Supply, Reserves, and Equilibrium (superseded by automation)


#514

Looks like Bittrex is or was off.


#515

Correct. Really sorry for that. I feel bad for the dent on CMC. NuBot appears to have failed at startup after a withdrawal I made.

Not to trivialise my mistake, but it’s an opportunity for arbitrage which helps the peg.


#516

Supply 2017–06–25

US NuBits (US-NBT)

Blockheight: 1,463,300

Existing: 839,728.9825
Parked: 29,858.6494

Liquidity Operations*: 75,245.1012
Bittrex: 112,440.0626
Cryptopia: 145,140.8306
NuLagoon Tube: 27,421.8698
Nu-owned: 360,247.8643

Circulating: 449,622.4688

* B71AkDjzm4S24KoXGoq6W3hynexAyNb9FV

Chinese NuBits (CN-NBT)

Existing: 2,000,000
Parked: 0

Liquidity Operations*: 2,000,000

Circulating: 0

* YhSEw9AGBJ3KtqLrxeQrcsTVk5u57pA88m

NuShares (NSR)

Blockheight: 1,463,300

Existing: 3,318,521,731

Liquidity Operations*: 60,240,010
FLOT 1**: 64,344,685
FLOT 2***: 5,940,000
Cryptopia: 62,160,914
Alcurex: 76,262,498
Nu-owned: 268,948,107

Circulating: 3,049,573,624

* SaaP8P3TH8HU27MBkhH6j8EhQ9AvAEY27J
** SvtGbNjWE49pTM2TiUZrYKSNkxTJx75mmC
*** Snvrc5q82wfe2NjEjaQAyStpPKseWrsNqn


#517

Reserves 2017–06–25

Dollar amounts represent BTC in USD.

BTC = 2,642.40 USD

Tier 1–2

Bittrex: $90,163.56
Cryptopia: $1,224.95
Cryptopia: $63,408.79
Alcurex: $2,115.32

Tier 3 (Not in effect)

Tier 4

Liquidity Operations*: $158,549.10

* 17owruzTRANDYwCq77bSABQLXBxx3QaCea

Tier 5

Refer to parked amounts for current utilisation.

Tier 6

Monthly liquidity of NuShares: $164,480

Total Tier 1–4

$315,461.72


#518

Equilibrium 2017–06–25

Circulating US-NBT: 449,622.4688
Reserve percentage: (50 - 449,622.4688 / (2,000,000 / 25)) / 100 = 0.4438
Equilibrium reserve: 0.4438 * 449,622.4688 = 199,542
Current tier 1–4 reserve: 315,462
Minimum tier 1–4 reserve: 0.20 * 199,542 = 39,908
Daily move to equilibrium: 0.01 * (199,542 - 315,462) = -1,159

  • Equilibrium is having $199,542 in tier 1–4 reserves.
  • Current tier 1–4 reserves are valued at $315,462.
  • Buybacks for the amount $1,159 per day will begin.

Daily move to equilibrium is the amount in USD of how many NuShares will be sold or repurchased every day toward reserve equilibrium.


#519

Price calculations? Haha, I literally sold them for 1.30 on Bittrex, I didn’t calculate any price.


#520

The NuBit pair on Bittrex is based on Bitcoin so you sold your NuBits for an amount of Bitcoin which you calculated to be worth $1.30. I just wondered which price of Bitcoin you used (bitfinex, coin market cap, btc-e?) when determining that value.

It’s by the by now anyway. It seems the NuBot at Bittrex wasn’t running correctly. NuBot is the automated bot that manages liquidity on exchanges and generally keeps the peg. As with all systems, it’s not perfect and can fail. In such situations people such as yourself noticing that and taking advantage on the arbitrage opportunity actually help by moving the market back towards the peg.


#521

Exactly, I sold into the strength. If Nubits goes below, I always buy into the weakness, but that hasn’t happened in a while. :frowning: … Edited post : Actually I just took an opportunity.


#522

Supply 2017–06–30

US NuBits (US-NBT)

Blockheight: 1,471,239

Existing: 839,726.9825
Parked: 30,858.6494

Liquidity Operations*: 80,245.0912 (includes 75k expected from Cryptopia shortly)
Bittrex: 45,559.2369
Cryptopia: 70,790.6257
NuLagoon Tube: 27,421.8698
Nu-owned: 224,016.8236

Circulating: 584,851.5095

* B71AkDjzm4S24KoXGoq6W3hynexAyNb9FV

Chinese NuBits (CN-NBT)

Existing: 2,000,000
Parked: 0

Liquidity Operations*: 2,000,000

Circulating: 0

* YhSEw9AGBJ3KtqLrxeQrcsTVk5u57pA88m

NuShares (NSR)

Blockheight: 1,471,256

Existing: 3,318,831,595

Liquidity Operations*: 60,240,010
FLOT 1**: 64,344,685
FLOT 2***: 5,940,000
Cryptopia: 75,413,656
Alcurex: 76,262,498
Nu-owned: 282,200,849

Circulating: 3,036,630,746

* SaaP8P3TH8HU27MBkhH6j8EhQ9AvAEY27J
** SvtGbNjWE49pTM2TiUZrYKSNkxTJx75mmC
*** Snvrc5q82wfe2NjEjaQAyStpPKseWrsNqn


#523

Reserves 2017–06–30

Dollar amounts represent BTC in USD.

