FLOT NSR Operations (buy side)

Good point, I don’t know what I was thinking.

A note to FLOT members:
I’ve updated the OP with a link to the Cointoolkit which contains the redeem script to make creating NSR transactions easier.

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I think non-overlapping members of the NSR group can also share some of the work load of the NBT group, such as creating transactions, even if they can’t be signed. Especially if a deal can be struck with certain parties to do regular transactions then anyone can create a transaction at any time. I considered creating an other NBT group but that wouldn’t be any better than a big 3-of-8 multisig group (which however isn’t in fundamentally bad).

Likewise for the NBT group to help the NSR group.

@CoinGame, can you please make the OP wiki style as well?

Dear fellow NSR FLOT group members,
as the recent balancing efforts drained the BTC reserves to 82 BTC and considering the next balancing transaction I proposed will reduce the reserves 35 BTC, I want to start discussing an NSR sale.

I’m aware that there’s $30k in NuSafe.
I intend to use some of those funds as well for two reasons:

  • it’s was NuSafe was made for - being a stable reserve; let’s use it as such
  • to test the process of releasing funds from NuSafe

I’d like to convert half of NuSafe funds to BTC.
This is still not sufficient to fill the buy side reserves to an appropriate level. Even cancelling NuSafe wouldn’t be sufficient.

Close to $30k BTC are in @zoro’s and my Poloniex NuBot accounts (which are due to the exchange default risk not considered reserve):

Mon Apr 18 07:22:03 UTC 2016
status of mOD dual side NuBot at Poloniex:
nud getliquidityinfo B | grep BFGMPykfKxXZ1otrCZcsbnTwJjKHPP9dsP -A 2
        "BFGMPykfKxXZ1otrCZcsbnTwJjKHPP9dsP" : {
            "buy" : 15726.22,
            "sell" : 15463.6728
status of zoro dual side NuBot at Poloniex:
nud getliquidityinfo B | grep BJs4YbtaqCmxeHLiR6zzjnZEotYVFAPfMo -A 2
        "BJs4YbtaqCmxeHLiR6zzjnZEotYVFAPfMo" : {
            "buy" : 13511.04,
            "sell" : 12875.1682

@Cybnate’s PyBot operations have no BTC left:

@mhps might be able to support a precise calculation using the NSR buyback calculator.
My gut feeling tells me that we are at least $40k short.
If we take $15k form NuSafe, we need to get another $25k from NSR sale.
At current market rates that a sale of approximately 8 to 10 million is necessary to fill the gap (provided it’s not bigger than my gut feeling tells me).

I’m open to take all $30k from NuSafe, reducing the NSR sale to $10k, equaling 3 to 4 million NSR.

While I appreciate comments from every FLOT member, shareholder and forum member, I’m especially interested in the point of view of @Dhume, @ttutdxh, @cryptog, @mhps, because they are involved in the FLOT NSR group or NuSafe.

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This is very difficult period for NU. The imminent reduce of BTC generation can drive speculators to
buy as much BTC as they can expecting its value to skyrocket (if ever).
We need to think how we can move the gateways’ buy walls to the max spread just before the value
that is considered the “lost peg” value, for a few months at least!

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My NuBot Poloniex gateway is already at a big spread, because it’s designed literally a gateway of last resort:

Moving the gateways’ spread doesn’t replenish an empty reserve!
Replenishing it is the reason why I made my last post.

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Still BTC funds on Bittrex

Erm, well… 4.7 USD in BTC is not what I consider “funds left” in this context.
But you are right in the way that it’s not 0…

They are 4.7 BTC!

I’d rather see an NSR sale and higher park rates before we use up the remaining BTC. I also prefer that NuLagoon put some BTC on Polo rather than the Tube during this time, at a high enough spread (like 1%).

There is a motion up for voting that would make consensus around nsr sales. We have also instituted park rates, which will trigger an nsr sale in a few weeks if that mentioned motion is not passed. FLOT shouldnt have to think too hard about when to sell nsr. When to sell the NuSafe contract is another question.


