[Passed] NuPond Term 5 Fixed Cost Motion

[Nagalim]

nah, im gonna demolish that server soon. Use nupond.net:3334 like you used to for fixed reward. The pool is paying out now.

[zoro]

NuPond
Exchanges bter
Monthly interest rates 0.00225%
…
not very appealing
raw.nubits should change the metrics for fixed cost pools.

edit: only rate and ppm in bot’s INFO can give the true instant value.
very impressive, i am between 0.3-0.8 % !!!
this minute value is not helpful though. we will need a mean (hourly?) rate value
in order to search for the most profitable pool

[Nagalim]

raw.nubits

Most of the issue is on server side (my side). I’ll work on it, but I can’t promise it will be done in a timely fashion because I haven’t delved into the complexity of the code yet. The bot runs how it’s supposed to, but I agree that accurately reporting the current rates is a very important feature (one I’m not sure the bot was doing correctly with the dutch auction mechanism anyway).

[zoro]

i see a lot of socket errors. server issues?
one weak point of fixed cost pool is that the bid/ask wall balance isn’t in consideration for payouts.
I mean that it is the same for a user to have 1000 nbt only in ask side and to have 500/500 in both sides, but for NU it is
crucial to have some balance. we have to take care of this issue also

[Nagalim]

? The whole point of fixed cost is to do precisely that. If there is 1,000 nbt on either side with 3 nbt per day payout on each side, the rate is 0.3% per side per day. Then you come along and drop 1,000 on one side. Now you’re making 0.15%/day. If you drop 500 on each instead, you’ll be making 0.2%/day. There is a clear and straightforward incentive for you to keep a balanced pool.

As an extreme example, if I made the cny pool fixed cost, you’d see rates of like 30%/day for sell side and 0.2% for buy side. It would be clear that there is incentive for an LP to try to move funds from buy to sell side.

[zoro]

ok, now i get it. thanks
i made miscalculations before :o

[Nagalim]

0.22%/day either side. Nearly perfectly balanced.

[mhps]

In less than 24 hours of operation, the liquidity attracted, the lower cost reached, the balancedness on both sides, and the real-time report of rate show that so far Fixed Cost ALP is an astounding success.

[Nagalim]

215.4596 left after the first day. 23.0639 NBT were spent in the first 24 hours. 15 of this is the fixed cost pool (in theory, it’s difficult to say for sure without digging through logs), 8 NBT was used for the woefully out of balance fixed reward cny pool.

[Nagalim]

0.2% bid, 0.22% ask.

[mhps]

0.2% bid, 0.22% ask.

In a day this fixed cost pool brought liquidity price down more than previous pools did in many months.

[zoro]

think how nice this could work for poloniex right now. See how thin is the buy wall. Not even NUlagoon is there!
I guess the 40K NBT sellers in polo have problem “transforming” NBT to BTC in order to balanve the walls.
How the unseeded action could work in this case and how fast?

[Nagalim]

Volume in a seeded auction is everything. The speed is what defines it, I cannot even begin to predict what a free market will do before it even exists.

Arbitrage (balancing among tier 1) is just as important as tier 6 auctions. Personally, I think shareholders underestimate tier 5, which is complete and functioning in full.

[Nagalim]

0.17% bid 0.1% ask

[zoro]

the cheapest pool!

[huafei]

run away to other pool

[Nagalim]

0.15% bit, 0.12% ask

Getting the website to work is proving a bit over my head. There are workarounds though, and I’m communicating with Willy to make this process more transparent and automated.

Edit: I tried a minor change to see if I could get it to work easily, restarted the server and did manual payouts and everything, but no dice. I’ll have to coordinate with willy more on this.

[Nagalim]

0.24% bid, 0.07% ask

We are pretty strongly out of balance now from all the volume. It looks like a lot of people are arbitraging off the cny pool, I think I’m going to seriously consider increasing the tolerance on the cny pool to 1.5%

[cryptog]

So that implies the fact that more traders are buying nbt rather than selling on nbt/cny despite the fact that nbt/btc is increasing which would make me think that traders would want to hold btc.
Also, fixed costs are not enough to counterbalance the force exerted by the gain potential induced by arbitrage.

[Nagalim]

People buy nbt with cny, sell it for btc, then sell the btc for cny again. It’s all on-exchange, so it’s not even arbitrage in the traditional sense. Today, we are accounting for nearly 50% of the trade volume on bter. We are the btc/cny market makers on bter.