This proposal has been updated based on the feedback of community members and the discussion that follows the first post.
The major changes are that the target liquidity for this run over two exchanges will be 70,000 NBT and not the 100,000 NBT proposed in the draft.
The fee will be reduced to 700 NBT in line with this.
This fee is asked for as a lot of suplimentary work will go into this run. We will be posting on other communities and answering the inevitable questions that arise there. We will also be drafting FAQs, HowTos and other supoprting documentation which will benefit not only NuPool, but other TLLP operations that follow.
All this means that the total amount requested for this grant will be 7,000 NBT. This is inline with Jordans comments that 10,000 NBT seems a fair comepnsation for Liquidity at this current time. With the other pools in operation, 7,000 NBT for NuPool takes the total network spend to ~10,000 NBT.
Following a successful run on Bittrex the NuPool team would like to expand the operations of the TLLP. This second grant will allow for an extension of the running period, an increased target for provided liquidity and expansion onto other exchanges.
Please note, that @creon is no longer involved with this project.
We would like to ask for another 30 day term, as we still cautiously consider the software as "beta."
This 30 day term will begin at the earliest point after the first period ends on May 14th 2015 or whenever this grant passes after that. The official beginning of the second term will be announced on the NuBits forum.
In the first run, the liquidity targets were easily met solely by users from this forum who were aware of the pools existance and operation. For this next run, we want to put a larger emphasis on attracting liquidity providers from outside of the Nu community. We would like to make liquidity provision an attractive and financially viable alternative to mining as this will attract and keep these external providers, enhance the visibility of Nu in these other communities and help make the peg more secure.
We would also like to show that operating a pool can have financial benefits for the operator as this should prompt other to start their own pools. That will drive competition and result in cheaper liquidity for Shareholders. These wants are reflected in the terms of the operation and, this being a draft, we would welcome comment on them as ideas before starting the vote on this proposal.
We have done some maths on the amount of funds left over from the first run. We will be left with ~138 NuBits once the 30 day operation period is over (this assumes that target liquidity has been reached continuously for the next 7 days. Hence the ~). As per the conditions of the first grant proposal, these funds will be removed from the amount requested in this proposal
Proposal RIPEMD160 hash: 9a13182e18122bafb5c21374b3355880ac6291fc
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Custodial Address: BNUPooL5Q4THaAQV3gz3tuPuagVaiwtCaK
Amount Requested: 6,862 NBT
We (@woolly_sammoth and @willy) will continue to provide our TLLP server on nupool.net for 30 days. The operation on Bittrex.com’ BTC/NBT pair will persist with an increased liquidity target of 35,000 NBT split equally between the buy and sell side.
Secondly, we would like to expand our operation to Poloniex.com to provide liquidity on their BTC/NBT pair. The liquidity target on Poloniex will also be 35,000 NBT split equally between buy and sell side.
In order to provide an attractive offering to external liquidity providers, we would like to increase the maximum interest offered to our pool participants to 9% per month or 0.3% per day.
The pool fee will be 700 NBT and will be used to fund time spent on supporting documentation and outreach to other communities to promote liquidity operations within Nu.
As with the last proposal, funds that remain at the end of the 30 days will be rolled over into the next proposal or burned should NuPool cease operation.
Here are the figures:
- 70,000 NBT total liquidity target
- 2 Exchanges, Bittrex and Poloniex
- Funds to compensate pool participants: 6,300 NBT (9%)
- Pool fee: 700 NBT (1%)
- Total of 7,000 NBT (10% total fee)
- Asking total of 6,862 NBT (7,000 - 138)
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