The Nu Lagoon is an innovative private funded Nubits liquidity group pool. It runs in a way similar to an open-end fund runs. Pool participants can deposit into and withdraw from the pool every accounting day.
Why to participate?
By deposit fund into the Nu Lagoon, you are providing liquidity to support Nubits pegging at $1, which is crucial for Nu. And your fund will be expected to have 7.2% monthly return or 130% annual return. The actual return could be less or more than expected because of the volatility of BTC price against USD and other factors.
How to participate?
Extremely easy. Send BTC or NBT to deposit address listed above. Send 0.0001 BTC or 0.01 NBT to the same address to withdraw funds. Don’t send fund from address which is not controlled by you, for example, your exchange account.
What else I should know?
Please carefully read the terms of the Nu Lagoon Pool A. Participating the pool means you understand and agree with the terms of the pool.
Pool A will accept deposit in BTC and NBT. The BTC deposit address is: 3NuyG4RdbaFksCcRuthCAQmx6HfJcJ3Upi, and NBT deposit address is: BGNbLajr7tSD5LEqYmG2hztzciPhmjf4eX. Deposit transactions is public for anyone on the blockchains…
The send-from address of every deposit transaction will be the participant’s account address, which is also the address to receive fund withdraw in future. If multiple inputs are used to deposit funds, the address in the first input will be the participant’s account address.
Deposit less than 1000NBT or 4BTC will be rejected and will be returned to the account address (the transaction fee will be subtracted).
To submit a full-size fund withdraw order, participant send 0.0001BTC or 0.01NBT from the account address to the pool’s deposit address. To submit a half-size fund withdraw order, participant send 0.0002BTC or 0.02NBT from the account address to the pool’s deposit address.
Every Thursday during the operation of pool A is the accounting day. 10:00AM GMT will be the COB (close of business) time every accounting day. Deposit transactions and withdraw orders sent before COB time every accounting day will be effective that day. Transactions and orders sent afterward will be effective next accounting day.
The price of BTC used in the calculation will be the acquirable last trade price at COB time of the accounting day.
The number of shares participant get will be: Amount of NBT deposit / NAV or Amount of BTC deposit * BTC price / NAV.
The asset of participant holding will be: The number of shares * NAV.
If participants withdraw full-size fund, they will get: The number of shares * NAV (in NBT) or The number of shares * NAV / BTC price (in BTC). If participants withdraw half-size fund, they will withdraw a half of fund and keep another half of fund in the pool. If the number of shares less than
2000, participants can only withdraw full-size fund.
The manager will process deposit transactions and withdraw orders, and publish the accounting report of the pool after COB time every accounting day.
The manager will place a portion of fund in tier1 and tier2 on up to 2 exchanges. The amount of fund placed on exchanges will be set according to how much is needed based on several factors, for example the total size of the fund, the trading volume on the exchange, how often the walls will be unbalanced. The manager run the nubot(s) to support Nubits pegging at $1.
If buy side or sell side of fund in tier1 and tier2 has less than 25%, the manager will manually balance it by transfer fund between tier2 and tier 3 once every working day. If either NBT or BTC in tier3 is not enough for the need of balance or withdraw, the manager will convert fund from other
LPC and exchange.
The manager will submit a custodian fee grant request once a month. Nu shareholders has promised to pass the fee grant in 10 days. The custodian fee granted will be added into Holding of NBT and subtracted from Custodian Fee wait to be granted.
The manager reserves the right to optimize the operation of the pool when situations changed, for example the Nubot upgraded.
Fee and Calculation
Now the daily custodian fee rate is 0.34%. 0.1% is manage fee rate, 0.24% is participants’ expected return rate.
The custodian fee rate could be adjusted by the terms in motion of the Nu Lagoon or another motion passed by shareholders in future. A new fee rate will be announced as soon as possible after it is decided, and it will only begin effect at an accounting day in future.
NAV of the pool will be calculated by the following formulas:
Total asset = Holding of NBT + Holding of BTC * BTC price
Custodian Fee = Custodian Fee in previous accounting day + Total Asset in previous accounting day * custodian fee rate * days
Manage Fee = Manage Fee in previous accounting day + Total asset in previous accounting day * manage fee rate * days
NAV = (total asset + custodian fee - Manage Fee) / total number of shares
The Nu Lagoon has only received 4000 NBT fund deposits. I would like to encourage shareholders give it a try with a small size of fund, say 1000 NBT, as your fund will be very important support for Nubits. Fund deposit in next 22 hours will be included in the liquidity operation started at 20 Mar.
It is ok to run this first round with a small amount of funds. It is the first time we see such a concept implemented in practice and I guess people are now looking at this experiment to see how it goes before committing too much funds to it. We should not be discouraged by small amounts at this point
To deposit fund or submit a withdraw order to the Nu Lagoon, you need to use the coin control feature. Here is a guide for anyone not familiar with it.
Step1: Enable Coin Control
Step2: Select Inputs
For Nubits and Bitcoin:
Step3: Custom change address & send transaction
For Nubits and Bitcoin:
Trouble-shooting: Strange address recovery
If a strange address is used as the first input address in your deposit transaction somehow, don’t worry. You can recover that strange address back to your control by dump and import its private key in the debug window console.
it turns out that 1BE… was a hidden address of mine, i just import its private key and now it appears in my wallet.
this is very strange bahaviour and just report it here if someone else have this issue.
thanks both Henry and Sigmike for their resolve!
The accounting day will change to every Thursday. It’s just because that I found Friday is not a good time for me to do the COB process, especially, there is a lot of manual work needed now. To set the accounting day to every Thursday will be more comfortable for me to finish the COB process in time. Sorry for the change.
The next accounting day will be 26th Mar. The custodian fee will be calculated for 6 days in this round.
The Nu Lagoon will step out when liquidity is needed to maintain the peg. We will be doing some preparation and test of running nubot on Bitcoin.co.id. The advantage of the Nu Lagoon is that we don’t need an extra proposal for shareholders’ approval to support another exchange.
Meanwhile, We would also like to encourage @learnmore and the exchange itself could also join the custodian team, because that is good for the network.