With @Nagalim setting up as a trusted custodian - using FLOT funds…I wanted to start a discussion about becoming a personal T3 custodian - using personal funds for T3.
Knowing full well that T3 represent Nu - and any slip up will reflect upon Nu - I’d like to grow the T3 responsibly. Now, since I’ve been around for a little bit, and may or may not have gained some trust - my situation may be different, but I want to discuss in general terms.
If someone wants to become a T3 - how can we prove they are providing liquidity & account for it? Do we provide a ranking system for trust? How can help setup a routine for exchanging funds effectively? Do we compensate the T3 - or do they subsist on exchange fees?
Transactions can be found on the blockchain. Requests to do trades are likely public in the forum.
Sounds complex. I have no clue.
You might be aware of Cointoolkit. FLOT manages transactions with it.
Afaics it’s not suitable for broadcasting NBT tx, but can broadcast BTC tx (can somebody confirm that?).
If you receive NBT, you can send the BTC via Cointoolkit even from mobile phone.
Sending NBT currently requires a Nu wallet application that is capable of coin control to pick the “sendfrom” address.
Fees seem to be an appropriate incentive to make trades.
I would suggest that instead of attempting the T3 custodian using personal funds you instead make your own MLP with just your own funds. Operate on hitBTC and Bter, or whatever, and provide T1-3 support. We can make a cool complex reward contract for you because we can trust your numbers if you’re providing T1 support directly through MLP.
The goal of T3 - i thought - at least my goal, is to keep funds off exchange but still enable the liquidity to Nu. Much like the NuLagoon Tube.
So the question is why should we pay you if all you do is keep money in a wallet? Only if we trust that you will bring your funds to market if we need them should we actually reward you for anything. So one way to do that is to create the concept of Fund-Days-Destroyed and stuff to make sure the custodian isn’t colluding, but that is difficult and complicated to get working. An MLP we can trust because we can use the third party of the exchange to verify that you have funds.
Let’s look at a peg break in the two situations:
a) T3 custodian destroys their Fund-Days to avoid providing liquidity, costing Nu nothing but disappearing right when we’re trying to rely on it. As long as we don’t count it as real liquidity, this is just fine.
b) MLP breaks contract to avoid having to rebalance the pool. This is why we want to make sure that the MLP has the same order of magnitude T1+2 funds as T3, otherwise the risk of several rebalances can outweigh the contract.
I’d love to implement a) as long as we’re careful not to depend on the liquidity it provides, I just thought that trusted custodianship was an easier place to start.
I didn’t see your previous thread - my apologies.
I’m willing to operate on exchange fees - but I was wondering about general cases. & In general - to keep it simple - I think we should limit compensation to exchange fees
NuLagoonTube does not operate under Nu contract.
The simple NBT/BTC T3 custodian operating off their own funds and getting compensation for it through custodial grant mandates white lists. If you agree to only make deals with MLP operators or a specific set of trusted members but not yourself then I would agree we should compensate you and let you report it.