[quote=“ttutdxh, post:67, topic:3163, full:true”]
DR reserves combined value is, as a maximum value, the difference of buy side from sell side:
If that difference is lower than DR contracts, that difference have to be recreated by DR contractors buying directly from sell side and burning or putting up orders on buy side (by using NBT entry gateways set at less than 1 USD for example). Their debt will be adjusted accordingly. If that is not possible (DR contractor default), the contract is finished.[/quote]
Does this mean you now want to limit DR to the difference possible in sell and buy side? Since that changes the whole proposal. This also means that DR in this light is limited in how big it can get, does that mean you are not proposing to use DR for the full 15% reserve? I have to think about examples since this is complete overhaul of your earlier proposal.
Secondly I want to address your point in the Demand based liquidity topic, you state:
[quote=“ttutdxh, post:67, topic:3163, full:true”]
But what about buy side? To fulfill an imaginary demand? A lot of people could be putting together millions in buy side orders just bellow 1 USD because they realize that buying NBT for less than that is always a wining trade. Does that mean that demand have increased? No, it just meant more people are aware of a profit opportunity, but they will immediately sell the NBT at more than 1 USD (probably at another exchange walls) to make their profit.[/quote]
For as far as I’m aware liquidity is only counted as what is reported by the pools. So only the funds actually earning interest and being placed by Nubot are being counted as liquidity. Someone placing a 100k buy Nubit order below or even at the same price as our buy walls is not being counted towards the liquidity, or used in the 40% criteria. For as far as I’m aware that is. Order placed outside of Nubot are not relevant for our liquidity calculations.
Arbitrage should not work as we maintain the same prices across exchanges using the same bot.
[quote=“ttutdxh, post:67, topic:3163, full:true”]
I only know one definition of burning,
Are you aware of https://docs.nubits.com/rpc-api/#burn?[/quote]
Yes this is also my definition, maybe I misinterpret but as I understand it that means burned Nubits are gone forever and no longer count towards the calculation of outstanding Nubits.