Park Rate Voting

[Nagalim]

Offering rates beyond 6 months is taking a mortgage even further into an unknown future

If you offer 20% on 6 months, and i park for 6 months then just hold the money in my wallet for 6 months, it’s the same as if i parked for 1 year at 10%. Whether someone is holding their nbt in their wallet or parking it, you cannot make a person sell their nbt. So if you pay a certain total sum of money through a particular time interval, it doesn’t matter if it was a lot for a short period and then nothing or a little for a long period if the total cost and time was the same.

I’m not doing an experiment, I’m stating economic facts about our network. If we were selling new products we wouldn’t need park rates. To me suggesting we sell nubits as a solution to increasing park rates is like telling an infirmed patient that the best way to feel better is to get well.

[Cybnate]

To me suggesting we sell nubits as a solution to increasing park rates i

You are not reading my posts properly. Haven’t said that at all.

[Cybnate]

So if you pay a certain total sum of money through a particular time interval, it doesn’t matter if it was a lot for a short period and then nothing or a little for a long period if the total cost and time was the same.

I’m trying to have people park their money and make it as easy as possible (long term rates). You are aiming for low cost solutions for Nu which potential parkers can only profit from is they are very active, checking every week or so. I think we only attract people by offering longer term high park rates. That is just marketing. I wouldn’t go to a bank to park money for 22 days on a regular bases, too much hassle. If I do I hire someone to save me the hassle. I would aim for some longer term rates to set aside money I don’t need for a while. It is not rocket science. I don’t think the Nu network has different rules. It actually start to become clear it hasn’t as we have still very low park rates.

[Nagalim]

As far as I understand, your response to the question of where Nu gets the money to pay for increasing park rates, with reference to share dilutions, was as follows:

People buying NuBits and other pegged coins to park

I guess you mean that growth always follows recession.

as easy as possible

When you go to the bank, they don’t say:
"You can invest for 3 months and we’ll give you 8 dollars, but if you invest for longer than that we’ll give you 4 dollars."
Cause that wouldn’t make sense. Instead, they say:
"If you invest for at least 3 months we’ll give you 8 dollars. Feel free to leave it in longer than that."
The base-2 thing is the latter case. It’s simpler and more marketable than the former case.

[mhps]

OK. I see you are disagreeing on transaction cost (of time) and opportunity cost. If these costs are high enough, the rates distribution can certainly inverse or change into any distribution shape.

[Cybnate]

I guess you mean that growth always follows recession.

I’m referring to new coins we should introduce as discussed.

“You can invest for 3 months and we’ll give you 8 dollars, but if you invest for longer than that we’ll give you 4 dollars.”

That sound like your base-2[quote=“Nagalim, post:413, topic:161”]
Cause that wouldn’t make sense.
[/quote]
No, it doesn’t.

Instead, they say:"If you invest for at least 3 months we’ll give you 8 dollars. Feel free to leave it in longer than that."The base-2 thing is the latter case. It’s simpler and more marketable than the former case.

The base-2 thing is the latter case.

I think you are contradicting yourself.

I’m proposing [quote=“Cybnate, post:407, topic:161”]
3% for 23 days
6% for 1.5 months
12% for 3 months
[/quote]
So the bank says, you get 6% for 1.5 months, feel free to leave it longer. I can give you a better deal if you leave it for 3 months you get 12%, but feel free to leave it longer. Your base-2 think does exactly the opposite and is illogical from an end-user perspective in my opinion. Looks good for Nu, but it isn’t as it doesn’t meet the market.

We have now ended up with almost similar rates for all terms offered, which is odd and not easy to sell and have Nu benefiting from this in the form of a good uptake.

[mhps]

Action recommended: advertize high, limited-offer, park rates outside the community.

I recommend opening a thread on Bitcointalk to start with and then inviting the shareholders to post there to keep the thread actual with rates and terms. Open to other ideas.

Action taken. New thread in Bitcoin Forum > Economy > Marketplace > Lending

Park Nubits and earn 12% Apr. interest. Good rates don’t last long
https://bitcointalk.org/index.php?topic=1447342

Nubits is a cryptocurrency pegged to the USD. It’s done so successfully for 1.5 years. As part of its liquidity control operations, when BTC price rises, Nu uses “parking” to rein in extra Nubits on the market.

Now Nushareholders are offering ~12%APR for 3 month to 23 days and 8%APR for 11-23days.

Just buy Nubits, park them (do it in your wallet), and the “interest” will be paid by the blockchain at the end of the period. The park rates are often changed according to market conditions. Once you park, your rate is fixed.

You can buy Nubits here (most liquid exchanges are poloniex and the NuLagoon Tube).

also posted to Bitcoin Forum > Alternate cryptocurrencies > Marketplace (Altcoins)

[Nagalim]

if you leave it for 3 months you get 12%, but feel free to leave it longer

Except that if you leave it longer you get 0%. So, feel free to leave it longer but if you do we’ll take away your reward.

The base-2 is in annual %, not total cost. The total cost is the same, so park 1.5 or 3 or 6 months and you get the same 8 dollars in base-2.

[Cybnate]

Except that if you leave it longer you get 0%. So, feel free to leave it longer but if you do we’ll take away your reward.

