[Passed] Nupond Term 9

[Nagalim]

https://daology.org/proposals/35f24060bab55a5a6651572bf8934487106a9369

Hash: ee85c799d173af4494953ecbce22c7ac8d237654

Custodial Address: BEv74GNRYyAeRJbXxjQvbbS48E7YvDgfs6
Amount Requested: 450 NBT

Operator: @Nagalim
Type: 2 Fixed Cost ALPs
Pool and Term: NuPond Term 9
Exchange: Bter.com
Pair: NBT/CNY & NBT/BTC
Start: April 1st
End: April 30th
Tolerance: 1.5% CNY & 1% BTC
Spread After Fees: 1% for Both
Bid/Ask Reward Rate for BTC: 2 NBT/day
Bid/Ask Reward Rate for CNY: 5 NBT/day
Total Grant Without Operator Fees: 420 NBT
Previous Operator Fees: 100 NBT
Rollover Funds: 70 NBT
Current Total Operator Fees for Next Term: 100 NBT

NuPond may switch to ALP v2 when the operator is confident of the implimentation. Targets of 500 nbt total for the CNY pool and 200 nbt total for the BTC pool will be used for the CRFC model. 1 week of warning will be given to LPs using the normal channels. NuPond may switch back to ALP v1 at will if confidence is lost.

[Cybnate]

I recommend adding the maximum amount on both pairs which receive rewards. Especially given the issues with BTER, there is a risk of paying a premium for liquidity and on top having an unfavourable large 1% spread on a fiat pair.

[Nagalim]

I recommend adding the maximum amount on both pairs which receive rewards

I’m not sure I understand what that means. Maximum amount of what?

large 1% spread on a fiat pair

The CNY price feed is calculated using BTC prices. The volatility on the CNY pool is similar to that of a BTC pool.

[huafei]

but CNY deposit no 1% reward , and still pay 0.5% fee to withdraw

[Cybnate]

Maximum amount of what?

Maximum amount of liquidity provided which is rewarded at the advertised rate.
At the end of the day the liquidity provided counts, it would be good to have the targets clear for NuPond.

[Nagalim]

Why do i want to limit the amount of liquidity ill accept?

Are you asking me to edit the software again? Cause im probably gonna decline to do that with alp v2 basically already released. If shareholders refuse to vote for a fixed cost motion then I guess ill just stop operating nupond until im comfortable with the nubot software. However, if shareholders refuse to vote for fixed cost then i will refuse to vote for fixed reward, because i think it’s too expensive in its own way. So that basically sounds to me like goodbye pybot.

[Cybnate]

Why do i want to limit the amount of liquidity ill accept?

I don’t want to limit it, I just want to understand it.

[masterOfDisaster]

I just want to understand it.

As a reminder: FC is different from “dutch auction” in the way that it provides a flat amount of NBT per time no matter how much liquidity is provided.
The more liquidity, the lower the reward per provided USD liquidity.

if shareholders refuse to vote for fixed cost then i will refuse to vote for fixed reward, because i think it’s too expensive in its own way

If shareholders had to decide “fixed cost” XOR “fixed reward”, fixed cost would be the obvious choice, if they really think as a corporation with accounting and cost control…
…it would be wise to prefer FC to FR, because only with FC you have effective cost control - unless I mess something up.
Gladly there’s CRFC around the corner, which will bring the best of both worlds

[Cybnate]

The more liquidity, the lower the reward per provided USD liquidity.

Ok, I need to state my question in a different way then as I’m trying to compare this with other grants in order to assess its value for money. The funding is not unlimited with FC (Fixed cost), the amount of potentially provided liquidity is. So if we assume the same rate as LiquidBits NBT/BTC pair of 0.20%/day how much liquidity will be provided on behalf of the Shareholders?

[Nagalim]

You’re asking a fixed reward question. The better question is what is the incrntive to rebalance? If you want to do the fixed reward math it’s pretty straight up, 5/0.002 = 2.5k and 2/.002= 1k, so 2.5k per side for cny and 1k per side for btc. However, liquidity is not just magnitude, it is rebalance efficiency. So a very pertinent question is how often would a side on either pool would be at 0. So far, that has happened very rarely in term 8 (like <.1% on either pool), and i would like to tout that as a powerful figure of merit. Especially considering how cheap the btc pool is running.

[masterOfDisaster]

liquidity is not just magnitude, it is rebalance efficiency

[cryptog]

Looks reasonable.

[Nagalim]

Updated to include ALP v2 clause. Please remember that FC is equivalent to CRFC targets of 0, so these targets are more conservative for shareholders than the grant as it stands for FC. I will be hashing this tomorrow.

[Nagalim]

Up for voting.

BEv74GNRYyAeRJbXxjQvbbS48E7YvDgfs6 | 450 NBT

By the way, @CoinGame , formatting on daology is an absolute nightmare. Doublespace then enter required to get a new line? Seriously? What is this, reddit? Why does < BR > not work?

[cryptog]

This proposal further reduces cost compared to Term 8 and implements ALP v2.
Let us give it a try and see ALP v2 is more cost-efficient than ALP v1.
Voted.

[CoinGame]

It’s not a daology thing it’s a markdown thing. Reddit has their own flavor of markup parsing, but we try to reflect github flavored markdown. It will make more sense when syncing to github is implemented.

[crypto_coiner]

Added to my data feed

[Cybnate]

Start: April 1st
End: April 30th
Tolerance: 1.5% CNY & 1% BTC
Spread After Fees: 1% for Both
Bid/Ask Reward Rate for BTC: 2 NBT/day
Bid/Ask Reward Rate for CNY: 5 NBT/day

I think you made a calculation error assuming this is a 30-day grant as advertised.
2 x 30 = 60 NBT + 5 x 30 = 180. Total 210 NBT for 30 days

[Nagalim]

2230 + 2530 = 420
There are 2 sides to each pool. It’s about 1/3 the cost of previous operations and the same size as the last one.

[Passed] NuPond Term 8

Bid/Ask Reward Rate for BTC: 2 NBT/day
Bid/Ask Reward Rate for CNY: 5 NBT/day
Total Grant Without Operator Fees: 420 NBT

[Passed] NuPond Term 6 Grant

Bid Reward Rate: 10 NBT/day for Each
Ask Reward Rate: 10 NBT/day for Each
Total Home Grant Without Operator Fees: 1200 NBT

[Cybnate]

Thanks for clarifying that. Only issue I have with it is the large spread. I believe ALPs should just have a small spread.
Will support it for another round knowing that an ALP on BTER has its difficulties. Let’s see how it is valued by the traders.