Supply, Reserves, and Equilibrium (superseded by automation)

Liquidity
#165

I agree with you. I do not think that parked nubits should be regarded as a real supply decrease for very short periods. But we could remove from circulation say half of the total supply (350000) for 1y at 0.1% interest rate. Then we would really need to issue new nubits which would lead to plenty of buy backs. Also, that would trigger buyback immediately.
And overall that would be sensible.

#166

Can you find out for what total duration NBT are being parked?

#167

v0.8.2 show totalparked nbt but do not use in calculation. add nud else case.

Nushares buyback calculation as of Sat Apr 30 01:02:00 UTC 2016
Total NBT = 1297114.6332

Uncirculating Nubits

Total NBT in circulation is 739190.813600 NBT.

Tier 4 Funds

bitfinex BTC mid price is 454.985 USD
btc-e PPC average price is 0.000985 BTC

Tier 4 buy side funds total 101.082715 BTC, 0.000000 PPC, and $30000.000000, valued $75991.119271 (167.018955 BTC)

Of the 739190.813600 NBT in circulation, 15.00 percent (110878.622040 NBT) plus NuSafe are reserved and excluded from the share buyback calculation (309.633553 BTC).

167.018955 - 309.633553 = -142.614598 BTC in the share buyback pool.
The Standard is 5.00 percent of this, -7.1307 BTC (~ -3244.38 USD)

Buyback pool is not positive. There will be no NSR buyback or PPC reserve filling next week.

Park Rate Voting
#168

It must be possible. I will be in transit in the next 1.5 days.

#169

To trigger a buyback then a dilution, the parked nbt would need to change by 700k to force the standard to go from +2.5k to -2.5k (5k/0.05/0.15=666k). Also, the park rates go down as the standard approaches +2.5k (at least in theory), so this attacker is parking for smaller and smaller rewards. Their best attack would be to wait for Nu to suffer, then park a bunch all at once at a high rate. However, this is precisely what we want them to do! To wait and park when we’re in trouble, they have to buy a bunch of nubits while our economy is going into a recession, thereby helping us out. Well that’s not really an attacker at all!

This is basically the buy slow sell fast (bssf) attack from my perspective. There are more efficient ways of manipulating Nu, namely to target the ALPs.

#170

@mhps I now hold a total of 126.04 shareholder BTC. FLOT may request a transfer if they wish.

3 Likes
Timeline of events related to the peg break 2016
Current Liquidity
#171

v 0.8.3

Nushares buyback calculation as of Fri May 6 23:44:37 UTC 2016
blocks":863102
Total NBT = 1317832.0683

Uncirculating Nubits

Total NBT in circulation is 764908.258700 NBT.

Tier 4 Funds

Tier 4 buy side funds controlled by FLOT

bitfinex BTC mid price is 461.345 USD
btc-e PPC average price is 0.000925 BTC

Tier 4 buy side funds 178.252915 BTC, 0.000000 PPC, and $30000.000000, valued $112236.091260 (243.280173 BTC)

Of the 764908.258700 NBT in circulation, 15.00 percent (114736.238805 NBT) plus NuSafe are reserved and excluded from the share buyback calculation (313.726688 BTC).

243.280173 - 313.726688 = -70.446515 BTC in the share buyback pool.
The Standard is 5.00 percent of this, -3.5223 BTC (~ -1625.01 USD)

Buyback pool is not positive. There will be no NSR buyback or PPC reserve filling next week.

2 Likes
[Draft] Shareholder Pledge
#172

So far there is no information on the distribution of park period for the parked fund.

#173

Core bitcoin reserve contains 178.252915 BTC valued at $82,236.09

764,908.26 NBT in circulation - $30,000 in NuSafe = 734,908.26 outstanding NBT
15% of this is 110,236.24 NBT

82,236.09 - 110,236.24 = -$28,000.15
5% of this is the Standard:
-$1,400.01
As this is under $2,500 magnitude, there will be no NSR action this week

2/3 of the standard is -$933.33
As this is under $1,000 magnitude, there will be no PPC action this week.

Current Liquidity
#174

Will change to this after [Passed] Outstanding Nubits passes. currently the calculator gives a more conservative result (circulating - 15% - nusafe )

#175

Sure, it’s the same either way (no market action). I just wanted to post the example for the future. Specifically the peercoin stuff.

Besides, are we counting sharedays or not with motions? There’s no protocol change needed.

#176

@mhps as a result of these liquidity operations, I now have 26.04 shareholder BTC in my possession.

#177

This calculation is done without any change from [Passed] Standard and Core which passed in the last week. The numbers presented in this calculation will be used to discuss standard-and-core implementation.

v0.8.4

Nushares buyback calculation as of Sat May 14 00:32:12 UTC 2016
blocks":873809
Total NBT = 1317838.267

Uncirculating Nubits

Total NBT in circulation is 742015.019400 NBT.

Tier 4 Funds

Tier 4 buy side funds controlled by FLOT

bitfinex BTC mid price is 456.16 USD
btc-e PPC average price is 0.000905 BTC

Tier 4 buy side funds 131.743468 BTC, 0.000000 PPC, and $30000.000000, valued $90096.100322 (197.509866 BTC)

Of the 742015.019400 NBT in circulation, 15.00 percent (111302.252910 NBT) plus NuSafe are reserved and excluded from the share buyback calculation (309.764672 BTC).

