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

Ah, I think there is some confusion then.
This is the deviation for the pyBot client currently hardcoded on line 326 of trading.py. I’ve taken that hardcoded figure and altered it to read a variable from the config file, defaulting to the existing figure if none is set.
The deviation here is how far from the pricefeed price the order price needs to be before a shift is required.

deviation = 1.0 - min(self.price, self.serverprice) / max(self.price, self.serverprice) if deviation > self.deviation:

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Deviation + spread < tolerance. For nupond I set them equal and it’s causing some minor issues.

Basically, spread is where the client places orders and deviation is how much those orders can deviate from what they would be if the bot started fresh, so if the actual deviation is bigger than this parameter the orders are canceled and replaced.

Tolerance is pure server side. It is the window of acceptable orders based on the current price. If an order is outside this window, it will not be credited.

I have many of this

2015/06/02-xxxxx ERROR: submit: socket error (104)

sometimes

2015/06/02-xxxxx ERROR: unable to retrieve order book for usd on ccedk: exception caught:
2015/06/02-xxxxx ERROR: submit: server could not be reached
2015/06/02-xxxxx ERROR: submit: socket error (104)

but the overall efficiency remain more than 90%. I am using v1.11 LB

Looks like a temporary internet connection outage to me.
The ‘submit’ lines indicate a connection issue between your client and the LiquidBits server. If it was just those I’d say the server might be having issues.
The ccedk line though means your client is having trouble connecting with ccedk. That could just be coincidence but my gut feeling is that it points to a bigger connectivity issue.

Thanks. My orders do show on the order book and I do get pretty high efficienctyso I will leave the connection issue alone – there isn’t much i can do in fact – and run for a while.

LiquidBits reporting overview to 6-Jun-15:

Liquidity provision averages by day:

… …Buy…Sell

19/05/2015 Average 19/05/2015 … 1.569774935 1176.682908
20/05/2015 Average 20/05/2015 … 0 … 1194.7256
21/05/2015 Average 21/05/2015 … 0 … 880.654336
22/05/2015 Average 22/05/2015 … 2.257234151 2843.971076
23/05/2015 Average 23/05/2015 … 28.05928668 2334.604321
24/05/2015 Average 24/05/2015 … 60.71785354 2424.062938
25/05/2015 Average 25/05/2015 … 44.13270417 2605.277237
26/05/2015 Average 26/05/2015 … 12.58655438 2678.987538
27/05/2015 Average 27/05/2015 … 27.13793352 2664.468943
28/05/2015 Average 28/05/2015 … 338.5365633 2336.052065
29/05/2015 Average 29/05/2015 … 473.3448066 2103.706379
30/05/2015 Average 30/05/2015 … 506.9711024 1135.858685
31/05/2015 Average 31/05/2015 … 517.6625768 1208.942379
1/06/2015 No data
2/06/2015 Average … 2/06/2015 … 634.3186706 637.9738955
3/06/2015 Average … 3/06/2015 … 609.580009 637.9367699
4/06/2015 Average … 4/06/2015 … 650.4063924 626.9187951
5/06/2015 Average … 5/06/2015 … 564.8471139 590.8461805
Grand Average period…251.7485524 1672.862675

The master Excel file for the above data with Liquidity provided by the minute can be downloaded here

Data before 19/5 is available but unstructured and due to the issues in that period has large gaps unfortunately and therefore hard to parse automatically. Please leave me a PM if you are interested in the raw logs as I do need to anonymize them before releasing. The log of 1/6 was also incomplete and therefore difficult to parse due to an issue causing a manual payout.

Reporting overview
Total grant LiquidBits (-/- fee): 1,500 NBT
Total payouts to date: 144.7057 NBT (including manual payouts)

Remaining: 1,355.2943 NBT

I’m also glad to report that the pool is finally getting stable and automatically pays out every 24h and that the logging is also stable. Hope to produce some nice charts later on when we have some scripts.

Going forward and extending the timeframe
Given the many outages and probably because of that the relatively low participation, I’m extending the ‘test period’ with another 30 days under the same conditions as the motion in first post. As the total payout to date is minimal, I will cover any payout during this period from my fee where it exceeds the remaining funds. Basically giving away a free ride to the Shareholders for all liquidity provided in the first 30 days. I think that is appropriate as the performance was under par, although not always in my control though.

