this PyBot to at least 2.x% if you want the funds to last.
This pretty much sums it up:
