Nu provides liquidity for US NuBits. Buy-side liquidity is low. Faith in Nu and NuBits depends on liquidity of NuBits.
Our actions until now have been to widen spreads, set Park Rates, and sell NuShares, while keeping some buy side funds (currently 39.74 BTC).
Actions that should be taken according to @JordanLee.
- Push all remaining FLOT funds into buy side at tight spread.
- Set appropriate Park Rates.
- Advertise Park Rates.
- Sell NuShares and push proceeds into buy side at tight spread.
- Grant additional NuShares to FLOT. At least prepare the grant.
Nu relies on NuBit sales and NuShare sales for buy-side liquidity now. I assume transaction fee income is currently insignificant?
Park Rates motivate NuBit sales. I’d be glad to have it explained to me other immediate effects.
We may have to dilute our shares. The alternative is to go against how the architect designed the system to work.
We can sell NuShares either by auction or on exchange. Several shareholders seem to prefer auctions. On exchange is simpler and possibly faster. I think we should do both. FLOT NSR may end up deciding when and how unless shareholders speak up. I can’t execute either myself.
Shareholders don’t seem to be in agreement with this being the best approach. There is recent discussion in [Withdrawn] Make Firing and Replacing Incompetent Liquidity Providers Our Top Priority.