EUR/NBT and USD/NBT pairs on CCEDK
Arguably the safest deal as no or almost no hedging risks, only exchange default risk here.
Please take note of CCEDK’s offer advertised here: CCEDK signs bank agreement - Zero deposit fees on USD, EUR and CNY next two months. No deposit fees on USD, EUR and CNY for the next two months June and July. There is still plenty of space to participate on both the NBT/USD and NBT/EUR pairs on CCEDK on both sell side and buy side. Interest rate on both pairs continues to be 0.33%/day on both buy and sell side

BTC/NBT pair on Bitcoin.co.id
Proven exchange with good track record, but you will have the hedging risk with BTC, therefore a higher compensation is warranted on the BTC sell side. Also places left here on both sell and buy side. This exchange is our third largest on average with regular, albeit relatively small trades.
Interest rate is 0.38% on sell side and 0.28% on buy side. Why not try it? The compensation for the equivalent of 500 NBT in BTC on sell side after 20 days would be 7.6% = 38 NBT. These offers usually won’t last long!

Want to join the pool?
The instructions to get started on the LiquidBits pool, FAQs and more details are available here:
http://cybnate.github.io/index-liquidbits.html

And please remember:
Don’t risk more than you can afford to lose!

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Thanks @Cybnate for getting the pool stablized and thereby improving TLLP in general. They report sets standard in details, too.

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Please note that there is no more liquidity of Nubits supporting the sell wall of https://www.ccedk.com/nbt-usd since yesterday.

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People are buying nbts. Probably related to B&C auction.

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Interesting development indeed. Now is probably a good time to buy some more NBT and transfer them to the NBT/USD pair on CCEDK and earn 0.33%/day for up to 5k. I think this covers the risk profile of this exchange and includes a healthy margin. There are also opportunities left on the NBT/EUR pair on the same exchange.

However, in any case don’t invest more than you can afford to loose!

Is something wrong with ccedk?
The bot doesn’t run properly…or is it the server?

Not sure what the problem is. My bots are running fine. Maybe a connection issue?

Strange…
On one machine (where the bot ran fine for days) I get

2015/06/14-07:37:05 ERROR: server unresponsive for usd on ccedk
2015/06/14-07:37:05 INFO: stopping PyBot for usd on ccedk
2015/06/14-07:37:06 INFO: successfully deleted all orders for usd on ccedk
2015/06/14-07:37:35 ERROR: server unresponsive for usd on ccedk
2015/06/14-07:37:35 INFO: stopping PyBot for usd on ccedk
2015/06/14-07:37:36 INFO: successfully deleted all orders for usd on ccedk

And on another machine (where I started the bot to test) I get

could not retrieve ccedk ids, server is unreachable <urlopen error [Errno -2] Name or service not known>

On the latter machine I can load the website without any trouble. So DNS seems to be ok.

I tried to use an older version of the bot. Unfortunately I don’t know how to find out the exact version. This bot runs.

The version that stopped working was running since

2015/06/01-16:28:39 INFO: starting PyBot for usd on ccedk

with no major issues (except for temporary socket errors).
Then this message was in the log

2015/06/12-10:14:31 ERROR: server unresponsive for usd on ccedk
2015/06/12-10:14:31 INFO: stopping PyBot for usd on ccedk
2015/06/12-10:14:31 INFO: successfully deleted all orders for usd on ccedk

And from that on the bot was not running and couldn’t be restarted (not this version of the bot).
I don’t think this can be related to only the bot…
How can this version of the bot tun fine for 11 days and then stop without a change at ccedk or the server (to me it looks like ccedk API)?

Strange indeed as my bots are running. Had to restart the EUR/NBT bot yesterday as it had spontaneously reduced my liquidity for some unknown reason. The USD/NBT bot didn’t have a problem at all. There have been no changes on the server since 1 June. Given that my bots still work it sound unlikely that there has been changes to the CCEDK API.
Not sure what is going on. Maybe a restart of your OS is required or refreshing the software as below?

You can find the latest release of software including the bots here: https://github.com/Cybnate/nu-pool/releases. The release is aligned with Nu-pool and you should only need to change the servername (nbt.liquidbits.net), exchange (e.g. ccedk) and pair (e.g. USD for NBT/USD pair).

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Proposal to extend LiquidBits.net TLLP services

After a somewhat rough start things have stabilised and the pool pays out everyday without problems. Therefore I like to propose to continue the TLLP service when there shareholders support me with providing the means.

