Fund the creation of a NuBit based cryptocurrency exchange with the following features:
Sells NuBits for $1.00 of any cryptocurrency (no exchange fee for purchasing NuBits). It may be best to only exchange NuBits for cryptocurrency initially, since dealing with USD involves tricky regulations and greater costs. USD based markets can be safely mirrored on this exchange without having to worry as much about an attack on USD (as opposed to a cryptocurrency).
Purchases NuBits for $0.99X, with an exchange fee that is less than $1.00 - $0.99X. This allows room for private buy side liquidity providers to profit, while still offering a very small spread.
Decrease X in order to increase the incentive for private liquidity providers; increase X in order to decrease incentive for private liquidity providers. With substantial volume, this could become an attractive and competitive source of profit for liquidity providers.
Mirrors trusted cryptocurrency / USD exchanges, and has a verification period before finalizing a transaction in order to protect the exchange from various attacks. During the verification period, the exchange waits until a mirrored trade successfully executes on another exchange (or set of exchanges for a major purchase). This allows traders to purchase from any exchange (or set of exchanges) that are integrated and trusted. As a result, it would afford traders the ability to get the best available price with sufficient liquidity to satisfy their order.
Such an exchange could decrease NuBit liquidity costs while substantially improving the utility and convenience of NuBits for trade. It would allow us to effectively mirror trusted markets with far less risk and cost. Even relatively vulnerable cryptocurrencies could be exchanged for NuBits safely. For example:
- Imagine someone attempted to simultaneously sell a large amount of a vulnerable coin for USD while also buying a large amount of NuBits with the vulnerable coin.
- The exchange would wait until it could sell the vulnerable coin for USD before executing the order.
- Since the exchange would be unable to sell most (or perhaps any) of the coins for USD, it would not execute the order.
Once perfected and profitable, such an exchange could potentially be decentralized.
This would also pave the way for further advancement (NuPay, NuLoan, NuBank, NuWage, NuGames, NuMessage, etc).