right. i got the name wrong.
Iâve spent some more thoughts on the built-in USD reserve scheme.
It wonât 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 donât recognize the drop, are asleep, at work, etc.
Plus I wouldnât 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 donât own.
Please donât put responsibility for volatility on top.
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. Itâs not too bad.
@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 wouldnât be an issue!
We have to make this nbt/fiat a reality (in big exchanges).
This is only one part of an improved liquidity provision.
You canât withdraw USD to FLOT. That means NuOwned operations donât work at those exchanges, unless thereâs deep liquidity BTC/fiat pairs as well.
âŚhow else would you get NuOwned funds into NuSafe?
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.