NSR pools?

[creon]

Hi,

since most of our liquidity in the pools comes from NSR holders right now, why not make an NSR pool that pays NSR as compensation instead of NBT? This way we could transform some of our liquidity cost into NSR dilution, which is anyway needed in the coming months.

EDIT: To clarify: This pool still supports the NBT peg, it is just the payout that changes to NSR.

Technically this will be trivial once we have the NSR grants. I really would love to know the state on this (@sigmike), and if there is just no time for this right now then this is fine, but then I can also take a look if you want - it doesn’t sound like a difficult feature to me since the NBT grant mechanism is there, but I might be wrong about this.

Shareholders, would you provide your liquidity for NSR?

[Nagalim]

How is the price feed determined? Is this operated like NBT/BTC? Is this a pegging operation, or are we allowed spreads? Will the pool fee match the volatility? (clearly not as that would have to pay out a huge amount)
To be clear, I am all for this and think it is our natural place rather than NBT/BTC. I just think the parameters need to be well defined and I’m not sure we’re there yet.

[creon]

Wait, the pool provides NBT liquidity, we are only talking about the payout and the grant for the pool operator.

This payout can be structured in many ways, like a NSR ticker adjusted payout with lower and upper bound, or just a fixed rate. If you mine an alt-coin, then your payout also depends on the price fluctuation of this coin (and the difficulty of course, which can be compared to the target/min interest here).

[woolly_sammoth]

I would be very interested in this and will actively investigate once the ability to obtain NSR grants through the protocol is available.

[Nagalim]

the pool provides NBT liquidity

If I put my NSR into the pool, how does it turn into liquidity on an NBT/BTC pair? You’re going to sell the NSR on the open market?
Sorry, I’m just super confused about what this is talking about.

[creon]

Haha I am sorry. No, you don’t put NSR in the pool. You put NBT or whatever in the pool to establish the NBT peg. As a user you really just do exactly the same as now, just that you register with an NSR address and will receive NSR as payout instead of NBT.

[Nagalim]

Ohhhh, sorry, ok. Yah, I’m totally all for this. Even a flat reward like 1 NSR per NBT provided per day sounds better to me than NBT rewards, and we can totally make the system smarter with time.

Man, so many possibilities for this. Thanks for bringing it up.

[masterOfDisaster]

Using NSR for burning or when paying grants seems to be the way to go.
It just makes so much sense in an economical way.

Those who own NSR have an incentive to protect their property or to make a gain based on it.

Protecting the property (by protecting the peg) brought Nu NBT burning.
It’s time for the next step and allow Nu to base business on NSR grants or NSR burning.

I’m all for it!

[cryptog]

I think that it is a great idea.
I feel it would in a way increase the intrinsic value of NSR.
The question is how many nsr per nbt?
In other words, 1 NBT earned now as a reward to support the peg as a LPC would correspond to how many NSRs?
A first answer would be to take the current price of NSR but obviously with a so low liquidity, it would poorly reflect the reality.

[sigmike]

once we have the NSR grants. I really would love to know the state on this (@sigmike)

@erasmospunk is working on it. It should be included in 2.0.