xjabc, who may become an LPC, has pointed out that right now it is quite difficult to deposit BTC or PPC on BTER or CCEDK and convert it to USD in significant quantities at reasonable prices. For this reason he suggested providing relatively modest liquidity himself.
Right now KTm is our only LPC. This lacks the redundancy our network requires to function reliably. So, I suggest LPCs that want to provide relatively modest amounts of liquidity present a proposal to shareholders. Ask for generous compensation to cover the costs of converting from BTC to USD at unfavorable prices. The $5000 of liquidity you provide will look quite significant when KTm’s NuBot experiences an unexpected service interruption.
“Unfavorable prices” at the CCEDK exchange? That exchange doesn’t suffer from low liquidity, it suffers from no liquidity. It’s impossible to convert $5000 of BTC into USD on that exchange, because there are currently zero buy offers on the BTC/USD order book. See https://www.ccedk.com/btc-usd
What is the best way to get USD onto that exchange for buy support, other than the direct the sale of NBT, which KTm already has covered?
I would like to offer 2,000,000 NSR to each of the next three people that get elected as a liquidity provider custodian and provide 20,000 NBT in liquidity for 30 days. LPCs can get a proportional amount of NSR for any smaller amount of liquidity provided for 30 days. So, 500,000 NSR for 5,000 NBT in liquidity. 50% more NSR will be provided for liquidity on an NBT/USD pair.
Once several people do this it will constitute a market that will evolve toward lower prices and better service. So I’m not buying 30 days of liquidity as much as I’m funding the creation of a market that can provide a mission critical function.
Hi @JordanLee , I am interested. How would that work? Should the prospect custodian be elected to submit RPC liquidyinfo? Will it have to run the bot in dual-side mode for 30 days? What happens after the 30-days period?
Yes, the liquidity provider custodian must be elected by shareholders and yes, they will need to run NuBot in dual-side mode for 30 days or more. After 30 days we will continue to need liquidity, but that can be arranged later (or the custodian can specify a term longer than 30 days, if they like). I think once we can get a few people involved, it will be easy to get more people doing this for progressively less compensation.
I have submitted for a motion vote to amend my original proposal that would allow the granted funds to be used 100% in dual-side mode for the first 90 days of operation. If the motion to amend is passed, would this grant qualify for your offer?
EDIT: Oh, I just realized, Jamie, that your proposal wouldn’t qualify for the NSR offer, because you are not bringing funds to the buy side of the peg. The NBT grant you would receive would be initially placed on the sell side of the peg.
Although Jordan’s post did not specifically state that he was looking for people to put up their own money as LPC’s, after reading back through the thread and the LPC proposals, I believe it can be assumed that this is what he meant. I believe this disqualifies me since I will be using granted funds.
I did have in mind that people would provide their own liquidity for the bonus. I do like the idea of you using the funds you are likely to receive for liquidity, however. We have very low bandwidth for motions at the moment where shareholders can only vote for one at a time. That will likely change in our next release. For now, I planned on finalizing my draft protocol change motion and then offering a second motion later about the burning currency protocol changes. Until the protocol changes to allow more motions, may I suggest that a custodial grant for 1 NBT can act as a motion. We just agree that a certain custodial grant represents a particular motion. If you would like to change the terms of your grant, I suggest you use a custodial grant for 1 NBT as a pseudo motion.
Me too, I am thinking about offering some liquidity to contribute to the peg.
I thought I should take a look at the bot first in order to get familiar with it before any liquidity proposal.
So I played with the bot but I am finding difficulty running it.
Here is my take on it so far: I have played a bit with the bot. Here are my remarks and questions