[Passed] LiquidBits term 7 grant (updated) - Automatic Liquidity Pool (ALP)

NuShares Passed Grants
#1

Based on the discussions and the feedback in this thread I came to the conclusion that increasing the fiat liquidity pools and decreasing the reward is the way to go.

The details of the final proposal are posted here:
https://daology.org/proposals/f6349c0339f210f4a26a91acc10b085a03640a9b
Hash: 1e46d216fbc88f7a8348baf46e01095253ab53a9

Please add the following to your client when you support this:

B954pkUEdkeT1G5Lq14Cisij5no3RVxHYe , 650

Key changes from term 6 in term7-v2 of proposal (this proposal):

  • Increased maximum from 5000 NBT to 7500 NBT on NBT/USD pair
  • Increased maximum from 2500 NBT to 3750 NBT on NBT/EUR pair
  • Decreased maximum from 1000 NBT to 500 NBT on NBT/BTC pair
  • Decreased payout from 0.18% to 0.14% for NBT/USD pair (-/- 33%)
  • Decreased payout from 0.20% to 0.15% for NBT/EUR pair (-/- 33%)
  • Decreased payout from 0.24% to 0.20% on average for NBT/BTC pair (-/- 20%)

The changes are aimed at increasing liquidity while decreasing the liquidity cost per unit. Except for the NBT/BTC pair as I believe this might be better supported with the gateways and a larger spread.

3 Likes
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[Passed] LiquidBits term 7 (addendum)
[Superseded] LiquidBits term 7 grant - Automatic Liquidity Pool (ALP)
#2

14% and 15% should br exchanged?
’

1 Like
#3

Well spotted. Just changed it in OP.
The calculation in the detailed proposal is correct though. It is just swapped in the key changes overview. I will leave it as is on Daology otherwise I will have to change the hash, which might create even more confusion. Should have left out those change overviews from Daology.

#4

I support experimenting this decrease of reward to make traders pay the price because they would be forced to use gateways more often which entails more spread.

B954pkUEdkeT1G5Lq14Cisij5no3RVxHYe , 650 voted.

2 Likes
#5

server is down!

#6

Hmm, just had to stop and start server.py to make it work again. It was in some kind of loop, will see if I can get any wiser from the logs.

Edit: encountered the “list index out of range” again. I’m afraid I can’t do much about that. One of the known bugs occurring once in a while.

#7

Seeing that my proposal is struggling around 30% of the votes.

@crypto_coiner any reason why you haven’t added this to your datafeed?
Any other shareholders wishing to comment? Is it time to shut down LiquidBits maybe? Did you miss this proposal?

#8

Apologizes for the delay.
Just thought I would re-study under the hood http://cybnate.github.io/index-liquidbits.html
and:
https://www.ccedk.com/nbt-usd
https://www.ccedk.com/nbt-btc
https://www.ccedk.com/nbt-eur

Could you provide more information about:
Who is using the 3 pairs?
How much profit you made on each pair on the last run with liquidBits?

#9

Profit’s a weird word. Eur and usd havent really moved, so every trade times saf plus pool rewards minus opportunity costs.

#10

Can any of the pool operators answer these questions?

#11

I would be happy to answer, but…

No, none of the ALP operators have this information. The information is with anonymous LPs.
The best I can deliver is the amount of liquidity provided by all LPs together by pair during a certain period. Not sure how valuable that is given the amount of work it requires. You can also see this information in real-time on Alix.

#12

As an ALP provider in CCEDK in 3 pairs i can say that i see movements in all of the pairs.
They aren’t very frequesnt but they exist.

#13

You probably meant as a Liquidity Provider (LP) ? Some confusion in terminology here maybe?

#14

yes, sorry. i corrected it.

#15

The current grant has 915 NBT left as of 30 Jan UTC with about 10 days
to go at a current payout rate of 20 NBT on average. 10 * 20 = 200 NBT.
Therefore there will be approx. 915- 200 = 715 NBT left for rollover.

Could we deduce that the current run would have lost (not earned) at least 200NBT?

#16

The current period (term 6) I didn’t spend about 200 NBT granted to provide liquidity against the highest rate.

The reasons for this are:

  • Due to competition on some pairs the reward rate has actually been lower (Dutch auction)
  • The LPs did not provide the maximum amount of liquidity at all times (e.g. due to bot issues or just moving their money)
  • LiquidBits had at least two outages for a couple of hours and there was no liquidity rewarded during that period (no logs).
#17

How can nbt/usd have fluctuations?

#18

Did I say that? Not sure what context you mean. It can have fluctuations in rewards or whether pool is underutllised. The USD/NBT rate doesn’t fluctuate of course :slight_smile:

#19

Zoro said he saw movement on all three pairs. I suppose he meant trades though and i misunderstood.

#20

It appears to me that the current grant is not going to pass any time soon, still staying way below the 40% mark and technically the previous one has expired by now. I regret that but accept the Shareholders’ wishes.

Proposed road to winding down
I suggest to initiate winding down LiquidBits as follows:

  • When in the next few days the number of votes doesn’t exceed 50% on a daily bases I will half the daily rewards by reducing the maximum amounts closely after Saturday, 20 February Noon (UTC). A week afterwards I will stop the ALP services provided by LiquidBits all together.

This allows an orderly wind down of the service which existed for almost a year. The remaining funds will be burnt as per the current grant.

Open to other suggestions.

1 Like