total parked now: 68247
Δ=13010 over the las 24h i guess.
I will decrease too my parking rates.
total parked now: 68247
Seems like we are reaching a better balance now, even though I hope to see a bit more than this with today’s high park rates.
I think it is a real bargain parking with the rates we are seeing now; considering how Nu has performed since inception.
We should advertise this increased park rates on reddit and twitter. Also would be nice to have them published on the home page of nubits.com, it would attract many more to Nu; but this is a bit OT here
I do think it is time to lower them form the current levels. Will keep my datafeed the same as that is already significantly lower (5% for 3 months, 2.5% for 1.5 months). Still keeping the 6 months on 7.5% as I think it is good to have some NBT parked for a longer time preventing from having a returning problem in 1-3 months.
That makes a lot of sense. I will modify accordingly next time I adjust my parking rates.
Increasing to 8% average.
It seems about 16K NBT has been parked since the rate increases. I think we were at 54K~ now up to 70K~ .
Over 90,479 NBT are currently parked. This means ~36,000 NBT have been parked since rates were raised. The maximum absolute premium paid is 3%.
I think we should stop offering the very short term rates <1.5 month. I suspect, but cannot prove that the majority of the parked funds is very short term. I don’t think that is a particularly good deal for the Shareholders. It might also start to compete with the liquidity pools and exchange traders which doesn’t help either.
The information missing is how much new money is being brought into the Nu ecosystem vs trading on exchanges and liquidity provision. I don’t see a way to answer that question which would help to inform how successful the park rates are. I hope we are not biting in our own tail and interested to hear other views.
A problem is getting people to park in the first place. There’s still asymmetry between buy side and sell side liquidity, which means some risk in maintaining the price peg. Nubits has only been running for 6 months; 1.5 months is already very long for that risk.
103495 has been parked now. I made some posts on reddit and twitter to make people aware of the recent rates.
It is my opinion that higher bins should be handing down to lower bins. That means if I have 10% in the 3 month bin and 5% in the 1.5 month bin, in 1.5 months I should have 15% in the 1.5 month bin if everything goes the way I thought it would. People will often look for the best deal and many will park for that 1.5 month at 15%, but is that really worse for Nu than the 10% for 3 months that was offered? The 10% for 3 months while voting 5% on 1.5 months was a prediction that Nu would be in trouble in 1.5 months but not so much now. If that prediction was correct, then certainly the 15% at 1.5 months was justified.
I don’t think we need less short time frames. I think we just need to make sure we are consistent about the kind of futures we are speculating when voting for different park rate bins.
If someone parks some NBT at 5% rate for 30 days, and the rate changes to 10% on day 15, at the end of 30 days, will the effective rate be 7.5% or or 10% or still 5% ?
The amount of NBT that will be paid as parking interest (once the NBT unpark) is derived from the interest rate (and is part of coming unpark transaction) the moment the NBT are parked.
So a change of parking rate interest that happens after the NBT have been parked, doesn’t affect the already parked NBT.
It wouldn’t make sense to change the reward after the NBT have been parked and from a contractual point of view it would be unbearable.
A contract can have any terms as long as both sides agree to it.
Not necessarily, because you don’t know what happens in the future.
The park rate might very well rise even further long-term although it has started to decline by some percent short-term.
If changed park rates did have an effect on already parked NBT that would lead to
- an incentive to park only for the shortest time that is possible, because of the uncertain outcome
- higher parking rates to compensate for the uncertain outcome
That is right, but a floating park rate is kind of unexpected if the time frame of the parking is not variable after the parking has started.
A floating park rate would (likely) only be widely accepted, if parked NBT could be unparked at will and not only after a certain time has passed.
I guess the current scheme is modeled after bank CDs. Maybe parked Nubits should be allowed to be traded. That is an application of Nubits as a financial instrument. The bond market is way deeper than the stock market.
That would give Nu planning reliability while people could buy or sell parked NBT, effectively trading the contracts for the parked NBT.
From a non-developer point of view all that’s required is the ability to change the unpark address after NBT have been parked.
But I doubt that’s possible, because once the NBT are parked, the control over the NBT is no longer in the hands of the owner, but delegated to the protocol, right?
A change of protocol is probably needed.
Due to low volatility the volume of bond trade tends to be big. The amount of currency involved become a deep liquidity pool to other trade. So a bond market might give Nubits a huge boost in liquidity. We already see that sometimes parked NBT is greater than traded (on walls).
I thought the whole point of parking was so to take it out of circulation so it can’t be traded. I guess i don’t fully understand the bond market though.
I guess the parked Nubits will be a different token on the blockchain. Could be side chain?