Park Rate Voting

[MaVo]

Yes, it’s all accident. Everything is accident within Nu. Just everything. Placing opportunistic orders, theft, liquidity provision, a broken peg. Everything. And at the same time the actors are anonymous and refuse to leave even the slightest piece of a trail. I got you @woolly_sammoth, keep believing.

But let’s keep it fair here. Allow us to list all those “accidents” as often as possible. Newcomers should have a chance to understand how you guys are trying to suck money out of their pockets.

[woolly_sammoth]

So posting the price, date and amount of the sale on the public forum is not leaving any trail? Was that the accident?

As I said before, I’m all for irregularities being pointed out as that makes the network better so yes, please, do keep pointing them out, as long as you can do so in a constructive way that allows those actually contributing to the network to act on them rather, than just raging.

[MaVo]

How are you acting? You are discussing with those who point it out. Otherwise you are doing shit.

[Sabreiib]

@MaVo, I understand your anger, I bought 7500BKS in 2015, my loss is greater than yours.

Let’s move on, some people are not so smart, just watch their final result.

[excell]

Can anyone tell me the current parking rates and their time periods?

[Cybnate]

They finally have been set to zero by the shareholders. No park rates available.

[Cybnate]

I’m at a loss why shareholders are voting for 6-7% park rates on period for <12 months again.
Anyone cares to comment about this ‘strategy’? Are we doing advertising and why do you think this is effective? Any business case? It certainly doesn’t fit with the buybacks going on while the reserves are at the desired level.

[ConfusedObserver]

Let’s see what you get for 500 NBT in one year and what 2,941 XPEC are worth

Ok, I’m a bit early, but it’s already hard to trade NBT, while there’s decent volume at 5 different markets for XSPEC, which trade at $0.67 each.
That makes $1970 for the 2,941 XSPEC or a gain of 294% as of 2017-08-29.
To be continued.

[jooize]

1. Your post has nothing to do with Park Rates.
2. The point of NuBits is for them to stay worth the same.

[ConfusedObserver]

Your post has nothing to do with Park Rates.

I created a connection from the perspective of the economic feasibility for investors.
NBT park rates suck for the whole year 2017 compared to most random picks.
Please explain why anyone in his or her right state of mind should buy and park NBT if the profit to be had at e.g. XSPEC dwarfs it?
Oh, you already explained that, albeit with the wrong focus.

buyers of NuBits seem not to be parking them much, it doesn’t look like a driving force for demand.

Because other investments are more viable.
Plus other stable coins are more stable AND sustainable (e.g. bitUSD).

The point of NuBits is for them to stay worth the same.

As long as you can continue the greater fools game. Nu has no revenue. If that doesn’t change, Nu can’t survive. NuBits will be near worthless once that happens.
You haven’t started to learn some economics 101, Vice Chief of Liquidity Operations, did you?

[Cybnate]

Please explain why anyone in his or her right state of mind should buy and park NBT if the profit to be had at e.g. XSPEC dwarfs it?

Offtopic: it is hard to compete in a strong growing market. Still some people prefer a savings account with low interest over something else. Some prefer it to have it under their bed. It is not always about profit only (although nice bonus), it is about options and diversity. Please open a new thread if you like to continue this discussion.

[Phoenix]

I would like to find the time to articulate a comprehensive vision of what role park rates should play now and as Nu matures and grows. I will just mention a few quick points here.

Park rates are not very important right now, but I expect their importance to increase. Before they can become really important, there must be a large lending market in NuBits. Today, there is no discernible lending market. We need an active market in parked NuBits in order for them to be effective in peg support when we need it. Therefore, I believe park rates should be offered constantly, even if the rate is very low.

Our current task is to develop a market in parked NuBits. We need to balance the costs of paying the park rate and the benefit of developing this peg supporting mechanism. There has recently been a surge in parked NuBits, to $427,000 total. The total cost of premiums is less than $10,000. This means a little less than 4% of the currency supply is parked. It is a significant but still modest proportion.

As a reaction to the increased demand, I recommend minting shareholders reduce the park rate to 17% from its current 20% rate, for a period of a year or less.

[Cybnate]

I’m at a loss why shareholders are voting for 6-7% park rates on period for <12 months again.

Anyone cares to comment about this ‘strategy’? Are we doing advertising and why do you think this is effective? Any business case? It certainly doesn’t fit with the buybacks going on while the reserves are at the desired level.