I misinterpreted that output.
Should’ve looked in the broadcast liquidity…

Nusafe should be used when BTC price crashes, or when BTC in T4 runs dry.
Parking should be used before NSR sales.

That is what I think.


I agree. I think we should first use parking rates before selling nsr. By buying time, we may get through a temporary nubits demand slump to reach a point where we have a significant demand. That significant demand would make us sell a significant number of nubits, to replenish our btc reserves which would be way higher than the nubits we would have to pay as interest.

Ok, the BTC reserve is dwindling rapidly and the park rates don’t rise (not to speak of the parked NBT).
What now?
Wait until no BTC are left?
I get back to sleep in that case.
Wake me once the peg has been lost.

I have suggested effective park rates in the park rate thread.

Special run of the calculator:

Nushares buyback calculation as of Mon Apr 18 14:50:41 UTC 2016
"blocks" : 837172,
Total NBT = 1291595.1329

FSRT multisig
Balance of BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC is 0 NBT
FSRT singlesig
Balance of BFTnCyMX1nsTNp6X7Bcm1qVocvShdbwtMi is 151500 NBT
JordanLee singlesig
Balance of B5Zi5XJ1sgS6mWGu7bWJqGVnuXwiMXi7qj is 150000 NBT
JordanLee singlesig from liquidity ops
Balance of BT9AWq9r1i6kghZc6LtrvNb2wRFh7JLCdP is 36553.054 NBT
FLOT 3-of-5 multisig
Balance of BqyRzFtWXDmjxrYpyJD42MLE5xc8FrB4js is 174918.2896 NBT

Total NBT in circulation is 778623.789300 NBT.

Tier 4 Funds

Tier 4 buy side funds controlled by FLOT
FLOT 5-of-8 multisig old
Balance of 3QDWJ2yqJ5iTUg6cSpAwxx95ba3NG97hzG is 0 BTC
FLOT 5-of-8 multisig new
Balance of 3HikFkS2Zinab1TJq7dqp6wSPyLu7i7bhe is 82.67297541 BTC
Tier 4 buy side funds controlled by JordanLee 59.8 BTC
NuSafe has $30000 for T4, but not included for buyback pool calculation.
FLOT 3-of-5 multisig Peercoin
Balance of pM68K72BBa2KX7Kj2qY5jgTB3AmCUKFQmV is 0.89 PPC

bitfinex BTC mid price is 429.465 USD
btc-e PPC average price is 0.001 BTC

Tier 4 buy side funds total 142.472975 BTC, 0.890000 PPC, and $30000.000000, valued $91187.538608 (212.328219 BTC)

Of the 778623.789300 NBT in circulation, 15.00 percent (116793.568395 NBT) plus NuSafe are reserved and excluded from the share buyback calculation (341.805661 BTC).

212.328219 - 341.805661 = -129.477442 BTC in the share buyback pool.
The Standard is 5.00 percent of this, -6.4739 BTC (~ -2780.30 USD)

Pool is not positive. There will be no NSR buyback or PPC reserve filling next week.

We are $50k in the red.

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Thank you for your efforts!

So my gut was not that far off.
Even if we emptied NuSafe, we would still be $20k short.
The question should rather be how to sell NSR than when or how many.

What about inverting NSR buybacks and buying NSR at the market?
@Nagalim would you be available as executor?
Based on not yet passed motions we’re in an area in which selling $2.5k NBT were considered appropriate.

Or is doing a blind auction preferred?

Just one remark:

will change soon.
47 BTC are being transferred to NuLagoon Tube in exchange for approx. $20k in NBT.

I am standing by ready to jump in with Nusafe when needed, I do feel park rates should be the first option and I don’t understand why they haven’t been raised yet. If park rates fail to prove successful in increasing demand we should start selling NSR. Nusafe funds can be accessed on fairly short notice so I don’t feel we’re already at the “emergency” stage that warrants draining the funds without shareholder vote. However if there is a clear consensus for starting to drain funds now I would comply.

Edit: After the next tx is signed there should be about 35 BTC left in FLOT multisig and roughly 60 BTC held by Jordan + Nusafe right?

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