[Passed] LiquidBits term 3 Trusted Network Liquidity Pool

Proposal RIPEMD160 hash: ab2bfc66cae2e8dead0c5fcae1e0724a24f87e5e

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Custodial Address: BLaCCX2ZmGe68MwrrrRCkpNvJLjsvBk4ik
Amount Requested: 596 NBT

LiquidBits term 3

Custodial grant request to continue to operate LiquidBits.net, a liquidity pool for NuBits based on network trust.

The independent network trusted liquidity pool (TLLP) will provide liquidity on the EUR/NBT, USD/NBT and BTC/NBT markets on both CCEDK.com and Bitcoin.co.id. A target of 10,250 NBT on the bid and ask side of the order books will be provided by the pool split over 4 currency pairs, resulting in a total maximum compensated liquidity of 20,500 NBT. The operation will end after thirty (30) days when a motion or grant to continue operations haven’t passed before.

Liquidity provided by users will be compensated as follows:

with up to 6.6% per month (0.22% per day) on CCEDK’s EUR/NBT pair on both sell and buy side to a maximum of 3,000 NBT ( max pay-out 198 NBT/30 days)

with up to 6% per month (0.20% per day) on CCEDK’s USD/NBT pair on both sell and buy side to a maximum of 10,000 NBT (max pay-out 600 NBT/30 days)

with on average 9% per month (0.30% per day) per month on CCEDK’s BTC/NBT pair to a maximum of 2500 NBT in total but split as follows:

0.35% per day up to 1250 NBT on sell side ( max pay-out 131.25 NBT/30 days)

0.25% per day up to 1250 NBT on buy side ( max pay-out 93.75 NBT/30 days)

with on average 9% per month (0.30% per day) per month on Bitcoin.co.id BTC/NBT pair to a maximum of 5000 NBT in total but split as follows:

0.35% per day up to 2500 NBT on sell side ( max pay-out 262.50 NBT/30 days)

0.25% per day up to 2500 NBT on buy side ( max pay-out 187.50 NBT/30 days)

using the pool’s calculations based on the Dutch auction model to allow a fair distribution of returns amongst liquidity providers. 1473.00 NBT of the requested amount in this grant will be held as reserve to make pay-outs to connected users.

Breakdown grant amount

The current grant has 1237 NBT left as of 26 July UTC with about 15 days to go at a current payout rate of 14 NBT on average. 15 * 14 = 210 NBT. Allowing for a minor increase there will be approx. 1237 - 210 = 1027 NBT left. Total required 1473 + 150 (fee) - 1027 (left) = 596 NBT.

Terms and conditions

Pay-outs take place every 24 hours. The minimum pay-out is 1 NBT. The spread continues to be 2% on either side with 0.0075 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.


The pool fee is a one-off 150 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 on how to participate in the pool can be found here: http://cybnate.github.io/index-liquidbits.html

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 trust less 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 pairs a particular high risk due to BTC’s high volatility. Therefore the compensation on the riskier pairs is higher.

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.

Due to the potential confusing term trustless (without trust?), I’ve decided to market LiquidBits no longer as a trustless liquidity pool, but as a Network Trusted Liquidity Pool (NTLP). I think that better reflects what it actually is. Instead of a 3rd Party the LiquidBits pool trusts the Nu network, the Shareholders and the protocol.

Bump, voting is only on 25%. Did Shareholders perhaps miss this grant request or is it really not attractive enough?

I am a bit late on this one.

ab2bfc66cae2e8dead0c5fcae1e0724a24f87e5e verified and voted .


Bueller? Bueller?

This grant passed 8 Aug 2015 07:00:17

1 Like

@cybnate I just noticed that you’re calling it an “independent network trusted liquidity pool”.
Can you explain why?

I’m especially interested in the “trusted” part.

Tried to answer it here in the OP.

Hope that clarifies it. I’m getting increasingly uncomfortable with the term trustless which is only properly understood by a small group of insiders. We are talking trust in a network protocol instead of a bank or third party. With NTLP you don’t need to directly trust the person(s) behind it. I’m open for better terminology than the one I coined which I borrowed from Andreas A.

BTW Thanks for voting for this renewal, the new terms will be introduced on 11 August UTC.

BTW2 There are still issues with teh CCEDK pairs. I understand that they will look into it next week due to holidays and other priorities. Please be aware that the pairs are therefore paid less (around 25%) than they should as the bot can’t confirm the liquidity properly at all times due to time-outs.

Trustless in Trustless liquidity pool means you does not need to trust the pool manager as a pool participant, in my understanding.

Try someone outside of Nu and they will have a different perspective of trustless I’ve learned. It is not a great marketing term.

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I think you are totally right.

Thinking about it, Trusted Network Liquidity Pool might be even better than Network Trusted Liquidity Pool, but we are getting into semantics here.

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We need to define a term for nulagoon too. Network Trusted Liquidity Pool instead of tllp, Operator Trusted Liquidity Pool for NuLagoon?


Good discussion, I have no objections so far.

yesss. TNLP sounds fine.

Also very good!

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When will this roll out again?
I see the new pair on the raw feed, but it appears the new targets and compensation has not been implemented.

Cybnate told me she will restart the sever tomorrow

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The LiquidBits server has just been reset to reflect the new setting as per custodial grant in the OP.

Please take notice of the new NBT/BTC pair on CCEDK which is now open for business.

Thanks for your consideration.