Considering the trade volume on Bittrex
I want to ask whether Nu really wants to continue an ALP operation there.
The compensation of the NuPool Bittrex ALP is not far from the trade volume there.
The transition to a new liquidity provision scheme that differentiates between fully supported (ALP + MLP [e.g. dual side NuBot with Nu funds, NuLagoon]) exchanges and sell side only exchanges needs some preparation, though.
I think a motion is required to evaluate the current situation and make a plan for a transition.
Before I draft a motion body, I want to test the waters to find out whether there’s interest in taking such a route or not.
I guess the bter and ccedk operations need to have continued ALP support, because they connect Nu to chinese traders and offer fiat pairs.
SouthXchange has little volume, but supporting it is very cheap and it offers a fiat pair as well. The BTC/NBT pair there might be fine with a sell side only bot.
Poloniex is at the moment the US-NBT exchange when measured in volume.
I doubt that ALP/MLP support for Bittrex and hitBTC are useful (as far as I’m aware of, there’s currently no support for hitBTC at all) and should be replaced by sell side only NuBots.
Further I think the Poloniex ALP volume can be reduced. History showed that in times when ALP is most needed, it isn’t reliable.
LP might make the rational choice during the next heavy BTC price swing again and pull their funds.
It’s not necessary to offer compensation for up to $20,000 on each side if you can’t rely on them and don’t need them in normal times.
CRFC might be able to mitigate the low reliability of ALP, but
- the NuBot integration of ALP isn’t complete
- even then a target of $20,000 on each side at Poloniex seems to be too much (read: too expensive)
###Mile stones could be:
- advertize a change of liquidity provision:
major exchanges like Poloniex and NuLagoon tube are the only officially supported exchanges where the peg is ensured by Nu and where both buying and selling US-NBT is supported; other exchanges might have (limited) sell side support. They are not the recommended places to buy and sell US-NBT. - find an operator (or operators) for sell side only NuBot/PyBot on at least
- Bittrex (NBT/BTC)
- hitBTC (NBT/BTC)
- CCEDK (NBT/BTC)
- CCEDK (NBT/PPC)
- southXchange(NBT/BTC)
- find an operator (or operators) for dual side NuBots on
- Poloniex (BTC/NBT); currently supported by @zoro, @nagalim, @masterOfDisaster (until forther notice for emergencies only)
- reduce Bittrex ALP compensation to e.g. $1,000 each side
- reduce Poloniex ALP compensation to e.g. $6,500 each side
- gather experience with sell side only operations; this includes
- scheduled refills
- standardized reporting
- scheduled accounting and withdrawals
- end ALP support for
- Bittrex (NBT/BTC)
- hitBTC (NBT/BTC)
- CCEDK (NBT/BTC)
- keep ALP support for each fiat pair (doing that with a dual side NuBot is hard because of the KYC, AML policies) and for Poloniex (until Poloniex gets replaced or complemented as the major US-NBT exchange)