Monthly P&L of Nu

Mmhh… in one case Nu sells NBT in the other case it doesn’t? :wink:

Liquidity providing has nothing to do with Nu selling NBT.
Nu sells not a single NBT in @henry’s NuLagoon or all the ALPs.
Nu just incentivizes people placing buy and sell orders.

As NBT are granted for paying the compensation for the liquidity providers and nothing is getting distributed to the NSR holders (there’s no revenue just like there is no spoon in the matrix), this appears as a position on the expenses and not the revenues side.

This is getting philosophical - I appreciate it :smile:
This allegory suggests you can transfer the LPC compensation on the revenue side if one changes one’s perspective and realizes some truth (trust in NuBits?)

Not really, rather getting for the accounting department!

Should assets total the liabilities plus the equity in the balance sheet? :wink:

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To help bring clarity to the topic at hand, $5769 was spent in August on development and marketing out of my budget. This includes the portion of NuBot development not charged to B&C Exchange and core client development but does not include marketing done by Cybnate or NuDroid development.

I had mentioned several times that we were quickly cutting expenses down to below $10,000 per month on average. I’m proud to say we have accomplished that while still delivering 2.0 and beginning development on 2.1.

In order to accurately calculate P&L better visibility into tier 4 liquidity is needed. I have pleaded quite publicly for the administration of those funds to be taken over by others. It isn’t the best use of my time and I am sure others can do a better job. As such, I’m more interested in finding ways to incentivize others to do the task than I am in spending more of my time improving how I do it. Accordingly, I am composing a motion intended to facilitate the transfer of these funds to others, which should also make efforts to calculate P&L easier.


Attempt to evaluate the P&L of Nu in Sep 2015

I have created a Google Excel Sheet.
Please find my evaluation in the following Google Excel Sheet:

The unknown values are:

  • tx fees
  • paid interest rates (this suggests that 3k have been freed. So some interests have been paid.)
  • development expenses
  • marketting expenses

Any suggestions are welcome.

We are at least in 13135.87 NBT in the red since tx fees are negligible.
If the development expenses and marketing expenses are comparable to Aug 2015,
my calculation suggests we could be 20k NBT in the red for Sep 2015.

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If you also record the change in the NSR marketcap for Sep 2015 and compare it to this number, it would be instructive for me. We’re hoping for not only green (NSR>NBT) but that the market cap grew many times faster than NBT. Then we know we’re on the right track, we want to make sure we’re growing as we grow our debt.

Best estimate I have for this in august is a negative marketcap change of something like 200K compared to the 13k NBT (by the way, I’m only seeing a $5k increase in NBT market cap between august 1 and september 1). So august was bad for us. However, September is looking well depending on how we choose to look at the 200K price spike at the end of the month.

Or at least include the share buyback funds. It was $2506 by estimate.

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I am supposed to track the revenues and expenses each month here.
But since printing NBTs increases Nu’s liabilities while bringing revenues, it is true that it is difficult to uncouple P&L from Assets/Liabilities.
So I agree. It makes sense to track the market cap of NSRs and NBTs and the change month by month.
I will add such fields and start filling them.

Those 13k are not newly printed NBT for the most part. So it is natural that they do not increase the market cap.

The buy back occurred in Oct. So I will include them in the Oct settlement.

EDIT: the sheet is updated

Especially in times of the current high Nubits volume, I would really like to know whether it is possible to derive a reliable number that can be understood as profit? Is there any simple way to get a rough estimation, like a % of trading volume or anything?


To really understand something as profit we need to see the long term effects. For now perhaps we can look at the the increase in buy side funds. I guess more than 10k NBT were sold for BTC which were then put in tier 4, so that can be considered revenue.

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good question

Nice concrete measure

Attempt to evaluate the P&L and Assets/Liabilities for Oct 2015

I have updated the spreadsheet.

  • tx fees
  • paid interest rates
  • development fees
  • maketing fees
  • Tier4 btc

Overall, Nu is more in the red than in September 2015 at least by 3.5k NBT.
Assets have increased at least by 850k NBT.
Liabilities have increased by 13k NBT.

Any suggestions welcome.

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What about BTC spent on buybacks?

That should be reflected into the decrease of Tier4 assets and increase of NuShares market cap.

Why do you have nbt sold as 0?

Any update? I’d support a fee paid to @cryptog to maintain P&L info, which is basic accounting requirement of any serious company.

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I’d expect such a role to take over the buyback excel sheet as well.

Let me think about it.

I would support paying @cryptog a fee too for the accounting


I have added Nov 15 and Dec 15 P&L evaluation attempts.

I ve realized that evaluating operational expenses is easy to determine because the definition is clear but evaluating sales is difficult because the nubits you sell once can be bought back later and put back into sales once again.
So at the end of the day you need to evaluate the balance: the difference between the nubits out (brought in) and nubits in (brought back) from Tier 4.
It is too difficult to track manually.
I think the best is to have an idea of the operational expenses each month while looking at the assets (NSR, reserves) and liabilities (outstanding nubits)
The NSR buybacks calculation is key for determining the assets.
Therefore I think we cannot determine how much revenues we generate.
Instead we should determine how much reserve we have at the end of each month.
What do you think?

[Monthly P&L updated]

By the way, I ve attempted to created a monthly sales sheet here.

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