Is the NU community willing to vote to increase the liquidity on HitBTC?
I have finally liberated my LP funds from Cyrptsy - at a loss through DOGE. But, praise the Lord, they are in my hands. So - I was hoping to put them back to work for Nu.
I propose setting up another NuBot to operate on HitBTC. I know NuLagoon is there, as is ModPuddle. ALix tells me there is 2K total liquidity, but I see ~2K on the sell and 5K on the buy.
–Begin Grant–
BTdQH5QNHU1EHsbAxfbZfQpk9YRR8EDJfu 1 NBT
HitBTC Increased Liquidity - NuRiver Private
Operator: @nmei
Type: NuBot
Exchange: hitbtc.com
Pair: BTC/NBT
Strategy: Tight Peg Spread After Fees: 0.5% Liquidity volume: 2000 NBT
Bid/Ask target volume: 50%
Balancing bid/ask: at least each Wednesday
Balancing goal: each side between 45% and 55% of volume (preferred balancing method: seeded auctions) Ask/Bid Reward Rate: 0.33%/day (not paid in advance)
Duration: 30 days
Operator Fee: 0 NBT Initial Motion Grant: 1 NBT End of term Funds: 198 NBT
–End Grant–
Normally, I’d just throw the funds into one of the other pools, but I keep pushing HitBTC because I want it to grow.
Parametric order books or someone with a higher spread. The orders you’re referring to are around 0.983 and thus over the 1.5% tolerance ALix is using.
I’ve updated the initial with the details. I’ll hash a motion tonight.
The core:
Liquidity volume: 2000 NBT
Spread After Fees: 0.5%
Ask/Bid Reward Rate: 0.33%/day (not paid in advance)
Operator Fee: 0 NBT
Initial Motion Grant: 1 NBT
End of term Funds: 198 NBT
What are the fees? Tolerance is very high, won’t call it a tight spread. The reward is also 0.33% which is higher than the top3 ALPs (0.24%). Not sure whether this is a good offer, could you please sell it to me over an ALP offering?
There are no ALPs on HitBTC - the software isn’t available - or I would run one.
HitBTC currently has no fees for NBT.
The other two NuBot operators are both >0.5% offset.
The other two NuBot operators are both > 0.33%.
In my mind: if this were just an ALP where I could come and go with my money - the rate would be lower. But the fact is: my money will be locked into this effort for a month, and there is a cost for that.
So for 0.33% you get two features you don’t have in an ALP: Guaranteed 2K liquidity & at a minimum weekly re-balancing. You don’t get this with an ALP.
Consider a 2K 0.24% ALP with operator fees: 144 + 20 = 164.
So for that 35 NBT extra NBT you’re getting the above two things. And I can tell you the re-balancing will take more than an hour over the month. So that’s less than $30/hr for highly skilled labor - a very difficult rate to find on the open market.
Can you share with us the amount of balancing you need to do and how you manage without a T3 custodian? Are you balancing across exchanges or just with NuLagoon?
If there is good liquidity on either side of HitBTC I take down my bot and convert on HitBTC to give them trade volume. Since that was the goal initially…
Of the 6 times I have made the re-balance…I have only been able to do that once.
The rest of the time I am the T3. I re-balance from my off exchange funds. Otherwise I shift from among my T1 funds that I am providing to the ALPs. Only twice I have had to actually convert funds - because BTC swings left me with only BTC or NBT. Both those times I’ve made the change on polo…
Thanks for your elaboration. This is a great example of how a T1-T3 custodian I think should work. See the discussion here: [Withdrawn] T3 Trusted Custodianship @Nagalim. A T4 interface is not here though as Nmei is self-funded, but I’m sure that T4 (FLOT) would be interested to deal with NMEI at some stage to balance T1-T3 liquidity when required.