197.509866 - 309.764672 = -112.254807 BTC in the share buyback pool.
The Standard is 5.00 percent of this, -5.6127 BTC (~ -2560.31 USD)

Buyback pool is not positive. There will be no NSR buyback or PPC reserve filling next week.

1 Like
#178

The following would be how buyback/refill calculated according to [Passed] Standard and Core Please check.

Circulating NuBits (CN) = 742015.019400 NBT
BTC target (BTCTR) = 15%
reserve target = CN x BTCTR = 111302.25291 NBT
reserve velocity (BTCV) = 5%
The standard (ST) = reserve velocity x (T4BTC - reserve target) = 0.05 x (T4BTC - 0.15 x CN)
= 0.05 x (131.743468 BTC x 456.16 USD/USNBT - 0.15 x 742015.019400 NBT)
= -2560.31

ST < -2500, sell |ST| amount ($2560.31) of NSR

T4 reserve in PPC (T4PPC) = 0
PPC target (PPCTR) = 5%
PPC velocity (PPCV) = 10%
PPC threshold (PPCTH) = $1000

auxiliary reserve flow (F) = (PPCTR / BTCTR) x (PPCV / BTCV) = (5%/15%)x(10%/5%) = 2/3

PPCTH x F = $1000 x (2/3) = $666.67

Since ST(-2560.31) < -(PPCTH x F), sell (F x ST = -1706.83) amount of PPC (oops we don’t have any PPC)

Peercoin standard (PPCST) = PPCV x (T4PPC - PPCTR x CN) = 10% x (0 - 5% x 742015.019400) = -3710.075097

PPCST is not > PPCTH($1000), there is no selling PPCST amount of PPC

[Poll] 100% Reserve Required for NuBits?
#179

Two things: firstly, the outstanding nubits motion passed and will keep us under nsr dilutions this week.

The standard is -$2560.31+(0.15×.05×30k)=-$2335.31
No dilutions will occur this week.

Secondly, you did the ppc stuff wrong. Ill explain when i have some spare time.

Crap, I messed up the motion. It’s supposed to be PPCTH/F not PPCTH*F. The idea is that you take the standard and multiply it by the flow. Then you compare that to the threshold and if it’s bigger you take that modified amount to market. As is it doesn’t really make sense.

We should be bringing $1556.87 worth of ppc to market if we had any. This is over the $1k threshold.

#180

when? in [Passed] Outstanding Nubits it still says voting. the explorer has been down.

No one checked when voting.
Will be traveling. Get back to this later.

#181

https://alix.coinerella.com/panel/#

Are you counting share days? I’m not a fan of counting SDD for motions. Anyway, alix doesnt really say if a motion has passed or not, so honestly i dunno.

Is it just me or is it a real issue that we can’t figure out if a motion has passed or not?

#182

Well, if you want to do it by RPC, you have to test a lot of rolling windows.
Or you parse the blockchain systematically for it (and note the block at which the motion passed; that can be verified by RPC easily) - I don’t have the skill to do that.
What I’m trying to say is: it’s not just you…

#183

By block 862642 both motions were passed in voting and SDD. This was on Friday May 6th over a week ago. Therefore, I will press forward my standard (-$2335.31) as the official correct one for this week.
http://blockexplorer.nu/motions/success

3 Likes
#184

Check the following -

this would be how buyback/refill calculated according to [Passed] Standard and Core

Circulating NuBits (CN) = 742015.019400 NBT
NuSafe=30000
Outstanding Nubits = CN - NuSafe = 742015.019400 - 30000 = 712015.019400 NBT
BTC target (BTCTR) = 15%
reserve target = Outstanding Nubits x BTCTR = 106802.25291 NBT
reserve velocity (BTCV) = 5%
The standard (ST) = reserve velocity x (T4BTC - reserve target) = 0.05 * (131.743468 * 456.16 - 106802.25291)
= -2335.31

ST < -2500, sell |ST| amount ($2560.31) of NSR
ST > -2500 There will be no NSR buyback.

T4 reserve in PPC (T4PPC) = 0
PPC target (PPCTR) = 5%
PPC velocity (PPCV) = 10%
PPC threshold (PPCTH) = $1000

auxiliary reserve flow (F) = (PPCTR / BTCTR) x (PPCV / BTCV) = (5%/15%)x(10%/5%) = 2/3

PPCTH / F = $1000 / (2/3) = $1500

Since ST(-2335.31) < -(PPCTH / F), sell (F x ST = -1706.83) amount of PPC (oops we don’t have any PPC)

ST x F = -2335.31 * 2/3 = -1556.87

Since (ST x F) < -PPCTH, sell -(F x ST) = -1556.87 amount of PPC next week (actually since ST < 0 so there is no selling.

Peercoin standard (PPCST) = PPCV x (T4PPC - PPCTR x CN) = 10% x (0 - 5% x 742015.019400) = -3710.075097

PPCST is not > PPCTH($1000), there is no selling PPCST amount of PPC

edited according to [Revision] Standard and Core

1 Like