[Passed] LiquidBits term 4 grant - Automatic Liquidity Pool (ALP)

Proposal RIPEMD160 hash: 3c3d0382f0939d035c0a251ae1fe905972af302f

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

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!

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

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

2-Sept-2015 Custodial grant prepared for voting


Status update

Changes in term 4 compared with term 3

  • Increased pool size of USD/NBT from 10000 to 15000 NBT

  • Increased pool size of EUR/NBT from 3000 to 5000 NBT

  • Increased pool size of BTC/NBT from 2500 to 3000 NBT

Removed Bitcoin.co.id NBT/BTC pair due to delisting

Most pools were utilised and average daily payout went from 15 to almost
25/day with lower rates in term 3.

The average liquidity provided is currently between 10k and 15k and still
growing. Look here for the latest: https://raw.nupool.net/nubits/

Even more liquidity on NBT/USD pair?

I’m considering to increase the USD/NBT pair even further by a separate
grant at the same time. This to gauge the appetite for more liquidity on the
USD/NBT pair on CCEDK.com.

Proposing to increase the USD/NBT pair from 15000 to 20000 NBT basically
doubling from term 3. Additional cost of this would be 300 NBT on top of the
base grant for term 4 (=~976 NBT).

Looking forward to your response.


Term 4 grant terms look fine to me.
I am supporting the idea of providing more liquidity to FIAT pairs.
Therefore, I would support the proposal below:

By the way, on https://raw.nupool.net/nubits/, in LiquidBits EUR, it says “Bid order target 1886.29 NBT filled of maximum 1500 NBT ( 125.75% )”.

  1. Which pair is it? NBT/EUR or EUR/NBT ? More generally, when it says “bid order” or “ask order” regardless of the pool, is it implied that NBT is the first element of the pair?
  2. What happens to the extra liquidity that goes beyond the target? Is it compensated?


No, there is no compensation beyond the target. That is were the Dutch action model kicks in. Everyone gets a share.

1 Like

I’ve just promoted this custodial grant to voting status and moved to the appropriate thread.

Please verify the original post and consider to vote for the continuing operation of the LiquidBits pool.

Here is the information to be added to your client again:

Custodial Address: BAS551CagGVvmjKK4TweEkJ8mPSpymwcDN
Amount Requested: 976 NBT


hex: 3c3d0382f0939d035c0a251ae1fe905972af302f
HEX: 3C3D0382F0939D035C0A251AE1FE905972AF302F
h:e:x: 3c:3d:03:82:f0:93:9d:03:5c:0a:25:1a:e1:fe:90:59:72:af:30:2f
base64: PD0DgvCTnQNcCiUa4f6QWXKvMC8=


Pin this please.

1 Like

I have realized i have not voted and even noticed this grant campaign.

This is the most important formula, but how do you get “1500” above?

Is there any profit left for Shareholders or is the “674” have to be re-allocated to the grant?

Just add all the max payouts in the OP

The “674” left unused is re-allocated to the grant. See the calculation in the OP.

Got it -
So the left “674” could actually be categorized or seen as “profit” of LiquidBits.

I don’t think you can say it is profit, It has been granted, but never used as the pool was not 100% utilised.
When competition really sets in and more than 100% is utliised the rates will come down automatically and the Shareholders pay a lower rate for the liquidity provision. Lower cost is still =/= profit imo. Liquidity provision will always be a cost centre for Shareholders in accountancy terms.

So, among the 674 (or more exactly 962 NBT), there’s not even some bucks that come from the activity of selling/buying NBT with a spread, using NuBot?

No, that’s not how alp’s work. We don’t own any of the nbt bought or sold in an alp.

Ouch - please explain how you make money in this ALP. I’m all ears.

The pool operator only makes money with the operator fee - here called pool fee:

All else is just a grant to have the liquidity providers paid on behalf of the Nu network.

1 Like

Liquidity provision does not make money for Nu, it is an expense. Nu only really ‘makes money’ when its share price goes up or it distributes dividends, like any stock. In that regard, we recently created B&C which was distributed as an effective dividend for pure profit. However, immediately afterward the share price took a serious plummet. We are not really making all that much money just yet, we’re still trying to establish ourselves. Nu is divergent, so it takes a while to get going and when it does it shoots up really quickly.

One way to think about Nu is that we are continually reinvesting our profits into infrastructure currently because we still have a lot of infrastructure to build. It’s still just the first year, and as JL has mentioned we distributed a lot of dividends this year and our share price is hovering approximately at where it was for launch.


Which profit? - we only have expense.