Lack of commitment to liquidity is our biggest threat now

#62

Having T1.1 at <1% (maybe even much lower), T1.2 at >1% makes sense.
But I’d like to put the weighting upside down: 25-40% on T1.1 (ALP), 60-75% on T1.2 (Nu funded bots).

Those who are in a hurry to trade big amounts of NBT may pay a price for that (buying/selling into the T1.2 orders).
A considerable amount of liquidity is always available at a low spread.

This way Nu can provide a tight spread by decentralized liquidity operations (ALP) while providing backup (that actually might compensate big parts of the costs by the spread) through Nu funded liquidity operations.

Just for the record: T1.1 can be provided by Nu funded operations, but that is a different matter.
This is an attempt to evaluate that: [Passed] Dual side gateway at hitBTC by masterOfDisaster

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#63

Glad to see more and more talking about the revenue, but sadly Nu has little revenue now.

If Nu is in short of profit to pay for the LP, situation is very serious. Then let’s take some drugs, several years ago, my mind was blow off when reading an article about the internet porn industry, saying (in 2006)

General pornography stats
Every second 28,258 users are watching pornography on the internet
Every second $3,075.64 is being spent on pornography on the internet
Every second 372 people are typing the word “adult” into search engines
40 million American people regularly visit porn sites
35% of all internet downloads are related to pornography
25% of all search engine queries are related to pornography, or about 68 million search queries a day
One third of porn viewers are women
Search engines get 116,000 queries every day related to child pornography
34% of internet users have experienced unwanted exposure to pornographic content through ads, pop up ads, misdirected links or emails
2.5 billion emails sent or received every day contain porn
Every 39 minutes a new pornography video is being created in the United States
About 200,000 Americans are “porn addicts”
All sites in the world, 12% of porn sites, which means that there are about 24,644,172 pornographic websites. According to Google’s advertising services, Double-click statistics, traffic and data traffic porn sites is extremely impressive, before the global unique visitors 500 sites, dozens of pornographic Web site. In all search engine requests, and one-quarter are related to pornography, in all Internet downloads, more than a third of all pornography. The world’s largest monthly visits porn sites Xvideos is staggering 4.4 billion. Users on pornographic websites far more than the residence time of the residence time on the news page, because the porn sites tend to offer more video.

No, this is not moral, but if Nu is really in need of revenue, just contact them because that industry is very fond of new technology.ie New technology Pioneer! Below are the new technologies supported by this industry and become popular finally.

Broad Band internet access( 1990s to 2000)
Online Payment (in mid 1990s!)
Online streaming media player(2000s)
O2O (online to offline)
VR (now!)
Porn also promoted the development of the hard disk industry. The first use of porn sites or spam, pop-up ads, malware, browser hijackers, and other technology, domain name hijacking “pioneer.”

I don’t know whether it’s legal in some big countries, but this is the last resort before Nu starving to death. Reasons are below

1)People browsing this kind of content usually want to be anonymous, any leaking information of ID, email address etc is joyless.

  1. Some people may not view such content for months, but still need to pay fee monthly. What they want maybe just pay for what they are interested.

  2. Website owners are among the most new tech welcomer.

  3. People usually don’t care much about the price(1$ vs 1.1$)when they find a favorite video.

So we can just develop a browser plugin that connect to NBT wallet, so that whenever customers wanna get content, just click the mouse and payment done for specific content. Of course, we may negotiate with the website owners that 3-5% of payment is destroyed by default.

Is this the potential big revenue for Nu?

1 Like
#64

And don’t forget that once BitBay is pegged, Bitcoin investors hedging their profits by converting to BitBay will cause the volume to skyrocket!
What better way is there to do that now? Nubits has issues.

From: https://bitcointalk.org/index.php?topic=1456464.0

Can anyone verify this rumor?

#65

For the record - the rumor is here:
https://bitcointalk.org/index.php?topic=1456464.msg14802728#msg14802728

#66

That is ok as long as not everybody is selling NuBits at the same time, which is the case.

