Diversify the cryptoasset reserve


#1

NuBits’ cryptoasset reserve (tier 1–4) is currently kept only as Bitcoin. Nu should diversify into other assets, primarily Ethereum (ETH), but anything is possible. I would like you to argue for different assets and the target proportion of each.

Just to get discussion started, you may suggest:

  • Bitcoin 80%, Ethereum 20%
  • Bitcoin 70%, Ethereum 25%, Peercoin 5%

…or minor holdings in promising coins, such as Storj 2% and Zcash 1%, though it is unlikely we’ll have administrative capacity for more than one addition at this time.

We need trading strategies for the assets. Actions will be executed by the team, and markets move quicker than motions. By my analysis, it is a good time to diversify into Ethereum immediately. Maintenance of the cryptoasset portfolio in terms of when to trade between assets needs to be clarified.


B&C shareholder reimbursements
#2

A post was split to: B&C shareholder reimbursements
Post was for 95% off-topic and warranted its own thread.


#3

A central node controls many assets? When will you apply decentralized LP?

FLOT is the wrong decentralized way, my suggestion is the right decentralized way.

I guess few people would discuss with you, because all of us are very disappointed about the architect’s IQ.


#4

We may have to explore the new generation of assets coming up like Iconomi and PeerAssets (Indicium) or something like Coincube. When there is a good match on the portfolio it would save the weekly maintenance of the reserve as the fund will take care of that. Even better is probably to have both eventually to spread risks. More funds like that will likely follow soon.

Another alternative is what we have done a while ago:


There are costs and risks associated with that, but we have seen it work.

Personally I would prefer the liquidity pools on USD/NBT pairs as Sabreiib mentioned over something like NuSafe or FLOT but liquidity pools also have a lot of maintenance. The reason I prefer that still is that it would be more decentralised assuming the pools operate on different markets.


#5

25% BTC
25% Bitcoin Cash
50% USDT

The above breakdown would only be needed until liquidity operations are finally decentralized and then LPC’s can decide their own breakdown.

I chose USDT to limit exposure to BTC price swings. This will be unpopular because some may fail to realize that the only reason Nu is ‘successful’ at this time is due to Bitcoin’s recent price surge. The “liquidity engine” is not the reason for our success.