Current Liquidity

Liquidity
#652

I warn people here that the sold NBT may come back quick and hard on the buy wall if traders’ sentiment on the BTC price changes (which it often does). Breaking the peg on the upside is bad, but it is much much worse on the down side when people can’t sell at $1.

I suggest those LPs who bought NBT from FSRT or Jorddan keep the proceeds for a week or two – sorry if it’s a liability – to be ready to sell back to traders. This may cause an accounting challenge to the fund FSRT and Jordan distributed to many LPs but are ultimately responsible for. So those LPs should keep a record of how many are sold/bought, which can be a challenge if using a mixed account and there are rolling funds.

In general I think Nu is in unsailed water so I suggest err on the safe side and don’t fret too much if the sell wall is off once in a while. IT’s normal if a new product is sold out because the company that makes them hasn’t get everything streamlined. That is life for the buyers.

4 Likes
#653

@henry it is definitely a good idea to have tier 3 sell side restocked. Could we exchange 15,000 NBT? Right now 6,000 would be required on the Poloniex sell side to balance it. Can you bring that to Poloniex after a trade? If so, FSRT will stop selling NBT for the time being.

#654

If you look at the currnet liquidityinfo, you will see the sell side liquidity is greater than buy side liquidity among all the three tiers. We have no idea about why you said 6,000 NBT is required by Poloniex.

01:24:54 getliquidityinfo B

01:24:54
{
"total" : {
"buy" : 51568.0537,
"sell" : 75640.0064
},
"tier" : {
"1" : {
"buy" : 12692.4482,
"sell" : 21058.8563
},
"2" : {
"buy" : 4185.12,
"sell" : 9073.786
},
"3" : {
"buy" : 30755.4312,
"sell" : 37755.0
}
},
#655

I think @FSRT relies on https://alix.coinerella.com/walls/ for decision making about T1.

#656

I agree

Seconded too

#657

That is correct. With less than 4,000 NBT for sale at Poloniex, there is still an immediate need to bring liquidity. The offer to sell for $0.97 for Poloniex liquidity still stands. @henry can NuLagoon assist?

#658

There seems to be a discrepancy between getliquidity info and https://alix.coinerella.com/walls/

But I agree that Tier 1 is arguably balanced.

I also feel the discount price 0.97 offered by FSRT is reckless - the difference is equal to more than 10 days of Tier 1 liquidity provision. If around 35k NBT were sold at this price, Nu would have just lost more than 1000 NBT, enough to support the entire FLOT for 1 month. This is poor accounting and a poor incentive design to get people to work for the interests of the broader body of shareholders.

I have said repeatedly that the lack of interest isn’t because the NBT is too expensive at 0.99 or even 1.00, but rather the people you reach here aren’t the best people to sell NBT to. During times of NBT demand, there’s usually an excessive amount of BTC in liquidity pools. LPs have an incentive to switch to NBT at the standard price = 1.00 so they can earn the full interest and want to reduce their exposure to BTC. If those can’t be reached, there’s NuLagoon. If you want to deal with a crisis, @nagalim’s approach may be preferred.

I strongly discourage FSRT and FLOT in engaging in these discounted sales of NBT in the future. This will be reflected in an amendment to the FLOT charter in a future motion. If more liquidity needs to be brought into Poloniex, I will offer to do something similar to @nagalim, and I have higher withdrawal limits on Poloniex, and I can even put up a BKS collateral.

1 Like
#659

I am trying to incentivize medium to large liquidity providers and others in our space with relatively deep pockets to give this a try. It is the kind of thing that can be a little intimidating the first time, while seeming easy the second time. Comments from NuBit buyers lead us to believe lack of sell side liquidity on Poloniex has significantly impaired sales.

Nagalim has been very helpful, but we are talking about the network extending credit with this approach, and that isn’t positive. Ideally, the network should never extend credit.

The sell side on Poloniex is currently below 4,000 NBT. We are still looking to sell.

#660

Wondering how many nubits are in the wild now (that might request immediate buy back) and how many btc/ppc are in Tier4…to back those nubits…

#661

I am afraid we have to clarify that NuLagoon uses Nu client’s liquidity info as official informations to make decisions, and NuLagoon have to manage its funds according to the rules which has been published and approved by Nushareholders. We will only buy more NBT from Tier4 when total sell is less than total buy.

#662

I still have 9000 nbt, it is only not on the wall when my bot does stupid things.

#663

An additional 5.9 BTC was received for 1991 NBT. The trade was agreed to nearly a day ago, but just finalized.

The last trade we initiated was with Nagalim around 20 hours ago.

Because the walls are balanced, we are not selling NBT at this time.

The lowest price at which NBT was actually sold was $0.990.

1 Like
Demand based liquidity
#664

Order book liquidity is nearly 50:50 right now. Great job everyone!

4 Likes
#665

According to Coinerella 15 minute figures, network wide sell side is less than 38%. Poloniex sell side is only 17% of that market. Therefore, we are seeking to sell NuBits to someone who will make them available at Poloniex. @henry can NuLagoon assist at a price of $0.994?

1 Like
#666

1626 NBT have been sold for 5 BTC. Because liquidity hasn’t yet balanced after crossing our threshold for sales 15 hours ago, we are still selling for $0.994.

1 Like
#667

@assistant liquidity

#668

@assistant wakeup

{
   "time":1448042015,
   "blocks":623125,
   "total_buy":61460.1116,
   "total_sell":67639.2696,
   "tier1":{  
                    "buy":17150.686,
                    "sell":19816.4498
        },
   "tier2":{  
                    "buy":3015.46,
                    "sell":10197.4557
        },
   "tier3":{  
                    "buy":36700.9661,
                    "sell":29873
        }
}
#669

Wow… how big is the next buyback going to be??!
I’m eager to find out.

1 Like
#670

Would be easy to guess if the T4 BTC address were known…

1 Like
#671

2500 NBT was sold for 7.6148 BTC. With the sell side at 47%, we will stop NBT sales now.

1 Like