My understanding is that this is even more far away from the terms and the intention of the NuBot gateways.
But as @JordanLee didn’t request the NBT nor FLOT, they are still on my account and I can use them in the sell side gateway if the liquidity situation gets dire. At the moment there’s close to 30 BTC on sell side and over 30 BTC equivalent on buy side within the allowed spread:
That would mean the NBT end up at sell side while I receive BTC? What about this:
I read this as implicit agreement to short the buy side and the sell side gateway; or more clearly: to use the NBT traded by the buy side gateway and make them available for the sell side gateway without sending them to @JordanLee just to get them sent back to the NBT deposit address of my Poloniex account.
I really think that Nu needs to consider a combination of providing liquidity with funds owned by Nu and funds by liquidity providers who get compensated for that.
The disadvantage is exposure to exchange default etc. (we all know why we wanted to get rid of that).
But not having liquidity operations with funds owned by Nu leaves Nu with no direct way of steering liquidity volume.
The advantage of doing it is to have direct control over T1.
The compensation to incentivize providing liquidity needs some improvement, before it can be considered reliable.
Blocks & Chains Exchange will change the game completely, because it’s possible to provide liquidity with funds in Nu property with no bigger risk than holding them in multi sig addresses (which FLOT already does).
Meanwhile (before BCE is live and before the incentives to provide liquidity have been adjusted) it might not be the worst idea to provide a kind of “volume floor” on supported exchanges with Nu funded operations (not the compensation, but the funds). The floor just needs to be enough to keep the peg.
Or in one sentence: if there’s nobody providing liquidity at an officially supported exchange (for whatever reason), Nu should at least put [insert number here] USD value on each side.