BTC = 2,515.38 USD

Tier 1–2

Bittrex: $65,198.28
Cryptopia: $1,893.97
Cryptopia: $101,928.24
Alcurex: $2,013.63

Tier 3 (Not in effect)

Tier 4

Liquidity Operations*: $201,216.87

* 17owruzTRANDYwCq77bSABQLXBxx3QaCea

Tier 5

Refer to parked amounts for current utilisation.

Tier 6

Monthly liquidity of NuShares: $134,622

Total Tier 1–4

$372,250.99


#524

Equilibrium 2017–06–30

Circulating US-NBT: 584,851.5095
Reserve percentage: (50 - 584,851.5095 / (2,000,000 / 25)) / 100 = 0.4269
Equilibrium reserve: 0.4269 * 584,851.5095 = 249,673
Current tier 1–4 reserve: 372,251
Minimum tier 1–4 reserve: 0.20 * 249,673 = 49,935
Daily move to equilibrium: 0.01 * (249,673 - 372,251) = -1,226

  • Equilibrium is having $249,673 in tier 1–4 reserves.
  • Current tier 1–4 reserves are valued at $372,251.
  • Buybacks for the amount $1,226 per day will begin.

Daily move to equilibrium is the amount in USD of how many NuShares will be sold or repurchased every day toward reserve equilibrium.


#525

the reserve percentage keeps on declining.
why ?
the more nubits in circulation, the lower it needs to be?
what s the rationale behind it?
also, it seems you did bring to circulation more than 100k nbt to markets?
any specific motion that mandates that number?

thank you.


#526

I didn’t decide the algorithm, but the rationale may be that at higher scale less strong movements in supply are expected. Feel free to consider improvements.

What do you mean? That sounds like the core of my job, to provide liquidity. Phoenix has full authority within liquidity operations.


#527

I see. It could make sense. Let s see how it behaves in the future when we have more nubits in circulation.

I see. But is there anyhing that mandates the quantity of liquidity brought to markets?


#528

I’m quite sure there isn’t. I’ve been thinking about some velocity algorithm such as with buybacks, but I’m not sure it would be of much value. Automated creation would be the best, but it doesn’t seem easy. Perhaps ongoing voting by shareholders to create NuBits for custodians who destroy unused NuBits to stay at a mandated amount with automated flow.


#529

Supply 2017–07–08

US NuBits (US-NBT)

Blockheight: 1,481,799

Existing: 1,339,788.5042
Parked: 29,612.9098

Liquidity Operations*: 115,028.9112
Liquidity Operations**: 500,000.0000
Bittrex: 72,090.4918
Cryptopia: 71,783.1623
NuLagoon Tube: 27,421.8698
Nu-owned: 786,324.4351

Circulating: 523,851.1593

* B71AkDjzm4S24KoXGoq6W3hynexAyNb9FV
** BKjVpyCjFrSYwCMsYNtPMCH74aGyBB4NBf

Chinese NuBits (CN-NBT)

Existing: 2,000,000
Parked: 0

Liquidity Operations*: 2,000,000

Circulating: 0

* YhSEw9AGBJ3KtqLrxeQrcsTVk5u57pA88m

NuShares (NSR)

Blockheight: 1,481,798

Existing: 3,319,252,289

Liquidity Operations*: 85,239,010
FLOT 1**: 64,344,685
FLOT 2***: 5,940,000
Cryptopia: 77,010,703
Alcurex: 76,262,498
Nu-owned: 308,796,896

Circulating: 3,010,455,394

* SaaP8P3TH8HU27MBkhH6j8EhQ9AvAEY27J
** SvtGbNjWE49pTM2TiUZrYKSNkxTJx75mmC
*** Snvrc5q82wfe2NjEjaQAyStpPKseWrsNqn


#530

Reserves 2017–07–08

Dollar amounts represent BTC in USD.

BTC = 2,550.90 USD

Tier 1–2

Bittrex: $71,425.66
Cryptopia: $3,627.50
Cryptopia: $102,333.81
Alcurex: $2,017.38

Tier 3 (Not in effect)

Tier 4

Liquidity Operations*: $172,504.31

* 17owruzTRANDYwCq77bSABQLXBxx3QaCea

Tier 5

Refer to parked amounts for current utilisation.

Tier 6

Monthly liquidity of NuShares: $126,180

Total Tier 1–4

$351,908.66


#531

Equilibrium 2017–07–08

Circulating US-NBT: 523,851.1593
Reserve percentage: (50 - 523,851.1593 / (2,000,000 / 25)) / 100 = 0.4345
Equilibrium reserve: 0.4345 * 523,851.1593 = 227,613
Current tier 1–4 reserve: 351,909
Minimum tier 1–4 reserve: 0.20 * 227,613 = 45,523
Daily move to equilibrium: 0.01 * (227,613 - 351,909) = -1,243

  • Equilibrium is having $227,613 in tier 1–4 reserves.
  • Current tier 1–4 reserves are valued at $351,909.
  • Buybacks for the amount $1,243 per day will begin.

Daily move to equilibrium is the amount in USD of how many NuShares will be sold or repurchased every day toward reserve equilibrium.


#532

[reserve calculation](http://www.wolframalpha.com/input/?i=plot(0.5x-x^2%2F(8000000)))
At 2 million NBT, Nu will start lowering the total reserves the more nbt are on the market. Over 4 million NBT, the reserve will be less than $0.


#533

How shall we adjust the curve?