This has been touched upon in the past but it looks too cumbersome.
• 0.5.1 :
◦Futures markets integration
Interesting. I have not noticed it until now. Not sure if it deals with something similar as what is talked about here. I was talking about this post.
But in the roadmap, what I think is going to contribute directly to the reduction of bitcoin’s volatility exposure is
Parametric liquidity distribution models (configurable)
Market-aware liquidity distribution models ( adaptive )
because those features would limit the amount of NuBits that traders would have access to for protecting themselves from volatility, in my understanding.
Ok perhaps I’m missing something, but why could BCE not integrate fiat pairs…
If we can develop the USD ecurrency integration:
There should be a way to hook this into BCE for those who are willing to be market makers for fiat.
I know all of this is nebulous code right now. But it should be possible? Not immediately, but eventually…
There must be a way to store fiat currency in multisig addresses so signers can control the release of the fund, in order for BCE to work.
The signers, like in any escrow, has to keep the fiat fund before releasing, not just the payment token (e.g. Perfect Money e-Voucher numbers), to prevent double spending.
I guess using APIs of fiat e-wallets (e.g. Perfect Money ) it could be done.
B&C Exchange could be used to trade with funds held off supported blockchains, such as bank wires or cash. It would just utilize the escrow features mentioned in the design paper that are expected to be developed after the initial functional release.
What do you mean by “automated hedging” ?
Yes, the link you provided is correctly pointed
I’m not a trader, so this isn’t really my area, but what Pennybreaker said in that thread seemed to make sense to me. Rather than expecting people to hedge with these futures contracts themselves, couldn’t we automate it so that liquidity providers don’t even need to worry about it? They would break even as Pennybreaker suggested, but they would still collect the full interest from the pool. Nobody seems to be doing this though, maybe because it seems too complicated. Here is what Pennybreaker said about making it easier by automating it…
Would this be possible to do so that liquidity providers are no longer exposed to volatility? Maybe it could be made optional for those who still wanted to take the risk.
That suggests BCEx can integrate fiat, bank account and manh other money services in itself thanks to the escrow.
How long do you see Nu’s liquidity being dependent on NBT/BTC over the coming months and years?
In other words, what is your view on the part of liquidity provided by NBT/BTC over the total liquidity (cryptos pairs and FIAT pairs)
Right now, liquidity depends on bitcoin FIAT exchanges that price BTC against the dollar, which enables Nu to price NBT against the dollar, but do you expect that we would see NBT FIAT exchanges (Ex: Coinbase sells NuBits) soon or not?
Perfect, I just wanted to make sure we were talking about the same thing. Terminology can be ambiguous, we should find better vocabulary : Bot operators should “hedge” as in protect themselves from BTC drops , because traders uses NuBits as a “hedge” to exit Bitcoin when they fear drops.
Is this what futures market integration means on the NuBot roadmap? Still not clear on that. Just wondering whether something like this was already planned.
Yes, that is down along the roadmap
Up to $84,938 in trading volume for the past 24 hours, with eight different exchanges showing NBT volume.
9th 95,858 usd