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.
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 :
- Sell-side [custodian]
- Buy-side [custodian]
- [buy/sell] wall
- [Liquidity] Tier
- Wall Shift
- Parametric OrderBook
- [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.
I’d like explanations of these too.
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.
✓ Liquidity Provider Custodian (LPC)
✓ Sell-Side Custodian
✓ Buy-Side Custodian
✓ Buy Wall
✓ Sell Wall
✓ 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
✗ Multisignature (I tried using Wikipedia’s definitions, but wasn’t satisfied)
✗ 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
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/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.
It’s a great start. May as well go ahead and publish. We can always updated it as we go.
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.
I’d like CRFC (Combined Reward Fixed Cost) described.
Let’s start with fixed reward (FR). With FR a liquidity provider (LP) is awarded a fixed percentage of their provided liquidity per minute. This can be done up to a limit, described as a target, above which a different mechanism is used to determine payment. In the current ALP model, like that used on poloniex, this mechanism is the ‘dutch auction’ whereby LPs state the minimum rate they are willing to accept and providers are paid at the rate that edges out enough LPs to attain the target. If you think this is complicated, you’re right to some degree. However, the end result is that an LP just states the minimum rate they are willing to accept and the operator goes from there.
Fixed Cost (FC) on the other hand strives to simplify the process by doing away with targets entirely. Instead, a fixed amount of nubits are paid each minute, distributed evenly amongst LPs proportionally based on liquidity provided. The end result is that as long as there is competition an LP can get more reward for submitting more liquidity and if there isnt competition the reward rate can approach infinity, which theoretically ensures competition.
Combined Reward Fixed Cost (CRFC) seeks to find a happy medium. The basic functionality is FC as opposed to dutch auction, but a target is reintroduced. Below the target, as measured by the total liquidity provided, the shareholders sustain a smaller cost. This means that a pool operating below target (again, combined sell and buy side) will simply award proportionally less nbt total. The end result is that pool balancing is incentivized while maintaining a reduction in cost to shareholders for an under performing pool.
Please note that CRFC with a zero target is equivalent to FC. FR on the other hand requires a dutch auction model that has not been coded in ALP 2.0. However, a pool with balanced provision operating on a CRFC pool below target is indeed promising a fixed reward measured in % of total supplied liquidity.