I am 100% not saying that it should. I am saying that B&C should allow Nu to operate LP’s at 0 fees. That is distinctly different from paying for the operation, as the only cost to B&C is blockchain space. This will not lower dividends, it will amplify them. It is not costing B&C money, it is allowing for more trade, thereby helping to generate money for B&C.
This is false. Poloniex does this, Bter does this, Bittrex does this, CCEDK does this. Practically any NBT pair with volume does this. The exchange doesn’t pay the liquidity costs, Nu does. CCEDK has mentioned that it would love to drop the fees for LP’s if it could figure out a verifyable way to do that. We have that opportunity on B&C in ways that centralized exchanges can only dream of.
The tendency for arbitrage (i.e. price slippage) is going to be equal to the sum of all fees. That includes the network fees, but it also includes the trade fees on the exchange as well as withdrawal fees. That means that when Nu wants to sell 1 NBT for some BTC it has to pay the trade fees and withdrawal fees on arbitrary exchanges. That’s wayyyy less efficient than simply trading on B&C.
Why would we make B&C if we aren’t going to use it? You think trade volume will magically appear overnight, but without liquidity it will be a long time before people start trusting B&C exchange.
So you even agree that there is a clear benefit toward stimulating trade using liquidity.
Is your argument that liquidity provision on B&C is not worthwhile for NSR holders, BKS holders, or both? Because you’ve simultaneously said you don’t know why Nu would do it and you don’t know why B&C would do it.
I just cannot fathom why you think B&C is a bad exchange for Nu to operate a liquidity pair on. That’s the entire point of B&C. Let me just quote from JL’s initial announcement of B&C: