[Passed] NuSafe - An 30k hedge of Tier 4 funds in USD

[Nagalim]

Yah. The arguments have mostly been about the BKS collateral used to secure the $30k USD contract with @Dhume, the magnitude of the hedge, and the fee. @Dhume conceded to a somewhat generous offer compared to the starting offer.

[cryptog]

In that case, I think this motion is reasonable. It would help Nu protect the peg in case of a black swan event in which bitcoin undergoes a huge decreased in price.

e3966c4205ebb2966110218435ad21d9c5c8f2c0 voted.

[Nagalim]

Congrats. Now we need to talk about who will hold your BKS. Does BKS multisig exist?

[zoro]

I am excited to see how this will proceed.
About the colateral, what coins can flot accepts?
Whatever has multisig addresses?
I am thinking to try something like this with much smaller amount

[masterOfDisaster]

Does BKS multisig exist?

BCE RPC says yes:

bcexchanged help | head -n 8
addmultisigaddress <nrequired> <'["key","key"]'> [account]
backupwallet <destination>
burn <amount> <unit> [comment]
checkwallet
createmultisig nrequired ["key",...]
createrawtransaction [{"txid":txid,"vout":n},...]{address:amount,...}
decoderawtransaction <hex string>

[Dhume]

I’m very excited this has passed and within roughly 18000 blocks as well, this strong support strengthens my belief that holding USD over BTC for reserve purposes is desired by many. I would like to thank all shareholders who voted for this motion.

I have send out a message to FLOT to create a 5 out of 7 BKS multisig address (as the motion dictates I will not be part of this multisig) for the BKS collateral. When the address is created I will send a few test BKS to insure that everything is working as intended and so FLOT can do a test transaction. When completed successfully I will transfer the full collateral in BKS and request 30.000 USD in BTC from @Jordanlee. I will inform shareholders of the proceedings in this thread.

[JordanLee]

@Dhume will use the funds incase all other T4 funds are depleted and the peg is in danger to refill FLOT T4 reserves. He will coordinate such action with FLOT and publicly announce and account if this action is ever to be taken.

With only 11 BTC in tier 4 right now, there isn’t any question in my mind that now is an appropriate time for the full deployment of NuSafe funds to refill tier 4 reserves. I would like to see $15,000 in BTC transferred to FLOT and $15,000 in BTC transferred to my NuLagoon Tube paired address beginning in 15nBBD. If you decide to allocate it differently that is fine, so long as it makes it into tier 4 somehow.

[Dhume]

I am currently on the road (on mobile) and wasn’t supposed to return until monday I have changed my plans and will be home tommorow (due to ip restrictions I can only acces the account from my home address). I can send the funds tommorow afternoon, unless a different request comes along I will send the funds to above mentioned addresses.

[masterOfDisaster]

The current liquidity situation looks like this:

Oh my god, no orders at Poloniex!
Don’t worry, $9,000 add up to the bid side. They are not reported by ALix, because they have an increased spread:

status of zoro dual side NuBot at Poloniex:
nud getliquidityinfo B | grep BJs4YbtaqCmxeHLiR6zzjnZEotYVFAPfMo -A 2
        "BJs4YbtaqCmxeHLiR6zzjnZEotYVFAPfMo" : {
            "buy" : 9029.16,
            "sell" : 11400.701

Btw. - those funds were merely reduced by a few hundred USD today when Poloniex had practically no funds on bid side at a tight spread.

Following your motion

@Dhume will use the funds incase all other T4 funds are depleted and the peg is in danger to refill FLOT T4 reserves. He will coordinate such action with FLOT and publicly announce and account if this action is ever to be taken.

I recommend that we initiate a discussion amongst FLOT members.

I see some need for activating the funds, but it’s almost sure that the regulations from “Standard and Core” motion kick in this week and NSR get sold to replenish the buy side. Then again this will not bring enough funds to make the T4 reserve look good.

We could as well wait some more to see what happens next - we have some time, because we still have gateways, which by the way hold some BTC.
And as soon as BTC drops, it will look better. Do we want to gamble on that?

If we just want to make the books look better, let @zoro terminate the Poloniex operation, I have roughly 2 BTC at hitBTC, @Cybnate has funds at Bittrex and Poloniex.
Except for hitBTC I dare say, we need the BTC where they are, though!
I was rather trying to imply that it doesn’t look as bad as it might appear at first glance because the major exchanges NuLagoon Tube and Poloniex don’t look very bad, while the rest of the liquidity network is in no perfect condition.

Terminating NuLagoon now will once more show how BTC volatility is a problem.
@Dhume, please remind me: how many BTC did you get from Nu to convert them to USD?

I fear we seriously need to consider activating NuSafe.
@cryptog, @dysconnect, @jooize, @mhps, @ttutdxh, @woodstockmerkle, what do you say?

[JordanLee]

I can send the funds tomorrow afternoon

Thanks @Dhume. Can you clarfity what time that will be UTC or some other specific time zone please?

[masterOfDisaster]

Trying to act like having governance we should at least wait for some more FLOT members.
@Dhume seems to be in favour of activating NuSafe and I’m inclined to be on the same side.
That makes 2 of 8. Not exactly what I call consensus.

[jooize]

From my understanding this is what NuSafe was created for. I’m in favor of using it.

3 of 8.

[masterOfDisaster]

@FLOT (@cryptog, @dysconnect, @jooize, @mhps, @ttutdxh, @woodstockmerkle, @Dhume)

please have a look at

[ANN] NuLagoon Tube's Offset to 5%, and NuLagoon's Commitment to NuBits's Liquidity

We realized there are two BTC txs sent out by Tube are not confirmed for many hours. After investigation, the reason turn out to be a CashWithdraw TX which is set a fee much lower than 0.0001. We are really sorry about that. We already raised the bitcoin fee for auto tx to 0.0001. that CashWithdraw is manually generated. It is a mistake to set a low fee like that in the TX.Now, it seems we have to wait the TX be confirmed. But we believe it woun't happen in future. Thanks for using the tube

and the succeeding posts.
Is the liquidty situation not as bad as it seems?

[Nagalim]

I think I should count. I say we sell NuSafe.

[ttutdxh]

I say go. 4 of 8 FLOT for it.

[mhps]

I think we should sell half of NuSafe and put it under FLOT control.

[cryptog]

I am ok also with selling half of NuSafe and put the btc proceeds under FLOT control for replenishing the buy side quickly
But at the same time we need to start selling some NSRs to replenish the reserve.

[Dhume]

Okay guys, I’ve bought for an average price of 498.37$ (including transaction costs) this has resulted in 60,196 BTC in my possesion. Where do they need to go?

[Nagalim]

tube+flot

[Dhume]

I dont have a paired address for the tube though, so should I send all to FLOT and then make a transaction to send part of the funds to the tube afterwards (50/50 split)?