[Passed] Liquidbits.net trustless liquidity provision on USD, EUR and BTC pairs

Proposal RIPEMD160 hash: 911a1c622623740eda54a5ac329933a20c7f1111

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Custodial Address: BMuti7RC4P6htnka8FuBXSoppngYXBdVbL
Amount Requested: 1750 NBT

Fund request to operate Liquidbits.net, a liquidity pool for NuBits.

@cybnate will start an independent trustless liquidity pool (TLLP) to provide liquidity on the EUR/NBT, USD/NBT and BTC/NBT markets. A target of 7,500 NBT on the bid and ask side of the order books will be provided by the pool split over 3 currency pairs, resulting in a total maximum liquidity of 15,000 NBT. The operation will end after thirty (30) days.

Liquidity provided by users will be compensated as follows:

  • with up to ten percent (10%) per month (0.33% per day) on CCEDK’s EUR/NBT pair on both sell and buy side to a maximum of 2,500 NBT ( max pay-out 247,50 NBT)

  • with up to ten percent (10%) per month (0.33% per day) on CCEDK’s USD/NBT pair on both sell and buy side to a maximum of 10,000 NBT (max pay-out 990 NBT)

  • with on average ten percent (10%) per month (0.33% per day) per month (0.25% per day) on Bitcoin.co.id BTC/NBT pair to a maximum of 2,500 NBT in total but split as follows:

0.38% per day up to 1250 NBT on sell side ( max pay-out 142.50 NBT)

0.28% per day up to 1250 NBT on buy side ( max pay-out 105.00 NBT)

using the pool’s calculations based on the Dutch auction model to allow a fair distribution of returns amongst liquidity providers. 1,500 NBT of the requested amount in this grant will be held as reserve to make pay-outs to connected users. Pay-outs take place every 24 hours. The minimum pay-out is 1 NBT.

Operations and pay-outs will start within 3 days after the custodial grant has passed successfully. The pool will operate under the name Liquidbits.net.


The pool fee is 250 NBT and serves as a contribution for the effort of supporting the pool, @creon’s and @woolly’s support and work, supporting the users and the monthly costs of operating the server.


After the operation the shareholders will be provided with detailed information about the liquidity provided by the pool. If the target was not reached during some time, or users provided enough liquidity to allow a lower average interest rate, then the remaining funds will be used to continue operations for up to another 30 days or for continuing operations with another grant or a combination of both until depleted.


If, for some reason, the decision is made to discontinue the pool project after the 30 days term has passed, the remaining NBT from a previous grant will be burned.

Disclaimer and risks

The provisioning of the pool is based on best efforts. No claims can be made by users when the pool server or client software is not available or not working properly.

Liquidity providers remain in full control of their funds throughout the operation of the pool. The pool operator won’t have access to any of the funds hence the reference to trustless liquidity pool. Therefore liquidity providers bear the full risk having their funds on the exchange and won’t be compensated by this pool on an exchange default or inability to withdraw their funds.

Liquidity providers are exposed to the risks of speculators hedging against them on other pairs than USD/NBT like EUR/NBT with the BTC/NBT pair a particular high risk due to its high volatility.

The proposed operation is mainly meant to be a test run. Therefore the provided liquidity is relatively low and I won’t guarantee continuing the operations after this 30 day test run. It is meant to be another test run for the software but also for price discovery (interest %), gauging the interest in fiat liquidity provisioning in order to maintain the NuBits peg with the US$ and EUR, risk assessment and determining a sustainable compensation for the costs of operations and maintenance of the software and the time it takes to operate.

Finally, please be reminded of the following:

Don’t risk more than you can afford to lose!

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Verify. Use everything between and including the <custodianhash></custodianhash> tags.

I dont understand the withdraw fee’s on ccedk. 1% for Doge and BTSX withdraw fee?
Or what is that: Sepa deposit 3 Euro ??? Sepa withdraw 3 Euro. If you deposit 10 Euro and then withdraw it, 10 - 6 = 4.
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I am fine with the conditions.

Here sell side means “selling bitcoin”?

Also, the 10% is in fact 9.9% (0.33%*30 days).

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@Gilbert If you plan on sending fiat without using it, it is definitely not worth it. We are all the time trying to find new banking connection with less fees, but for the time being you are charged the cost we are charged from our bank and when it comes to SEPA it is the same cost on both deposit as it is on withdrawal. The 3 EUR is a flatfee and not a %, so we try simply to cover our basic costs.

