Current Liquidity

I think many are seeing the sudden rise of Bitcoin as a pump and they might hedge the expected dump of Bitcoin with NuBits by now. It is good to see some renewed traction on BTER we haven’t seen for a while, hope that is a trend. We need some arbitrage though as we have lot’s of NBT to sell on other exchanges. It may not be worthwhile as mentioned by Nagalim elsewhere before (too lazy to link).

So this time, the rise of BTC is caused by Chinese buyers? Will we see something similar to Oct 2014?

indeed -->

it seems it would be a nice way to “burn” some nbt into cny. but then those cny should be either "burn"
into usd or btc in bter :slight_smile:

edit: if my calculatios are correct, if someone has CNY in bter it could be easier to buy NBT and then with those NBT to buy BTC! We can provide more BTC liquidity than the direct BTC/CNY pair!
This NBT cycle could be profitable for NU? @Nagalim, @masterOfDisaster

edit2: no, cycle is not possible, BTC/CNY has low liquidity! I am answering my self :smiley:

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the issue is that BTC/CNY * CNY/USD != BTC/USD
I address this issue here, along with the solution:

Let me explain. If we sell all our NBT for CNY, we could certainly get it at a higher price than if we sold it for USD. But then what do we do with the CNY? Well, we could try to distribute PPC dividends, but PPC tends to sell more expensive for CNY than USD, so we’d be right back where we started. We could try buying BTC for tier 4, but then again, BTC sells more expensive for CNY than USD.
The most efficient thing we can do is use the CNY for tier 1 liquidity or adjust the price of CNY/NBT. I propose we allow custodians a greater belly for their orders (high tolerance) and they will close in on the correct price themselves. I’m excited to see how this works with the parametric order book. CH-NBT will also help us solve this problem, as long as we don’t try to peg CH-NBT to US-NBT without proper thought about the price.


After a rough estimate it seems we have paid over 51k in custodial funds for liquidity. Less than 30% of that was given to pool operators, so over 35k went to interests. The difference between sell-side and buy-side is smaller than that, which is a bit surprising considering other custodians have also cashed out their NBTs.

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Right you are talking about the liquidity provision rewards. At the beginning, I thought parking rates.

Why do you think that they cashed out? I am curious because this is also my assumption but I do not know for sure although it is likely since they have expenses to recoup.

But if they did cash out and assuming also that the contractors have cashed out, the buy side liquidity should be decreased by 20k if the expenses bleeding pace is the same as last month.

See below:

However, this is does not take into account the new arrival of buy side liquidity brought by new custodian’s money.

Right now the liquidity is: {“blocks”:576497,“buy”:99419.3192,“sell”:99569.9931}

Pretty much the same on both sides.

I do believe that fresh buy side liquidity is counterbalancing the cashing out.
However, custodians provide liquidity the same way to both sides, buy and sell side.
So new liquidity should not be able tofill the gap. (it should keep the difference created by the cashing out).
From there, we can infer that there is more liquidity being brought to the buy side liquidity.
In that situation, this is because the sell side would be overcrowded (too much competition which causes the rewards to be too low) and custodians are attracted to the buy side which offers more rewards.
But this works only in a fixed costs ALP scheme.
From what I understand, there is only one pool (NuPond on NBT/BTC) that adopts that scheme.
So its effect should be negligible on the overall liquidity.

So probably there is more demand for NuBits right now because traders are wary about the decrease of bitcoin after its recent rise, which would be behind a natural market force filling the gap, taking nubits from the sell side to the buy side?

@assistant liquidity

Hi @cryptog

The current total liquidity in the Nu network is:

Bid: 110098.8743 NBT
Ask: 114930.8065 NBT

It is broken down in the following manner:

Tier 1:
    Bid: 62372.0453 NBT
    Ask: 55665.4049 NBT

Tier 2:
    Bid: 1990.89 NBT
    Ask: 11617.8579 NBT

Tier 3:
    Bid: 24929.157 NBT
    Ask: 26589.0 NBT

more buy side than sell side.
i suppose it is because btc is stabilizing or most pools have shited to Fixed Costs?

By the way, Bid and Ask should be interchanged in:

Bid: 110098.8743 NBT
Ask: 114930.8065 NBT

This is the opposite displayed by QT.

Can someone confirm?

only one pool has shifted to fixed cost (NBT/BTC on Bter). The impact of fixed cost currently is less than 10,000 NBT. Also, the fixed cost pool isn’t doing amazingly well right now. I would venture that it has more to do with NuLagoon having a balanced tier 3 and NuPool doing well.

do u know the reason why?

The buy side is sitting at the same rate as all the other alp’s, so it’s not doing poorly it’s just not as balanced as I would prefer. I like the way it makes me think though, as far as how to build the most stable peg.

the buy side is mostly determined by Poloniex. during btc rising, buy was 10k and sell 40k. now buy and sell are 20-25k. the other pools are almost the same before and after btc rising.
fixed cost pool in bter will work as intended only if more than 1 “big” custodians “fighting” each other.
if it is only 1 “big” custodian, then increasing his/her amount will not change dramatically the payout rate.
So yes, we need a mixed fixed reward-cost pool scheme :wink:

@assistant liquidity

Hi @huafei

The current total liquidity in the Nu network is:

Bid: 79702.3239 NBT
Ask: 67468.8112 NBT

It is broken down in the following manner:

Tier 1:
    Bid: 27104.7362 NBT
    Ask: 40232.6049 NBT

Tier 2:
    Bid: 3578.37 NBT
    Ask: 5885.0237 NBT

Tier 3:
    Bid: 27152.439 NBT
    Ask: 28569.0 NBT
Exchanges poloniex
Monthly interest rates    7.199999999999999%
Max ask rate   0.24 % per day
Max bid rate   0.24 % per day
Current ask rate   0.24 % per day
Current bid rate   0.24 % per day
Ask order target  4693.98 NBT filled of maximum 20000 NBT ( 23.47% )
Bid order target  6923.21 NBT filled of maximum 20000 NBT ( 34.62% )

200% to 30%…

Interesting indeed. Someone withdrew 20-25k from sell and buy side. See also reduced sell/buy side in client. Maybe a local bot failure?

Nupond fixed cost pool is paying ~ 0.12% for NBT/BTC. Maybe shareholders should require every pool to go fixed cost for at least 80% liquidity.

poloniex’s behaviour is the same every time btc is volatile :slight_smile:

@assistant liquidity