I could not agree more with @mhps, @cryptog and @Benjamin based/on the following quotes:
That concur also with my yesterday’s call: NBT: From a Hedging Currency to a Transactional Currency
I could not agree more with @mhps, @cryptog and @Benjamin based/on the following quotes:
That concur also with my yesterday’s call: NBT: From a Hedging Currency to a Transactional Currency
That is because NBT/USD doesn’t fluctuate therefore there is no money to be made for cryproexchanges. We should not limit ourselves to selling/buying NBT on cryptoexchanges. There are many times more payment processors, currecy exchangers, and payment gateways than there are cryptoexchanges. What’s more, people can sell/buy on individual level if Nu can provide reference code for their webpages.
What would be the primary fields/interface where Nu would establish or control its peg - Exchange? gateways? processors?
That seems promising
Very good point.
Besides, can we envision a peg only maintained by providing liquidity into payment processors?
I feel it is possible if we can incentivize sufficiently custodians to sell and buy NuBits around the peg.
But in that case, how would that change from exchanges?
Maybe the opportunities for traders to hedge against custodians would much more limited in payment processors rather than exchanges.
I am just making some hypotheses here though.
EDIT: added info
EDIT2: how would that change from exchanges? --> well the pairs involved would be NBT/FIAT
So traders would not be able to hedge against custodians, hence the absence of loss.
Payment processors such as OKPay could support Nubits directly, just as it is supporting bitcoin, litecoin, and dogecoin now.
But that is not the best part, because such support is centralized. The better part is PerfectMoney, OKPay, Webmoney, Payeer, EgoPay etc all have APIs. If someone can provide simple code, business and grassroot individuals can easily become nubits liquidity providers, without anyone’s approval or interference, selling/buying NBT/USD, using these payment processors as backends so all fiats are off the server.
So instead of offering liquidity only on exchanges for NBT/BTC 1) (I remember a while ago that Jordan Lee stated that he wanted to make NuBit the most liquid crypto over exchanges), why not offering offering liquidity only on payment processors for NBT/FIAT 2) ?
In case 1), NuBit is only a stable coin against which traders hedge their BTC positions with no utility in real life.
In case 2), NuBits is a stable coin with no utility for speculating or trading or hedging in crypto exchanges, but with utility in real life (I am extrapolating by imagining that consumers would buy NuBits for online payment.)
I feel 2) is much closer to the original idea of NuBits.
Right now, I think it s fair to say that NuBits is not fulfilling the original idea: transactional currency.
This post mentions the same state of affairs.
I feel we need to operate a shift from 1) to 2) and then NuBits would fulfill the original goal.
If we do not do it, some fork of Nu would do it…
I second absolutely this reply - this is well stated
What are we waiting for? somebody propose a motion and/or grant!
This tweet shows that NBT is used as a hedging instrument, away from its objective of a transactional currency.
So if I think $BTC will tank I should buy $NBT, if I think $BTC will rise I should sell $NBT.
It takes time for ideas to sink in. Let’s spread the idea and get discussion going.
Can we get the NuPool on CCEDK NBT/USD? We just need a pool operator to propose a motion right? Who wants to be pool operator? I’d do it, but I’m afraid I don’t have the technical skills, commitable time, or trust of the community.
Thinking about it more, pegging NBT/USD on CCEDK is just pegging Swift and Payeer as payment processors. Still, this is far better than pegging nbt/btc in my opinion.
I tried this pair already and it is fully supported by the pool and working (alongside with EUR).
If anyone is interested in setting up a TLLP, be assured that you will get my full support in installing and maintaining it. Of course some technical skills are required.
Pegging against fiat was always the original goal and as far as I remember the whole crypto pegging was done because there were no other options. With open source we absolutely should evaluate our new options closely. @woolly_sammoth’s grant on Bittylicious is already a good start.
So I would be happy to put up something like 50USD on the NBT/USD using a btc-e code to get the USD to ccedk if I can get paid .25%/day. Can I use the latest nupool version and change the unit to USD and the exchange to ccedk? Would I need to use a different server than EU.nupool.net?
I would be also willing to support the peg on ccedk on nbt/usd with a small liquidity (like 50 usd) without the fuss to remit cash from Japan to Denmark.
I did it once here.
I would not want to deposit a lot of usd (relatively) because it is too risky.
But if we can diversify the risks among say 100 custodians, I would be definitively in.
I would be interested in btc-e code.
The eu.nupool server is only pointed to Bittrex at the moment in line with our custodial grant proposal here: [Passed] Trustless Liquidity Pool operation on Bittrex. We thought it best to restrict the number of exchanges that the pool operated on for this fisrt run as it meant fewer variables to untangle should things go wrong.
@Cybnate has been getting to know the pool server software and has suggested that she may start operation on some CCEDK pairs in the next few days. Current Liquidity
Once the NuPool term on Bittrex has come to an end, I would like to see it operate again across a range of exchanges.
It looks like the response was that you got little volume. Is that a bad thing? I don’t think so. The risk is way lower than nbt/btc, that’s why we want to do it. The rate could probably be lower than .25%/day and I would still be up for it. We should pay high rates for risky stuff like nsr/nbt and lower interest rates for nbt/USD. Clearly all liquidity rates should be higher than park rates at least.
As for btce codes, they’re a good way to go from btc or ppc to USD that you can move over to ccedk, as there is basically no USD volume on ccedk for any pair.
Sorry for the lack of info.
I think too that NBT/USD should be the only pair for which liquidity is provided.
It is not a bad thing that I got very little volume.
It just that CCEDK got hacked during my operation.
I could withdraw the whole fund fortunately.
Therefore, I am not willing any more to deposit “so much” (5000 usd).
I would like to dilute the risk over 100 custodians ideally.
Likewise here , I would be willing to support such pair.
I would support nbt/usd as well.
I will support it, too.