The main changes are the reduced rates for the CCEDK fiat pairs NBT/EUR and NBT/USD from 0.33%/day to 0.25%/day. Given the low or zero volatility risk and the low trade volumes I think this is still a very attractive rate.

I’ve reduced the NBT/USD pair from 10,000 to 7,500 on CCEDK not being that popular and increased the NBT/BTC pair on Bitcoin.co.id from 2,500 to 5,000 as this exchange is becoming more popular. I’ve left the CCEDK NBT/EUR pair the same at 2,500 NBT maximum paid liquidity aiming for an increase in popularity.


Here is the resulting draft custodial grant:

=##=##=##=##=##=## Custodian Hash starts with this line ##=##=##=##=##=##=

Custodial Address: xxx
Amount Requested:  245 NBT

Custiodial grant request to continue to operate Liquidbits.net, a liquidity pool for NuBits.

@cybnate continues the 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 when a motion to continue operations haven’t passed before.

Liquidity provided by users will be compensated as follows:

  • with up to 7.5% per month (0.25% per day) on CCEDK’s EUR/NBT pair on both sell and buy side to a maximum of 2,500 NBT ( max pay-out 187.50 NBT/30days)

  • with up to 7.5% per month (0.25% per day) on CCEDK’s USD/NBT pair on both sell and buy side to a maximum of 7,500 NBT (max pay-out 562.50 NBT/30 days)

  • with on average 10% per month (0.33% per day) per month on Bitcoin.co.id BTC/NBT pair to a maximum of 5000 NBT in total but split as follows:

  • 0.38% per day up to 2500 NBT on sell side ( max pay-out 285 NBT/30 days)

  • 0.28% per day up to 2500 NBT on buy side ( max pay-out 210 NBT/30 days)

using the pool’s calculations based on the Dutch auction model to allow a fair distribution of returns amongst liquidity providers. 1245 NBT of the requested amount in this grant will be held as reserve to make pay-outs to connected users.

The current grant has 1245 NBT left to date with about 9 days to go at a current payout rate of just under 10 NBT on average. Allowing for a minor increase there will be approx. 1100 NBT left.
Total required 1245 - 1100 = 145 NBT.

Terms and conditions
Pay-outs take place every 24 hours. The minimum pay-out is 1 NBT. The spread continues to be 0.04 with 0.075 tolerance on both exchanges. Operations and pay-outs will start within 3 days after the custodial grant has passed successfully. The pool will continue to operate under the name Liquidbits.net. Remaining funds will be settled with future grants or when the pool is discontinued, burned.

Fee
The pool fee is a one-off 100 NBT and serves as a contribution for the effort of supporting the pool, the website, reporting, supporting the users and the monthly costs of operating the server.

Instructions
Instructions on how to participate in the pool can be found here: http://cybnate.github.io/index-liquidbits.html
Work is underway to improve the website.

=##=##=##=##=##=## Custodian Hash ends with this line ##=##=##=##=##=##=

Please your feedback in the next few days to ensure the continuation of the service. Aiming to post a final version shortly after 30 June (23:59 UTC). The current pool ends in approx. 9 days.

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What’s the tolerance?

I won’t vote for any more custodian grants that don’t give a %.05+fee operating spread on btc pools. That will mean something like a .008 tolerance for you. ( I think ccedk fees are %.01?)

The tolerance setting in the software is 0.075. The spread is 0.2% on either side (total between 0.0325 and 0.475%).
The CCEDK and Bitcoin.co.id fees are different, but without creating multiple instances I can’t cater for that at the moment.

So this proposal purposely goes against the recent motion that was passed constraining offsets on btc pools to be larger than %.5? I will not be voting for it then.

I am aware some people voted for the spread regulation motion because of the core component of disclosure requirements (well, at least @cybnate did), with an understanding that offset/tolerance proposed in individual motions and grant proposals override the original motion. In hindsight it is hard to gauge shareholder agreement like this, so in the near future we still need to refactor the spread regulation motion even though it has passed.

So I won’t go so far as to withhold voting for a different spread. I’m on the fence for a 0.4% spread, though.

Either way:

  • It may be good to mention in your post that CCEDK is offering 0.001% trading fee until early August, which covers this run and helps justify your lower tolerance
  • I guess you want to write 0.004 offset and 0.0075
    tolerance?

The way I understand it, cybnate is saying 0.2% (0.002) offset and 0.4% spread, but I’m not sure.