Pegged to 1 BTC, NuBTC/BTC pairs would essentially be like nubit/fiat pairs as far as holding the peg. The key would be tying it into NBT, such that you can burn across the NuBTC/NBT divide on the block chain. This way, we completely move hedging costs onto the network and off the hands of our liquidity providers. This allows us to use very small spreads in our tllp’s and build the spread into the burning mechanism. All liquidity provision would have zero hedge risk, as Nu would shoulder that burdeon using a much more convenient method of risk/reward analysis that can easily be revamped. Without NuBTC, we are forced to provide liquidity providers with a spread and a price feed.
Just some thoughts.