1% on Doge and BTSX which is charged in new fees doc to BTS is 1% on withdrawal only and for the time being only, I expect BTS soon to be similar to Nushares cost on withdrawal. With higher activity, reduced fees is an immediate result from our side.

Our support to NBT and Nushares resulted in low fees pretty soon after implementation, and have stayed low since then. If the May introduction of certain BTS releated pairs result in increased traffic on BTS pairs and continued low traffic on Nushares, it might be the other way around in future. I do hope however it is just a question of time before trading of Nushares will return to CCEDK exchange. We have the pairs to offer 6 of them in fact, and to help increase traffic soon the NSR/BTC pair https://www.ccedk.com/nsr-btc will be with zero trading fees on both buy and sell side. which should help attract some activity as well.

Forgot to mention, this will be the same case in regards to NBT/BTC pair https://www.ccedk.com/nbt-btc, also 0% trading fees on both sides. And same again on BTC/EUR, BTC/USD and BTC/CNY.


Due to the change of new platform, there might be some discpreancies for which we apologize. It should be all fully adjusted in coming week, and old trading history on exchange as well as user will also be back up again, as one of the issues still missing.


Confirmed. Sell side means selling Bitcoins you own. So you are exposed to BTC volatility.

Actually there are on average 30.44 days in a month assuming a normal year has 365 days. That would be 10.04% on average. That’s why I said up to 10% :smile: Please consider the day rate as a month is imprecise.

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911a1c622623740eda54a5ac329933a20c7f1111 verified and voted.

Looks like the voting stays a bit behind looking at the last 100 block in the block explorer. There seems to be a majority of Shareholders hesitating at this stage. Would be keen to understand why. Are the rates wrong, wrong exchange or don’t we need a liquidity pool for fiat pairs? Or am I just impatient?

If you have bought / sold NBT on ccedk (before the hack) you would see no trade for weeks. The NBT/crypto pairs really takes volume away from NBT/fiat, for cryptoexchanges anyway.

I am voting for it though because it is better than nothing.


I will vote for it for the same reasons as @mhps

We need it because it protects the peg as a backup liquidity even if it does not generate volume, I think.

Maybe the Nu dev team, which could account for a non negligible portion of Nu ownership did not have the time to read through it yet?

CCEDK has had40k volume over the last 24h on NBT/EUR.

This fiat pair has generated most of the volume for NBT over the last 24h.

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Using EUR/NBT as a proxy to trade/convert EUR/USD ?

Interesting remark.
EUR/USD is indeed increasing. http://finance.yahoo.com/echarts?s=EURUSD%3DX+Interactive#{“range”:“5d”}

FYI have updated and restarted the server and swapped wallets. Server should now be available again for testing without pay-outs though.

Does this mean each person has to pay 250 NBT to use the pool?

The NSR holders have to pay that amount to the pool operator(s).
The participants can join the pool for free.


LiquidBits.net is live!

The custodial grant has just passed. You can sign up now and with that the 30 days period starts. The liquidity is being send to the client.

You can find the instructions here: http://cybnate.github.io/index-liquidbits.html

I hope that the Plunge software can run with LiquidBits soon. Currently it stops working after a few minutes.
I know that @woollysammoth is working on it.
The Plunge software will auto-install and you can basically skip all the steps except the first 3 in the instructions.

Please let me know if you have any questions.


With 0% fee at ccedk for the trading pairs NBT/BTC and BTC/EUR this offers a perfect chance for liquidbits to hedge BTC buys in EUR at 0 cost (proxy them to EUR, store them as Tier 2 liquidity).
This allows liquidbits to operate at reduced volatility cost opening the door to very profitable overall operation.
…I already have some money at ccedk :wink:


Concretely speaking what would be your hedging strategy?

Simply speaking: move some of the BTC that are received in the NBT/BTC pair over to the BTC/EUR pair.
This poses a USD/EUR volatility risk and requires a liquid BTC/EUR market.
But as there’s 0% fee for BTC/EUR it might be cheaper than to face the volatility of the BTC market.

Basically you need to a level of BTC in the buy side of the NBT/BTC pair to define when or how much BTC you want to shift to EUR.
I bet this can be done automatically by the server component of nupool (if you know what you do…)

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