“Imagine you see a cup of coffee selling for $1.79 US. How much will it cost in NuBits?
[quote=“woolly_sammoth, post:1, topic:1921”]
Hedging: Traders might be able to successfully hedge against you. This means that people speculate on the BTC price movement and buy NBT from you at a low price and sell them back to you when the price is high (or vice versa).
[/quote] (extract from post )
Because Liquidity custodians have to use BTC, they are exposed to its volatility and to the risk of losing money in their original primary objective of pegging NBT to the USD.
With bitcoin going down in the foreseeable future, what can we realistically expect of the profitability of the liquidity custodianship on the NBT/BTC pair? see example
Wouldn’t it be time to promote NBT/USD pairs on markets and start to work on them?
Are we not loosing sight of the following primary goal:
This post suggests that NuPool (and probably NuLagoon) could be easily applied on NBT/USD