if there is no buyback and transfer funds to stable reserve, the change of (dynamic reserve - outstanding_NBT) is a good indicator of revenue in a given period. There are sources of random fluctuations because btc in gateways are not counted and nbt in gateways are counted as outstanding. keepers of gateways only send funds back once in a while, making the funds shown again in the buyback calculation.
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Very true. So there is reason for these features. Gateways are risky operations, and they are already counted in T1-3. When they (or other operations) shut down, our T4 operations grow while T1-3 shrink. This is basic protocol during a recession, to tighten up and pull back money into the core. As for stable reserves, they are also ongoing operations and are not usable for daily liquidity balancing, so buying them is like putting money in a safe.
Im not sure there is a cureall for boiling down the entire ecosystem.
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What would be the meaning of this quantity.
I feel it is very difficult to define Nu revenues.
It is much easier to have a sense of assets and liabilities.
Perhaps we should only look at the buybacks every month to have a sense of profits.
Perhaps the identity Profit or Loss = Asset - Liabilities (I discard the equity part that I do not understand) could be used.
Asset = NSR market cap + reserves
Liabilities = Outstanding nubits (circulating)
EDIT: Maybe we can use change in (dynamic reserve - outstanding_NBT) + buybacks
Liquidity ops sell and buy nubits. nubits get consumed in tx fee and get burned for whatever reason. They all get folded in to changes of outstanding_NBT. Changes of outstanding nubits is an accurate account of changes of Nu’s liability. If there is no buyback or transfer funds to stable reserve, then the change of dynamic reserve is the change of circulating nubits, which is an accurate account of Nu’s asset due to operations (not including share price changes). So the change of (dynamic reserve - outstanding_NBT) is an accurate measure of asset minus liability change.
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The best way to do this would be to require each operation that bridges T4 with T1-3 to report a particular straightforward version of profit and loss and simply sum across operations.
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