Current Liquidity

Liquidity
#672

@assistant liquidity

#673

Hi @huafei

The current total liquidity in the Nu network is:

Bid: 57362.4726 NBT (44.21%)
Ask: 72396.0646 NBT (55.79%)

It is broken down in the following manner:


Tier 1:
    Bid: 14653.1564 NBT
    Ask: 24564.9648 NBT

Tier 2:
    Bid: 2908.69 NBT
    Ask: 10205.7357 NBT

Tier 3:
    Bid: 36997.9194 NBT
    Ask: 29873.0 NBT
#674

perhaps we will need to do the opposite with FSRT/FLOT?
to sell them NBT for BTC?
BTER has a really unbalanced sell/buy wall!

#675

I have sent the rest of the btc from the $10k fsrt sent me. I still have like $3 remaining in the polo account, but I started with 2 nbt of my own money, so whatever. I now have level 3 verification on polo, but would kindly ask to be excluded from nubit sales for a little while, hopefully until a motion with a proper contract comes out.

#676

I know Iā€™m trivializing an important issue, but Iā€™m not that concerned with this. Iā€™m paying 10 nbt/day on buy side support, which has about 2500 nbt. This gives a 0.4%/day rate. Yes this is higher than a lot of other pools. However, when you think about how unbalanced some of the other pools get, The bter pools seem to ride the 0.2%-0.4% rate for the more difficult sides of the peg. I am not all that surprised by those rates, especially on bter where we know itā€™s hard to get LPs to deposit.

Do people think there is an actual asymmetry on bter btc/nbt that isnā€™t there on other pools? Meaning, are people more comfortable depositing nbt than btc? If thatā€™s the case, I can try out asymmetric pool rewards like 15 nbt/day buy and 5 nbt/day sell.

#677

I had my concerns about this from the start. Fixed cost is expensive on less popular exchanges. Still not sure whether it is the best way to go and think it is a step back from the Dutch auction method. But we have been here beforeā€¦

Worth trying, interested to see the results in such an experiment on another exchange. I have an asymmetric setup for LiquidBits on the NBT/BTC pair on CCEDK. This assumed that the risk holding BTC is higher than holding NBT. However in times of scarce NBT this had a temporary adverse effect.

#678

Fixed cost helps finding out what compensation rate liquidity providers require for operating on an exchange. If this is considered too expensive, the NSR holders can decide to decommission the liquidity operation on such an exchange.

With increasing NBT adoption at exchanges I think it will become more and more important to distinguish between

  • exchanges that have officially supported liquidity operations, compensated by Nu and
  • exchanges which have a more or less close peg by arbitrage
#679

Say that to my 0.1%/day sell side.

1 Like
#680

OK now some bid side support on bter would be nice.

#681

Not easy.
There are some big sell orders ā€œcoveringā€ buy wall spread, sometimes!

#682

Sounds like cheap nbt to me. Perfect opportunity to buy.

#683

@assistant liquidity

#684

Still think it is expensive as the price discovery mechanism/competition doesnā€™t work in real time as it can and should. Overall Nu Shareholders will pay too much for the liquidity provided. But maybe I should shut upā€¦

#685

How does a dutch auction find price in real time? It requires a user inputted parameter than can only be changed manually. Please donā€™t shut up, I just donā€™t understand in what manner fixed cost is more expensive.

Edit: Iā€™d like to point out that this is an open ended problem with a hundred solutions. Dutch auction is not ā€˜wrongā€™ and fixed cost is not ā€˜rightā€™, they are simply different ways of looking at the same problem. My basic argument for fixed cost is not that it is cheaper, but only that it is simpler from the perspective of the shareholder to assess the cost associated with providing liquidity. (not to mention easier to code)

My bid on CNY is 0.47%/day, so I canā€™t argue that Iā€™m offering high rates sometimes. Let me try to analyze what I think youā€™re saying. Youā€™re saying that the price mechanism tends toward an increase of pool rates in a neutral market (i.e. one where the liquidity providers are not shareholders). In order for that to be true, the liquidity providers would need to collude to reduce the amount they are providing in unison to increase the rate, because Nu will only provide a certain NBT/day to that pool no matter what. This collusion actually sweetens the deal for a third party to the deal to come in and start providing (the collusion has made it easier and easier for new LPs to dominate the pool), thereby again working down rates even with collusion.

Colluding LPs
Now the colluding LPs attempt a strategy whereby they have high rates when alone and drop the rates sharply when another LP joins. The thing is, this is actually a T2 strategy, and highly desired by Nu. The actual NBT/day that those colluding LPs are being paid is the same whether they have promoted a lot of T2 to T1 or not. This gives those LPs the opportunity to properly assess risk and reward of placing funds from T2 to T1, always realizing that if they keep nothing in T1 they lose money.
This collusion is summarized by an announcement, or a defaulting, of the fillfactor parameter.

1 Like
#686

Especially the edits make this post a great read!
I agree that fixed cost makes a lot of things easier and I think the big variance for compensation is due to the smal number of liquidity providers (on bter) combined with ALP bots that refuse to place orders if they detect matching orders - even if they are configured to ignore that.

Fixing a not working ā€œordermatch=trueā€ would change providing liquidity (on bter) a big deal.

So itā€™s not only a different compensation mechanism, but a bot malfunction on a less popular exchange which makes fixed cost look bad.

#687

Is this still not fixed? For a little while our code was out of sync with Sam on this fix, but it should be working just fine now. Please let me know if that is not the case and Iā€™ll take a look at it again.

#688

I might need to update my bot then.
Thanks for the hint!

#689

Buy wall is getting thin. @henry could you promote some BTC to tier 1? @NSRBuyback and @JordanLee beware.

1 Like
#690

i am always ready to exchange NBT for BTC with T4 to help buy side.
:wink:

#691

I checked my NuBot on buy side running at Poloniex.
Itā€™s operational.
In case the Poloniex buy side runs dry and no one can stop it, @JordanLee knows how to bring BTC to market.

edit:

12:27:00.107 [pool-1-thread-1] INFO  - Computing USD prices with sellOffset:0.005$ and buyOffset:0.005  : buy @ 1.0062999999999998 buy @ 0.994 [com.nubits.nubot.streamclient.Subscriber:426]
12:27:00.119 [pool-1-thread-1] INFO  - Actual prices from bitfinex (using 1 BTC = 322.15 USD) : sell @ 0.0031237 BTC; buy @ 0.00308552 BTC [com.nubits.nubot.streamclient.Subscriber:436]
1 Like