Terms for glossary / dictionary on NuBits.com

The discussion boards are showing the increase in the use of acronyms and Nu-specific (or Cryptocoin-specific) jargon – TLLP, ALP, DAC, LPC, etc.

As we wish to retain and grow the user base to other communities and the mass public, I feel we need to make sure we are understood outside the community. Further, whereas English dominates on this Nu discussion board (I’m not aware of others), it is approximated that only 27% of the world knows English, and should make efforts to ensure these discussions can be translated into other languages.

NBT: NuBit – an asset, created by the Distributed Autonomous Company called Nu that is pegged to the US Dollar.

NSR: NuShares – an asset that represents ownership and provides the ability to vote and control the Nu network in a distributed fashion. Owners of NuShares are rewarded as the Nu network generates revenue through services, thru the distribution of funds as dividends, or thru the buyback of NuShares with proceeds made thru the sale of NuBits.

FSRT: First Strategic Reserve Team – a team of several individuals entrusted with Nu assets, protected thru
MultiSig, that can be bought or sold on the open market manually should circumstances emerge that can not be handled by the liquidity pools.

DAC: Distributed Autonomous Company – An organization that is has no specific physical geographical location or headquarters, that takes action through the consensus

Liquidity: The ability to buy or sell an asset quickly and with no or minimal impact to the market value of the asset.

LP: Liquidity Provider (or Liquidity Pool) – a person, team, or technology that enables the buyers and sellers of an asset to transact with efficiency and no or minimal impact to the market value.

ALP: Automatic Liquidity Pool – A distributed autonomous entity that coordinates the placement and pricing of assets that are owned by individuals on an exchange, to provide liquidity in a unified fashion. The ALP rewards the risk that the individuals are taking by coordinating the buy-side and sell-side walls, such that a small profit is earned from the spread.

TLLP: Trustless Liquidity provider – older term for Automated Liquidity Provider.

MLP: Managed Liquidity Pool – participants provide their assets to a trusted entity, who then manages the pricing and placement of the assets on an exchange, to provide liquidity. The MLP provides compensation the risk taken by individuals either thru a spread between buy-side and sell-side walls, or thru requesting and distributing NuBits / NuShares that are received thru a successful custodian vote.

Multi-Sig: The state of a cryptocurrency asset requiring the signature of multiple participants for it to be transferred.

Peg: To track the value of a secondary asset (such as NuBits) to a primary asset (such as USD).

Spread: For a single asset, the difference between the buy-side and sell-side. For related assets, the difference in market price between the two assets.

NuBot: Software that uses the APIs available on exchanges and market data feeds to manage the buy-side and sell-side walls for a liquidity provider.


Don’t even bother with a motion - I will add a definitions entry to the FAQ page with whatever definitions you edit into your original post here. It’s not much work at all (I update the FAQs fairly regularly), and a great idea. @CoinGame can add it docs.nubits.com too with whatever shareholders decide are important acronyms to know.


NBT - Nubit
NSR - Nushares
ALP - Automatic Liquidity Pool
MLP - Managed Liquidity Pool
FSRT - First Strategic Reserve Team
DAC - Distributed Autonomous Company
LP - Liquidity Provider

Might be easier to just do it on the docs page and link to it from the website. Since the docs site is open source and anyone can submit a PR to update it.

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Not so fast maybe, it it encompasses term like revenue, cost and profit. I believe shareholders are not unified about P&L terminology for example.

Yes please, we need it!

Here are some other terms that comes to my minds :

  • Custodian
  • Sell-side [custodian]
  • Buy-side [custodian]
  • NuBot
  • [buy/sell] wall
  • [Liquidity] Tier
  • Wall Shift
  • Parametric OrderBook
  • Liquidityinfo
  • RPC
  • PriceFeed
  • [price] Streaming Server

Please ping me for ask for specific explanations



Are there any other terms you feel should be added please suggest them here.

@tomjoad I personally think we should have a separate page for the glossary, linked from FAQs.

I can definitely link it to the FAQ page once the docs.nubits.com page has been created.

Deviation, speead, tolerance, discrepancy etc…

Please describe … all of those. :smiley:

I’d like explanations of these too.

Current draft.


Ok, let’s see what I’ve got for now:

A cross-platform automated trading bot written in java.

A client-server pair that performs automated trading and order validation. Written in python, it is the first iteration of automatic liquidity pool software.

A group of elected shareholders that hold the private keys to multisignature addresses containing funds controlled by the NuNetwork.

Both abstractly and concretely affixing the price of one unit of account to another such that they are interchangable economically. A peg is assumed to have a well defined price feed.