I would like to find the time to articulate a comprehensive vision of what role park rates should play now and as Nu matures and grows. I will just mention a few quick points here.

Without the lending market I don’t see any value in short term (<3 months) parking rates. Short term parking rates don’t contribute not even to a future event when peg support is required and the market needs to be reduced. I believe it is just a waste, maybe less than 10k, but even so a waste. Why would you want to do that, shareholders?

I can see some value in long-term rates as that would stabilise the peg during future events. That can be justified as an insurance premium shareholders pay to NuBits holders willing to long-term park against the right rate. A bit like a bond. I don’t believe in bonds expiring within 3 months though. There is no value for shareholders.

[cryptog]

I agree that parking should be developed as a mechanism to support the peg because issuance of new shares NuShares should only be used as the last resort. Nu does not want to dilute shareholders wealth.
In order to do so, parking rates market should be offering attractive rates, all the time, I agree, positive values even if very low.
I do not have particular insights about the exact number so I would following phoenix’s recommendations here.
I believe 17% would be too high within the current circumstance but since we would like to develop rapidly that peg mechanism, it should be regarded as a campaign period to attract customers.
So I would vote for 17% until further recommendations.

[Phoenix]

I strongly recommend minting NuShare holders and data feed providers vote for park rates of 28% annually, for a period up to 6 months.

Today park rates dropped slightly to 17%. I was expecting it to continue to rise, but there was shift in the vote pattern, at least by share days.

Our liquidity model very clearly indicates that elevated park rates are needed in the present circumstances. My confidence that they are necessary and far better than rates at 17% or below is extremely high. Not raising park rates now would be a significant deviation from the model that has flawlessly prevented our peg from falling below $1 for three years.

NSR pricing pressure from NSR sales is currently very high, with NSR sales last occurring at 10 BTC satoshis. From a shareholder viewpoint, this is a bad price to sell NSR at, relative to the option to offer park rates in the high 20’s. Low park rates mean shareholders will get diluted with NSR sales around $10 per voting NSR.

A park rate of 28% for up to 6 months, which is my recommendation at this time, will allow the reserve equilibrium to be approached with less pressure on the NSR price and without diluting NSR as much. Park rates don’t dilute NSR, but of course NSR sales do.

There is a problem with the protocol that shareholders have mandated be fixed, but development has not yet implemented it. Park rates use share days destroyed to calculate rates. This means NuShares that haven’t been transferred or minted with in an extended can have a very heavy vote rate. Most likely, someone started voting for no park rates with old NuShares in the last two days. To counteract this, if you have NuShares available for minting that haven’t been transferred or minted with in a long time, you can have a very large impact.

[cryptog]

Will modify my park rates too.
I even think 28% is not enough though.
You forgot to mention that the peg was lost in june 2016 because we did not sell enough NSRs.
We do not want to make the same mistake here too.
So we must be prepared to sell plenty of NSRs if necessary but i agree let use park rates first.
28% for 6 months means in fact an actual interest rate of 14% over 6 months since the number you input into the client=28 is an annualized figure.
Please correct me if I am wrong.

[Phoenix]

Park rates for 1.5 months and less are currently dropping. That is a very expensive direction for rates to move at this time. I am certain it will cost shareholders a lot more money than if they raised these rates. Our other option is to sell NSR, but that is very expensive at the moment, given the low NSR price. Overwhelmingly, getting support at this time with park rates is the cheaper option.

Please set park rates for 5.7 days to 6 months at 28% annually. It is quite possible we will want to go higher soon.

[DavidMc0]

With very little buy support for NSR (only a few BTC on orders), increasing park rates seems necessary in the short term to boost demand for NBT, which will hopefully reduce NSR sell pressure required to keep the peg.

It’ll be interesting to see if Nu can avoid dropping the peg this time.

Keeping reserves so low in the good times late last year has put Nu in a difficult position now… I just hope NBT holders hold, and NSR buy support picks up soon.

[excell]

I am 100% willing to help the struggling peg. However, first I must have a general idea of the parking rates so that I can make a proper risk assessment. I am sure I am not the only one wondering, so can somebody please provide me with the current parking rates? Thanks in advance.

[jooize]

Current Park Rates (2018–03–22 05:58 UTC)

United States NuBits (USNBT) [32] Chinese NuBits (CNNBT) [58]