I want to ask if the trade volume peak of 1M NBT daily means that if we have a 50% reserve the peg will be enough secured?
I think most of these Trading volume are not on the sell side on the NBT/USD pairs, as it seems NuBits are used mostly in arbitrage.
So does it means a 50% reserve is enough for securing the peg for the short term?
The 24-hour volume is arbitrary. You could look at the 12-hour volume or 48-hour volume instead.
I think we can safely say that the higher the adoption rates and volumes, the more we can afford a lower reserve. However I wouldn’t take timeframes of a day or even weeks. It should be at least months of unidirectional trending before you can draw some conclusions. I think it is also hard to set a number, it is not that black and white. Usually there is a whole raft of other environment variables at play before you can set a relative safe range for the reserve. I would not dare to start guessing and I think we will need some economics and banking expertise and guidance to keep on the right track.
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