Here is my context for evaluating what the maximum should be:
We ought to have around 100,000 NBT total liquidity at this time, as the best balance between cost and securing the peg. At today’s market rates that will cost us ~8500 NBT per month. Once we reach 100,000 NBT in decentralized and counterparty risk free liquidity, then we can begin to reduce rates, so the quantity of liquidity will rise above 100,000 NBT.
With the assumption we will have three pools (NuPool, NuLagoon and LiquidBits), we should cap each so that it can’t constitute the majority of liquidity. For this reason, I propose a change to the draft motion to make the monthly cap 4,000 NBT. This is by no means intended to be a permanent figure, and I expect it will be revisited in a number of months.
The cost of liquidity is high right now, but I am certain we will see it drop as this market develops. While no one knows, my guess is we will eventually see liquidity costs drop below 1% per month.