I cannot answer this, but I can say what my I terpretation of that motion was. It was defining what we accept as our standard for how much we want LP’s to get as income from the volume. That definition says that the actual default ‘offset’ parameter in our pool software branches use the motion specified ‘0.5% + fees’.
To accomplish this, we need to give the bots room for their wide spread in addition to the room required for the basic function of using a price feed. I think the deviation should be between 0.2% and 0.3%, but I am not nearly confident enough to cement that in motion. In addition, I imagine the possibility for the server price to differ from the client price. Therefore:
To achieve Spread-After-Fees = 1%
We want Offset = 0.7%
With Deviation = 0.25%
Use Tolerance = 1%
LP’s can totally tighten up the parameters for additional spread, but most won’t and getting your order filled is actually a boon with high spread, not a curse. Additionally, it becomes obvious if someone is using a drastically wider spread and the default parameters can be refined with time if LP’s complain.
I know LP’s aren’t complaining now, but shareholders are complaining about the rates.
I hear what you’re saying and agree that it is unlikely to be the LPs who complain if the pool is operating with unnecessarily beneficial parameters.
I think I need to have a good re-read of the motion you linked to and carry on the conversation you’ve started with all the pool operators, and wider shareholders, to see what is the best course of action.
With the operation of NuPool, we had planned to use this operation to try some different things to previous NuPool runs. Unfortunately time ran away and we thought it best to just continue for another 30 days and use that time to assess what changes to make.
The things we had discussed were: Extending the operational period to 60 days, Expanding to operate on different exchanges (southXchange was the one in mind), Setting different targets and different rates.
Given the comments in this thread I think that we should definitely look at making some calculated changes to the operations of NuPool to take them and the other changes on board.
I think @woolly_sammoth has given the reason for the share holders not complaining more - a lot of them don’t understand enough of the mathematical basics of liquidity providing. So it might “feel” for them like something isn’t right, but pnly few can name what’s wrong.
Thank you, @nagalim, for hearing the complaints and trying to bring the interests of LPs and NSR holders on a measurable and fair level.
That’s very far-sighted! Risking trouble between Nu and the LPs could lead to dangerous situations…
I confirm. I tried several times to wrap my mind around the parameters but did not get to grasp the concrete meaning. Therefore I cannot take decisions about whether certain parameters are too expensive for a certain risk and potential reward.
That was the point of that motion: to avoid talking about complicated parameters and get at what shareholders actually care about: the spread after fees. If we choose a particular spread after fees, which is a very quantitative and understandable quantity, the rest of the parameters are chosen for us.
The pool operators, at least, should know what ‘tolerance’ is and should be proposong both a tolerance and a proposed default spread-after-fees that corresponds to that tolerance in every grant proposal. Currently, pool operators are proposing the tolerance, which is great for anyone who knows the math, but they should give the spread-after-fees too (or equivalently the offset) because it’s vastly simpler for shareholders to understand.
I think this depends on whom you ask
My understanding is that the proper way to do an implementation like this, is
discuss it
create a motion/grant
wait until it passes
raise or dedicate funds according to motion/grant
implement the change
test it
let the minters switch to the new protocol
As you can see the NSR holders (who mint) can ultimately determine whether the Nu network switches to that fork.
It would be wise - and so far I have seen a lot of wise behaviour in the Nu network - to include NSR holders right from the start.
As this type of change provides incredible scalability benefit it’s worthwhile to start a discussion about that before it starts to be necessary.
NSR holders can be glad that the Nu network is still in its infancy (giving room for changes like this) - although I think some very important steps have already been made.
How did the cryptonite idea finds its way into this topic? I think the last posts should be moved to the appropriate thread, don’t you think @crypto_coiner?
