Gateway with built-in USD reserve

We are facing an interesting conflict between centralized and decentralized approaches - not only in terms of liquidity provision, but in terms of governance as well.

Nu’s liquidity provision isn’t steered by shareholders at the moment.
It’s done by FLOT based on experience and discretion.
Almost all buy side is NuOwned. This is with a different risk than ALP, but remarkably reliable so far.
FLOT is more agile than any shareholder consensus could ever be.
Let’s hope that FLOT decides in the best interest of shareholders.
I say, FLOT is handling this emergency quite well so far.

@shareholders, if you don’t think so, please create corrective motions!

Otherwise be greatful for having FLOT.
You may want to show your gratitude eventually.


FLOT is the CEO of NU elected by shareholders :wink:

Just because some of us act like that (I’m guilty), doesn’t mean it’s wanted that way.
There needs to be a duscussion about that.

Without the speed and tight consensus of such a board, Nu isn’t agile enough in emergencies.
With the discretion of FLOT or some of its members, shareholders don’t have full control.

If you look at how much I do and did (sometimeys even without consensus amongst FLOT members), because I think and thought it’s right that way, some will want to fire me (I’ll survive that, not being paid for most of what I do), others will love me for it.

There needs to be some regulation for it.
@Cybnate and others who demand that are right: a DAO needs governance.
This might be something for the lessons learned session, though.


MoD is our benevolent dictator in times of crises :sunglasses:

Dictators usually fire back :wink: We will be careful…

What can I say, a DAO without one is not a DAO.



I loathe violence :wink:
Which is one of the reasons why I like the Nu network.

I didn’t want to prohibit a discussion or measures, that could and should happen now, with this statement!
Let me make it clear: I encourage all to take the initiative to do it now!

I meant, that I won’t take care of that myself now.
You might not believe it, but I have a life outside the Nu network and try to focus on the things I find more important than others - in the Nu network and anywhere else :wink:

No! I don’t believe it :stuck_out_tongue:

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Maybe you don’t have it in yourself to believe enough?
Maybe I’m a stronger believer than you are :stuck_out_tongue:

I think trade USDT every 15min would be good enough.

@Nagalim’s nubot fork can adjust how big fraction of liquidity is put on order book. The nbt/btc bot can run continuously having only a limited amount of btc on the buy side. The rest btc will be picked up by the btc/usd bot to trade with usd.

I see nbt and usdt prices can differ by several percent.

pybot. Different software entirely, no compatability. However, yes of course it can be run in conjunction with nubot via shell script.

right. i got the name wrong.

I’ve spent some more thoughts on the built-in USD reserve scheme.
It won’t work manually.

If BTC nosedives and a NuOwned operation receives a load of BTC, they need to be converted automatically to USD or USDT as soonas they reach a threshold.

Trying to do that manually will drive you crazy and you will likely be too late. You might find very many BTC and a way lower BTC price, if you just don’t recognize the drop, are asleep, at work, etc.

Plus I wouldn’t want to be responsible for that as operator of a NuOwned gateway.

The thresholds for automatic balancing BTC with USD can be part of the operating mandate and are beyond the responsibility of the operator.
Operators already have a lot of responsibility when dealing with funds they don’t own.
Please don’t put responsibility for volatility on top.

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Do you think it feasible to put together a prototype by running nbt/btc and btc/usd pybots alternately?

Automation would require that both run at the same time and not alternately.

If the operator does it once a day, and btc moved 30% in a day. The worst to happen in my example is the gateway losing 10% x 30% = 3% value than a perfectly automated system. It’s not too bad.

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@desrever, @woolly_sammoth, how much effort is it to create a wrapper for, say BTC/USDT at Poloniex?
In case we are heading towards a BTC volatility hedging strategy, that utilizes USDT at Poloniex to some degree, having NuBot process the conversion would be great.

To make this feasible, some more configuration parameters would be necessary. @desrever, @woolly_sammoth, please have a look here:

Is that (Poloniex USDT wrapper, additional NuBot config parameter) too much effort?

Manual conversion from BTC to USDT (and back if needed) is possible, but there are often not very many $ at a tight spread in the BTC/USDT pair.
Letting NuBot loose for some time would be easier and more reliable.

right. i makes me wonder how tether get that much volume.


If we have a good nbt/fiat market, zero reserves wouldn’t be an issue!
We have to make this nbt/fiat a reality (in big exchanges).

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This is only one part of an improved liquidity provision.
You can’t withdraw USD to FLOT. That means NuOwned operations don’t work at those exchanges, unless there’s deep liquidity BTC/fiat pairs as well.
…how else would you get NuOwned funds into NuSafe?

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Well, this is for the strong puzzle solvers. This thing is that due to the nature of fiat you cannot take it
offline in a decentralized way. This is what NBT and other coins trying to solve!
So, our options are to keep it on line in exchanges (gateways,ALPs) or in Nusafe accounts taking the risk of theft!


btc-e allows btc-e usd to be made into e-vouchers which can be redeemed in many internet wallet/gateway/currency-exchanges.

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