Originally written by @CoinGame .
https://daology.org/u/coingame/articles/8fe7550299d217e17fcb0a8f84c01f0edb64d4ce
Very interesting because it could increase drastically Nu profits.
Right now liquidity provision is still not profitable.
The users for this service are traders that have access to our peg almost for free. Hopefully it would change with the parametric order book.
If liquidity provision reveal itself to be a profitabe biz for providers, then it will encourage more providers to participate, thus increasing demand for nubits, which eventually means more sales for Nu.
But this service is aiming at traders.
Cryptocurrency users are not only traders.
This NuBits cost API would make pay users when they use a Web service beyond a certain free limit.
This would be a huge opportunity to diversify and expand our services.
We can speculate that the market for such users is much bigger than the mere market for traders.
Therefore we can speculate that cost api provision would bring us more sales than liquidity provision.
Of course things are more complex.
Such cost API would work only if NuBit peg is well kept, which assumes thay Nu has a decent liquidity.
