Price spread revenue?


#1

Someone said he can tolerate 0.5-1% loss between NBT buy/sell wall.

I wonder the total volume of our custodians, assume it is 60,000 USD/NBT volume every day. One month is 1,800,000USD volume, if we charge 0.2%, profit is 3600USD/month.

The NBT/BTC is already loose peg, so can we implement loose peg for price spread on FIAT pair in future?


#2

I think it is a bit meagre profit. I don’t think you can maintain the network based on that. Let alone keep shareholders happy. I think we do need other sources of income. Ideally we would make the money we receive (the reserve) work e.g. with interest from loans etc. but that requires NuBits to operate like a bank. Haven’t worked out whether that is a good idea at this stage given the legal implications at least in a number of countries.

Operating services like messaging as you have mentioned is an option, but I don’t think there is big money in that either unless it is really taking off which might create some other headaches to support that.

I don’t see other sources of profit which appeal to me.


#3

Cybnate, How about setting up our own exchange just like Mcxnow but with the help of open transaction?

The exchange has no FIAT account, just use NBT as base crypto, every coin has NBT pair.

BTC/NBT
PPC/NBT
Doge/NBT
LTC/NBT

etc.

Bitcoin, due to its volatility, has no qualification of being a stable base coin at all.

If NBT becomes a base coin, the holding demand built up. You see now we have to prepare some bitcoins for convenience of instant trade sth.


#4

It may be meagre, but it also helps to stabilize the peg against whale traders who move huge volume in and out of BTC/NBT in a matter of minutes, the support of which is not the purpose of NuBits. This proposal imposes a tiny tax on them, which counters this activity while profiting shareholders. It could be a good idea.


#5

Let me be clear, I’m not saying we shouldn’t do this as there are more advantages to it. Just wanted to make a point that this can’t be the only way to keep NuBits running in the long term. Having said that when volumes are getting at Bitcoin levels it will definitely be an interesting revenue stream. But there is a lot of uncertainty when we may get there and how other liquidity providers including the exchanges themselves might behave (e.g. undercutting and competing with us).

Other revenue streams needs to be explored. Partnering with exchanges, running exchanges and maybe even exploring partnering with banks as I said in my previous post and delivering services at cost+margin. In all cases there are still lots of legal hurdles to take or a lot of risk will be involved, but maybe there are people willing to take the legal challenges or the risks to just go with it. There just doesn’t seem to be a queue of volunteers with proposals for custodial grants yet.


#6

Let Bter/CCEDK provide NBT/USD pair and our own exchange provides other pairs, still in partnership.


#7

Cybnate, could you explain the risk of hosting an exchange? I know the hack/attack problem but what’s the regulation risk? Do we need to expose our ID?


#8

Who would trust an exchange when not knowing those who run it?
Wait - that’s just like it is with btc-e and lots of other exchanges…
…but anyway; I don’t like cenrtalized exchanges very much :slight_smile:


#9

Open transaction, semi centralized exchange can be achieved by combining 12 servers(a voting pool)from different anonymous parties.
Users’ crypto coins are multisiged stored in blockchain. As long as 8 out of 12 servers are honest, the deposite can’t be stolen.

How about 12 NSR holders build up a voting pool? Each proves himself/herself having 5 million NSR in a address, and get checked by the public. With same interest, 12 holders set up Nuexchange where all other cryptos trade with NBT. We can invite other exchanges such as Bter/CCEDK join our voting pool.

Edit: 12 NSR holders deposit their NSR with multisiginature. If one or three persons get corrupt or private key stolen, others can take control of their NSR and their control power within open transaction. NBT is stable, so in this voting pool exchange every coin get “FIAT” pair.