That is right, that is where Nu park rates differ from a normal bank as we are not into the lending business.

The base-2 is in annual %, not total cost. The total cost is the same, so park 1.5 or 3 or 6 months and you get the same 8 dollars in base-2.

And that doesn’t make sense. Why would you do that? The risk of parking for 6 months is higher so people would expect a higher rate before considering that. And luring people in for very short terms is hard with BTC rising.

[Cybnate]

Now Nushareholders are offering ~12%APR for 3 month to 23 days and 8%APR for 11-23days.

Not sure about this, my client says 13% for 3 months and 11.66% for 23 days and 8.7% for 11 days.

[Nagalim]

Why would you do that?

Because your plan is to give people a calendar and tell them they can have their bits unpark at any date they want, except if choose the wrong date we take away their reward.

My plan is to tell people we will pay them a certain amount of money to park for at least this specific amount of time. Then, let them choose whatever date they want.

[Cybnate]

Because your plan is to give people a calendar and tell them they can have their bits unpark at any date they want, except if choose the wrong date we take away their reward.

A bit of education shouldn’t be too hard. You appear to be treating potential parkers as having no educations, can’t read types at a cost of Nu by advertising lower rates than they can actually get. It sounds like deceiving.

Then, let them choose whatever date they want.

We disagree. I would advertise clear rates for fixed periods like any bank does. Why make it hard and be different when you want to attract people from outside of this community?
Park for 3 months (until 23 July) and have 13% p/a return. Sounds clear doesn’t it?

[mhps]

Not sure about this, my client says 13% for 3 months and 11.66% for 23 days and 8.7% for 11 days.

That is what “~” is for. The rates have been floating.

Feel free to follow-up the post at bitcointalk. I am not sure if the lending one can survive because it might be limited to bitcoin lending.

[Nagalim]

It sounds like deceiving.

Huh?

We provide parkers with a calendar and tell them how much they get if they park x amount on y day. That’s the feedback parkers get from our UI. Is it simpler if they see the same number on all the days and can choose when they want their money to appear again in their wallet, or if they find out they have to test each day to find out how much they get and it drops off precipitously at some date?

My suggestion would be as follows:
3% for 12 days
6% for 23 days
12% for 1.5 months
6% for 3 months
3% for 6 months
1.5% for 1 year

[Cybnate]

That’s the feedback parkers get from our UI.

The GUI is not great. It would be better when the current rates are selected that the 'approximate end date would be set accordingly. It is now a puzzle to calculate the right days based on the duration chosen.

[quote=“Nagalim, post:424, topic:161”]

My suggestion would be as follows:3% for 12 days6% for 23 days12% for 1.5 months6% for 3 months3% for 6 months1.5% for 1 year

We disagree, setting rates beyond 3 months is not a good idea at this stage as we are taking a mortgage far into the future. I’m surprised that you suggest such a thing. But I will shut up and leave the floor to other opinions.

[Nagalim]

I’m talking about the network as is.

I’m surprised that you suggest such a thing

And I’m surprised you would suggest 12% for 3 months. It’s a mortgage far into the future and as I’ve shown I would only be comfortable with half that amount. But I agree we’re speaking past each other.

[masterOfDisaster]

I don’t know whether it was read, although I linked it before.
Can my reasoning for the park rates I set in my data feed shed any light on this discussion by hopefully explaining it from a slightly differrent angle?

masterOfDisaster's Nu datafeed - BETA

A detailed explanation of the adjustments will follow. I won't provide such a detailed explanation for all updates of the data feed, but as there's not much experience with park rates and how they affect the market, I wanted to make sure this updated gets accompanied with a reasoning for it. It's necessary to have that reasoning to be able to learn from it for future situations. I adjusted the park rates to: { "blocks" : 16384, "rate"…

[Financisto]

This is gonna be a bit off-topic, but still talking about park rates and just to clarify its protocol rules:

From the investors POV, how do park rates work during park length?

1. Do they work like “Fixed rate bonds” which have a coupon that remains constant throughout the life of the bond?

e.g. blockchain shows 1yr length, 12% pa => investor parks 100 NBT; after 1yr he gets back 112 NBT unparked no matter what subsequent changes in park rates might be during his NBT parked time.

OR

2. Do they work like “Floating rate notes” (FRNs, floaters) which have a variable coupon that is linked to a reference rate of interest?

e.g. blockchain shows 1yr length, 12% pa => investor parks 100 NBT; after 1yr he gets back 100 NBT (principal) unparked plus (previously) unknown interest depending on the median park rate voted for that whole 1yr invested period.

P.s. I think it’s important to clarify that details before advertising this offer beyond this forum…

[Cybnate]

It works like 1 “Fixed rate bonds”. The reward in NBT is displayed in the client when you lock in the funds.[quote=“Financisto, post:428, topic:161”]
P.s. I think it’s important to clarify that details before advertising this offer beyond this forum…
[/quote]
Good one. Will edit my post

[Financisto]

Thanks.

Good one. Will edit my post

No problem.

@mhps already did that saying “Once you park, your rate is fixed.”

I just came up with that because people (those who never researched what Nu ecosystem is) might still think this is some sort of SCAM where you get your coins stuck while your promised interest rate could be a “grey area” to step in…