Example:
at one point in time, one whale buys 1m NBT when 1BTC=1000NBT, (Nu gets 1000BTC)
Several others buy 6m NBT. (Nu gets 6000 BTC)
Then at another point in time, the one whale sells back 1m NBT when 1BTC=400NBT.
The other several whales do not sell back (Nu gives back 2500 BTC, so Nu needs to take 1500 BTC from the 6000 BTC which is fine)

Right now we have say 100k of buy side liquidity but with 700k NBT in circulation.
We should be already dead if every holder sold back.
But we re not because not everybody is selling back at the same time.
Have you ever wondered why?
It s strange but oddly enough it is a fact.
This is why a fractional reserve works and this is why we can make revenues.
And this why I do not see how Tether can make any revenues significantly because it is 100% reserves backed.

Nu should be very profitable because of its very fractional reserve, because we do not need to be able to buy all NuBits in circulation at the same time.

I disagree. Liquidity should create revenues, much more than tx fees.

#67

How?

#68

Quantifying the bottomless nsr reserve is not an easy thing to do. To call us a fractional reserve implies our nsr reserve has no value.

#69

1） Nu can be attacked intentionally by suddenly dumping lots of NBT bought long before and spreading the rumor Nu is insolvent. Of course, Nu need to be worthy of such attack at first. :slight_smile:

  1. Partial reserve is OK as long as Nu has sufficient revenue to pay for liability in relative short time period. However, if Nu has little revenue or gambling on btc price, it is ponzy scheme. Cannot last long.

The more NBT nu sell, the more liability(NBT)and asset(BTC), it’s hard to predict whether profit is more or less.(depending the btc price changes)

Directly keeping BTC from selling NBT as PROFIT, equals to zero basic accounting knowledge at all. If Nu shareholders are confident magician who can make money from nowhere or play NBT<–>NSR shifting, let them continue, I’ve already quit.

#70

Balance Sheet Attacks

Essentially, if someone bought NBT long before then they are most likely an ally not an attacker. Even if they are an attacker, their attack is basically just loaning Nu money, so it’s not too difficult to repel with just some good liquidity to absorb it.

There is a concept here of an individual owning a large portion of the NBT debt. As we have developer funds and B&C has some NBT, owning a large portion ends up being in the hundreds of thousands. This is a big number for an attacker to use. Not impossible, but it’d have to be quite coordinated.

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#71

exactly.

#72

So Nu sends a message to the freemarket

Customers, if all of you sell NBT, I will die! And if you are late in selling NBT while others do it earlier, you have empty hands!

OK, what an exciting message! Great potential of bank run. Bad thing will happen if Nu use up its fund and provide less liquidity. High risk tendency customers may use NBT temperorily, but low risk tendency customers(like me) don’t buy NBT at all.

Where are the financial reports for Nu company in 2014 and 2015? No one knows the cash flow, liability-asset balance? Is this the way you running a company? The blockchain based transparent company?

#73

I mean, i am in the process of making a shareholder pledge that literally says that shareholders will keep attempting to pay off their debts by diluting at a constant rate of 25mil nsr/3month. You are strawmanning Nu, it’s very easy to call a system flawed when you ignore the solutions staring you in the face.

4 Likes
#74

Sorry, what I said in 16 May becomes truth, I cannot believe it.

#75

The solutions starring me in the face…

#76

So Nsr are fiat shares?

#77

@Nagalim, I am losing patience seeing nushareholders losing money for more than one year, endless expenditure on liquidity providing and even waste money on buy back, that’s the reason I wanna fire anyone who will likely do same thing for B&C’s operation because I feel it compulsory as a responsible BKS shareholder.

But I am not against you personally, just a business.

1 Like
#78

We should dilute now.
I am ok up to 1b nsr as originally planned.

1 Like
#79

Use direct NBT/NSR to dilute, don’t use NSR/BTC then BTC/NBT.
Tell the exchange that Nu in emergency, please provide NSR/NBT pair and we perform debt-equity transfer directly at a fixed rate such as 1NBT=800NSR , this may stop NSR price decline further.

If there are pegging attackers in this event, they either have to become nushareholers or loss money because NSR is the only thing they can exchange with NBT.

7 Likes
#80

This week there has been no nsr dilution.

I argued for blind or dual side auctions.

2 Likes
#81

We tend to think @Sabreiib 's suggestion regarding NSR NBT convertion is a good one.

1 Like