NBT/BTC market and future NBT centric trading

NuBits
#1

We recently opened our NBT exchange, we decided to use NBT as the currency and price BTC in NBT. We feel this is more natural since most people know BTC in terms of USD. We also feel it has the added benefit of demonstrating the usefulness of NBT.

https://exco.in/exchange/NBT/BTC

We would like to open many more new NBT pairs, essentially treating them as USD markets.

If you have any questions or suggestions please share them.

NuBits Markets, and Why They Are Important

We are proud to announce that we have been working with NuBits developers to add a peggedNuBits (NBT) market to our exchange.

If you have not yet heard of NuBits, it is best described as a cryptocurrency that has a stable value of 1 USD. This value is maintained by a decentralized autonomous corporation built around a clever implementation of the PeerShares project. The NuBits infrastructure is maintained in a decentralized manner by the Nu community, who has built bots to maintain the price of NuBits at 1 USD on all participating exchanges.

A different approach

Our implementation took longer than others because we requested something special, our request required changes to Nu’s pegging bots:

Rather than pair NBT to BTC, giving it an awkward ~0.00321 BTC price, we decided to price BTC in NBT. Since NBT is pegged to the dollar, the price of Bitcoin will be familiar to anyone knows the USD price of the Bitcoin price. (Current price at the time of writing this is 328 NBT per BTC.)

We plan to continue adding more NBT markets, trading it against BLK, PPC, and NSR, with more expected in the future.

One of our primary reasons for opening this exchange is perfectly described by the NuBits team:

Specialized exchanges allow trading of various digital currencies, but there are problems.
If traders on these exchanges believe the value of their holdings will go down, they will sell their digital currencies for fiat money such as US dollars. The traders then need to either hold the fiat money on an exchange (which can be a target for theft) or withdraw the funds (which can be slow and inconvenient).
NuBits eliminates this frustration. Traders can purchase NuBits as a stable hedge rather than liquidating their holdings to fiat money. These NuBits can then quickly and easily be transferred off exchanges into private wallets. NuBits makes trading digital currencies easier.

—NuBits official page

In practice this allows users to trade against USD while maintaining the technological benefits of cryptocurrency.

We believe this is a revolutionary advancement in cryptocurrency trading.We encourage everyone to read more about NuBits and NuShares to learn more about decentralized autonomous corporations and how the people behind NuBits are using one to maintain a peg in a decentralized way. We will be writing more about Peershares and decentralized autonomous corporations in future announcements.

Full Announcement Regarding NBT Market:
https://blackwavelabs.com/

9 Likes
#2

Thanks for doing it, this approach attests the capability of innovation of NuBits and Excoin.

Along with this announcement, I also started operating a 20k LPC operation on that pair (as announced here). I invite everybody to try and pick up some nubits from there, to get used to this new pricing and new liquidity. NuBot logic had to be adapted and will be released in 0.1.5, earlier next year.

There is an important note : not only the pricing system changed (prices are expressed in NBT instead of BTC), but also …

the way liquidity is offered through the orderbook is swapped.

Sell-side liquidity is offered via buy orders (offering to buy BTC for NBT).
Buy-side liquidity is offered via sell orders (offering to sell BTC for NBT).

Liquidityinfo in the client is prepared for this changes and reports are displayed correctly.

Regarding adding additional markets we read :

We plan to continue adding more NBT markets, trading it against BLK, PPC, and NSR, with more expected in the future.

At this regard, it might take a while before we are able to provide trading bots for crypto pairs different from BTC, as it will require big changes in the way we provide liquidity. Please refer to this (long) ongoing discussion . However, this doesn’t mean you can’t open the pair without a bot operating on it : it will be a very interesting experiment to see if arbitrage will work well enough to maintain the peg without needs of bots and liquidity.

4 Likes
#3

It’s not that complicated. I never quite find a way to understand what is “sell side / buy side” for the bots but I have just placed an order at exco.in nbt/btc market and it was very easy and intuitive to use correctly. So I see no need to stress this obscure technical difference and leave confusion to users who don’t actually have to care.

#4

The difficulty is less for the exchange users and more for any Custodian systems we’ve developed using the (previously only) modality of what “sell/buy” meant.

2 Likes
#5

It’s not complicated at all, especially for users that trade nbt via the website. As Ben said, it makes a difference for shareholders looking at the buy / sell liquidity.

#6

Besides the importance for the wallet data feed, I think it is very important and refreshing from a marketing perspective. Having NuBits nominated as the base currency and BTC as the commodity is priceless in my opinion.

6 Likes
#7

Oh, now I see it clearly

#8

We opened a NBT/BLK market today. I would be interested in officially providing liquidity if the community feels it is fair for me to provide liquidity on an exchange I’m part owner in.

#9

Can I assume that when you say officially that you are intending to be a custodian and raise a proposal in the near future?
I don’t have an issue with exchange owners providing liquidity, I’m only wondering whether it is useful to provide liquidity on this pair. There is some debate whether liquidity provision goes over stability. Personally I think we should focus on providing liquidity to support stability, but I’m all ears if there is an interesting business proposition.

1 Like
#10

Yes, I meant with the intention of becoming a custodian. However, I agree with your later points about the pairing being not as important as others currently.

#11

I think the criteria for allowing a pair to become official are

  1. Will there be a risk of significant loss f fund (if the custodian candidate cares)
  2. if the answer to previous question is yes, is the market on the pair is liquid? If it is not, compared with the liquidity proposed to be provided, then there is risk.
  3. If the custodian candidate asks for a custodian fee, is the liquidity to be provided worth it?
  • It seems that @Excoin never mentioned taking a loss to be an issue.
  • If @Excoin does worry about taking a loss, we will see if blackcoin is very liquid. I think it is.
  • So @Excoin, are you going to ask for a fee?
#12

I’m not worried about taking a loss, I’m more interested in learning about the process, participating in the community and bringing more interest to the pair so it can eventually sustain without assisted liquidity.

I wouldn’t need a fee.

4 Likes
#13

Then I will vote for your motion. Spread the love (of nubits).

#14

I have already started providing liquidity for NBT/BLK.

It would be helpful to have more NuBits on the exchange to allow people to enter the market.

#15

Having a BTC pair denominated in NuBits is a big improvement over denominating it in Bitcoin. I applaud your work. It makes sense to use it as a replacement for USD. I am also glad to see other NBT pairs. Right now it is difficult to offer properly priced NBT liquidity on coins with low liquidity such as Blackcoin. However, I have presented a plan to change that here:

It will take us a number of months to implement the plan, but once we do I believe that not only can we replace USD on exchanges, but BTC as well, by offering better liquidity than is currently available on USD and BTC pairs. Please take a look at this liquidity provision plan and vote for it if you feel it is appropriate. I’m quite convinced it is both important and the right way to promote NuBits right now. I will explain in the coming days that it is not so difficult to implement as some have suggested. Currently only about 40% of votes are in favour of the motion.

3 Likes
#16

More than the 20k already provided on the NBT/BTC pair?

#17

Well currently the liquidity is provided on the NBT sell side. So users with Nubits can easily and confidently liquidate their NBT for BTC at 1 USD each. However we only have 117 NBT on the site so people interested in trying out Nubits by buying some are out of luck.

#18

I just added 200 NuBits of personal funds on the sell side. I also asked other custodians and Jordan if there is some NBT liquidity available to help.

1 Like
#19

Thank you, we really appreciate it. I will let people in the BLK IRC channels know there is now some available.

#20

It looks like that has already been bought up. If anyone is interested in providing additional NuBit liquidity we could use it.