Proposal RIPEMD160 hash: 3c3d0382f0939d035c0a251ae1fe905972af302f
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Custodial Address: BAS551CagGVvmjKK4TweEkJ8mPSpymwcDN
Amount Requested: 976 NBT
Funding request to operate Liquidbits.net, an automatic liquidity pool for NuBits.
LiquidBits term 4
Custodial grant request to continue to operate LiquidBits.net, an automatic liquidity pool for NuBits.
The independent automatic liquidity pool (ALP, also known as TLLP) will provide liquidity on the EUR/NBT, USD/NBT and BTC/NBT markets on CCEDK.com. A target of 11,500 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 compensated liquidity of 23,000 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 5,000 NBT ( max pay-out 330 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 15,000 NBT (max pay-out 900 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 3000 NBT in total but split as follows:
0.35% per day up to 1500 NBT on sell side ( max pay-out 157.50 NBT/30 days)
0.25% per day up to 1500 NBT on buy side ( max pay-out 112.50 NBT/30 days)
using the pool’s calculations based on the Dutch auction model to allow afair distribution of returns amongst liquidity providers. 1500.00 NBT of therequested amount in this grant will be held as reserve to make pay-outs toconnected users.
Note: the Bitcoin.co.id BTC/NBT pair pool will be terminated by 10 September (or when this grant passes) because the pair will be delisted from the exchange.
Breakdown grant amount
The current grant has 962 NBT left as of 29 Aug UTC with about 12 days to goat a current payout rate of 24 NBT on average. 12 * 24 = 288 NBT. Allowing fora minor increase there will be approx. 962 - 288 = 674 NBT left. Total required1500 + 150 (fee) - 674 (left) = 976 NBT.
Terms and conditions
Pay-outs take place every 24 hours. The minimum pay-out is 1 NBT. The spreadcontinues to be 2% on either side with 0.0075 tolerance. Operations andpay-outs will start within 3 days after the custodial grant has passedsuccessfully. The pool will continue to operate under the name LiquidBits.net.Remaining funds will be settled with future grants or when the pool isdiscontinued, burned.
The pool fee is a one-off 150 NBT and serves as a contribution for theeffort of supporting the pool, the website, reporting, supporting the users andthe monthly costs of operating the server.
InstructionsInstructions on how to participate in the pool can be found here: http://cybnate.github.io/index-liquidbits.html1
Disclaimer and risksThe 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 compensationon 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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2-Sept-2015 Custodial grant prepared for voting