The difference in % between the bid and ask on an orderbook. The baseline, or divisor in the % calculation, is the price feed.

Spread After Fees (SAF):
Usually a term used by pool operators, the spread minus twice the trading fee on the exchange represents the profit earned by the liquidity provider in an ideal case where the price feed does not change and there is both buying and selling.

The band about the price feed in which an order can be placed and still be credited by an automatic liquidity pool.

The relative amount the price feed must change by in order to cause a bot to remove orders on the order book.


Great! Draft updated.

✓ Custodian
✓ Liquidity Provider Custodian (LPC)
✓ Sell-Side
✓ Buy-Side
✓ Sell-Side Custodian
✓ Buy-Side Custodian
✓ Buy Wall
✓ Sell Wall
✓ Tier
✓ Liquidity Tier

The following remain to be defined:

✗ Wall Shift
✗ Parametric Orderbook
liquidityinfo (this I don’t see why, please explain)
✗ Price Feed
✗ Streaming Server
✗ Price Streaming Server
✗ Discrepancy
✗ Multisignature (I tried using Wikipedia’s definitions, but wasn’t satisfied)
✗ Counterparty
✗ Counterparty Risk

Any suggestion is welcome, regardless of how minor.

@tomjoad: Could you advice in what to do with the definition of NuBit once Nu releases additional currencies?

OK, let’s have a crack at this. (on mobile so apologies in advance for auto correct errors)

Custodian An individual or other entity which controls an address that has had new NuBits or NuShares created at it as part of a successful custodian grant vote. These NuBits or NuShares are created by the network, not transferred from a different address.
Liquidity Providing Custodian (LPC) A custodian granted NuBits with the sole intention of providing them to market.
Sell (Ask) side On an exchange order book, the sell side is comprised of all orders that offer to sell the item being exchanged. Conversely, the buy (bid) side is comprised of all orders offering to buy the exchanged item. The price of the item can be said to be midway between the highest buy/bid order and the lowest sell/ask order. The gap between the top bid and bottom ask orders is termed the spread.
Sell side custodian A term coined in the Nu white paper. A sell side custodian sells their granted NuBits on an exchange and returns the profits to Nu in the form of dividends. A Buy side custodian on the other hand, immediately places orders to buy NuBits, thus supporting the buy side.
Buy/Sell wall a large order on an exchange order book. When viewing an order book as a graph (called a depth chart on most exchanges) a large order can be seen as a large jump in the volume and looks a bit like a wall. When the price is moving and orders are being filled, the price will stall one it hits the large order as it will take some time to fill, almost as if the price movement ‘hit a wall’. Nu has traditionally used ‘walls’ as a way to control the price if NBT. Large buy and sell orders just above and just below $1 prevent the price from moving too far from that price.
Tier/Liquidity Tier a term used to describe where NuNets funds lie. Tier 1 is considered to be funds which are in an order on an active exchange, tier 2 are funds on an exchange but not on an order. Tier 3 are funds in the hands of custodians but not on an exchange but capable of being introduced to an exchange rapidly. Tiers 4, 5 and 6 (and 7?) site with different groups or entities (more info needed here I think?). As you move from lower Tiers to higher Tiers, the funds are increasingly difficult to bring to market to directly support the peg but conversely, they suffer less risk (exchange default, rogue custodian etc.) . By balancing the funds in the different Tiers, Nu can control the available liquidity while mitigating some of the associated risk.

I’ll do some more later. Need to walk to the office now.


Only sell side?

Experimented with liquidity tier section. Didn’t look good using subheadings, and a list is more convenient for copy–pasting. Linking directly to tiers may be unreliable anyway as they are subject to change.

Current draft 2016–01–29.

Does the current version seem good enough for publishing? I’ll keep tinkering. If anything, I’d like you to examine descriptions of tier 5 and 6. Have had the least time to think about those.

I updated NuBit to reflect the shift toward multiple currencies.

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It’s a great start. May as well go ahead and publish. We can always updated it as we go.

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Thank you very much for creating this glossary and summing all up in a nice overview!


Tier 6 takes the form of custodial grants for sell side and currency burning for buy side (presuming a currency burning motion is passed and implemented). It takes a week or more to bring to market but has zero maintenance costs.


Is that still accurate and applicable? Seems to me it should at least say something about NuShare selling.

We currently dont have much in the way of motions for selling nsr. The current nsr auctions only trigger if we apply park rates for 30 days continuously.

It’s live!



I’d like CRFC (Combined Reward Fixed Cost) described.

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