Nubits to act as USD pairing?

NuBits
#21

Nope. The financial decision is yet to be made.
But like I said: without substantial changes NSR will drop futher and below 7 Satoshis I might make the gamble.

It’s interesting that you question my motives, but don’t do that with @Phoenix’ motives.
You don’t even wonder how @Phoenix could replace @JordanLee.
Did you receive a private message from @Phoenix or is it your own conclusion that I’m a troll?

I know that it’s a waste of time asking you that, but would you mind arguing about my assessments?
Or are they just wrong, because the differ from what @Phoenix says?

#22

That was a fairly good summary and analysis. However it said

The problem is that the Nu network’s parking rates are paid with new NuBits rather than existing NuBits and thus they increase the supply.

In fact according to @willy who runs alix and created https://www.parkingyournubits.rocks/parkinglot/ (now not working):

That is for ALL premium paid to parking until early June. It’s about half of what Nu paid to liquidity providers IN A MONTH. So even in theory parking premium may have contributed to the loss of peg, two main things were what killed the reserve: 1) regarding proceeds of selling Nubits in NBT/BTC market as profit – while they are just “transmission fluid” flowing in and out of the BTC-based pegging machine as BTC price fluctuates – and using the false-profit-but-true-reserve for fruitless NSR buyback; 2) paying unsustainable amount for liquidity in pegging via highly risky BTC/USD market.

These points above about pegging via BTC/USD are highly relevant to discussions in this thread about pegging via direct nbt/usd, which does have its own problems.

#23

Indeed the NBT burden from parking are few compared to other costs.
The thing is: they still create a liability for which no assets are in the books.
Hey that’s not very bad, because Nu has no bookkeeping :wink:

was only possible, because there was no accounting that registered the NBT as liabilities and the BTC as assets.
I fear this mistake will be made again.

creates costs that need to be compensated by revenue. Otherwise Nu bleeds out. Ooops, already happened.
The only way I can think of pegging NBT through BTC/USD to USD is by a sufficient spread.
Although it’s never really (convincingly!) explained why a big spread in the BTC/NBT pair is no option, it’s just not being done.
It wouldn’t require any change.
The chief of liquidity operations could just request that NBT are sold at $1.05 and bought at $0.995. The numbers are random guesses to give food for thought.

And Nu should work on a tight spread NBT/USD pair and on ways to store USD in a decentralized way.
Nusafe would be an option.
There’s need for a spread in NBT/USD to pay for the Nusafe expenses, but that’s smaller than the spread, which is required to compensate BTC volatility.
Why are fiat gateways not pushed?

Both the spread in the NBT/USD and BTC/NBT pair are fair (forNu and its customers), because customers are provided with a Dollar like crypto currency that doesn’t require AML/KYC formalities.

So many ideas. No work done in the relevant areas.
@Phoenix is no idiot (not in terms of intelligence) so I must conclude he does all this on purpose, which makes him dangerous and Nu a ponzi scheme by his decisions.

#24

I think we need to a have a long term vision.
If Nu is a ponzi then all cryptos are and any currencies as well.
The goal is to have more revenues than costs.
The revenues will be nubits sales.
The costs are liquidity provision.
We can achieve that by having a fractional reserve system, as any fiat currency in the world ( how much the feds can buy back usd immediately? Certainly not 100% of the outstanding usd in circulation) has.
In order to do so we need to establish confidence in the l currency, which is basically showing we can buy back immediately any nubit when there is a demand for a sell.
So we need to provide liquidity all the time.

#25

NBT sales aren’t revenue unless you have a sufficient spread between sale and buy price.
Then the difference between sale and buy can be revenue.

Does it start to sink in why I’m campaigning for it?

#26

What, you want a spread so you can game it yourself? You scammer.

#27

There is a theory floating around that JordanLee campaigned extensively for a very tight spread so he could game it with minor swings in the BTC price. He of course got his wish, and the buy support suffered the consequences. Instead of running around with your blinders on, please explain how anyone would game a wide spread. I don’t see how it is possible. I think a spread is a fairly good idea, if we are going to continue to ignore the idea of NBT/USD as the trading pair that shareholders support with liquidity. It should be something close to the daily average BTC/USD price swings in my opinion.

1 Like
#28

A spread would already be a step backwards from an ideal solution. Nu’s goal should be to do business only in the NBT/USD pair.
But not even that step is being made.