@catcow notices liquidity has decreased dramatically.
@JordanLee asks why liquidity has decreased and for those understanding current liquidity operations to explain what can be done.
@Cybnate says her PyBot operates at 0.7% spread (0.35% offset on both sides).
@JordanLee holds 59.8 BTC for Nu.
@JordanLee finds reserves are below targets and claims NuLaw demands NuShares be sold after 30 consecutive days of park rates.
The latest share buyback calculation indicates reserves are slightly below our targets as established by motions. When reserves fall below the targets set by shareholders, it is time to take action to bring the reserve up. There are two methods of doing this that are under the direct control on shareholders: offering park rates and selling NuShares. Park rates should be used first. There is a regulation in effect that if park rates are offered for 30 consecutive days then NuShares must be sold and NuBit proceeds burned.
@masterOfDisaster states his gateway operates at 4% spread, and has for some time.
The spread of my Poloniex NuBot is already at approx 4% (offset 0.02 each side - exchange fees).
I’ll increase the offset to 0.025 during the next maintenance.
@masterOfDisaster initiates conversation regarding a NuShare sale.
Tier 1–4 reserves were 82 BTC.
At current market rates that a sale of approximately 8 to 10 million is necessary to fill the gap (provided it’s not bigger than my gut feeling tells me).
I’m open to take all $30k from NuSafe, reducing the NSR sale to $10k, equaling 3 to 4 million NSR.
@JordanLee reaffirms his understanding that any devaluation of NuBits is destructive to the whole system, and warns shareholders against supporting such practice.
@JordanLee holds 126.04 BTC for Nu.
@JordanLee posts “Lack of commitment to liquidity is our biggest threat now”.
@JordanLee notes 64,000–72,000 US-NBT was sold the last day, about 10% in circulation. He sees NuShare sales are scheduled within a week but urges expediting them and suggests placing NSR on order at 500 satoshi.
@masterOfDisaster places 1,200,000 NSR at 500 satoshi on Poloniex.
@mhps notices there is someone with 21 BTC on the buy side. Whether that’s the total is unclear.
@masterOfDisaster posts update saying 2.3 BTC of proceeds from NuShare sales so far.
@masterOfDisaster announces 6.9 BTC total from NuShare sale ($3,677 at that time) and places them at
20% 180% spread.
All BTC proceeds (6.9 BTC, at $533 per BTC at the time of writing valued $3,677) from the NSR sale have been put on order at the NBT/BTC pair at offsets of 90% and above - in case someone desperately wants to get rid of NBT
@masterOfDisaster asks what to do with the remaining NuShares.
@FLOT, what do we do with the NSR, that need to be sold?
Putting them on order at Poloniex again?
@Nagalim responds with a calculation suggesting the weekly amount. Is that number according to NuLaw or simply useful?
4,762 * 0.0015 = 3.175 mil nsr for sale this week.
@NuWorld argues NuShare sales have been ineffective and suggests multiple more aggressive approaches.
2016–06–05 – 2016–06–06
FLOT fails to create a transaction for further sales and determines there’s a problem with Cointoolkit.
@JordanLee posts “Make Firing and Replacing Incompetent Liquidity Providers Our Top Priority”.
@jooize posts “Get NuBits’ liquidity flowing”.
- FLOT has 35.74 BTC
- @zoro’s gateway has 12.28748625 BTC, spread undetermined.
- @masterOfDisaster’s gateway reports 10568.606 US-NBT worth of BTC, reportedly at a spread of 4% or more.
@masterOfDisaster displays fundamental misconceptions of Nu’s model for peg support.
You can’t demonstrate commitment to the peg, if you are out of BTC.
The only reason we’re not out of the BTC is, because the buyside offset was increased.
@jooize concludes that all remaining funds must be used for buy side support and creates a transaction.
The Bitcoins FLOT holds belong to NuBit holders. Only legitimate reason to withhold them may be to better serve more NuBit holders, but that is not mandated. FLOT is supposed to provide Tier 4 funds when liquidity balance in the network is below 40% on either side.
Selling NuShares have all along been the consensus plan for peg support. That shouldn’t come as a surprise.
@Phoenix posts and later passes motion allowing him discretion over NuShare sales and buybacks.
@jooize summarizes the amount of Bitcoin spent on NuShare buybacks.