US NuBits purchased for over $1

[Phoenix]

The peg, though admittedly not firm at the moment, does remain. There are no US-NBT for sale below $0.995 at Poloniex right now, which is our intended buy price. I think the sell orders below $0.995 have been completely consumed around a dozen times in the last day or two.

We will continue to sell NSR to build a buy wall at $0.995. I expect to continue to see temporary fluctuation in the coming days. We remain committed to continuous price support by either purchasing NuBits when there are sell orders below $0.995 or by placing large buy orders at $0.995. Restoring the peg in the present circumstances is necessarily a process. It is a transition from a supported floating currency to a strong and firm peg. We are well advanced in that transition, but it certainly isn’t complete yet.

To help speed the transition, interest is being offered for buying and locking your own NuBits for up to six months. Interest has just begun to be offered at this time, and can be expected to be 10% for six months in less than a week.

Want to help us transition from a floating supported currency to a firm peg? Buy US-NBT or NSR. Right now there are only a few thousand US-NBT available below $1.01. I have asked @jooize to place 20,000 NBT on a sell wall, so quite soon we will fix the lack of sell side liquidity. We are slowly transitioning back to normal operations.

That bonus custodial grant request is coming soon. I plan to ask shareholders to reward myself, @jooize and @woolly_sammoth, as we all made important contributions to restoring the peg. There may still be time to earn yourself part of the bonus if you find a substantial way to help quickly.

[Cybnate]

if you find a substantial way to help quickly.

Probably not substantial but just support. Still running the gateway operations according to this grant: https://daology.org/proposals/efb13a1053b26c5770eac5b8ca6c5b994619069e
The question is whether you like to support that or rather see the NBT burned and the infrastructure I kept on going no longer available for Nu.

I’m good to continue the service based on previous fees for just $129 NBT for 90 days as it doesn’t take much to look after and is very stable. The previous passed grant allowed for a 1.4% spread. I’m fine to raise a new grant allowing for 1% spread as you have indicated to be more desirable. With your support it can pass within a week. I’m fine to start charging from 1 October on given the previous grant hasn’t been providing the value due to the peg break.

Will update my holdings on behalf of Nu in another thread.

[Phoenix]

The peg still lives after 2 days. Right now, there are no sell orders on Poloniex for US-NBT below $0.995. The price of US-NBT has been cycling rapidly between $0.93 to $1.00. Traversing that wide range quickly means there are good arbitrage opportunities: buy at $0.93 and sell at $1.00. Hopefully we will see market participants compete for this arbitrage, which will reduce it, bringing us closer to stability at $1.00.

We are very close to being able to keep a continuous peg. Let’s finalize the victory.

[Phoenix]

Bitcoin experienced a sudden 5% drop in the last day. We have focused our efforts in liquidity operations on price performance and deprioritized accumulating any kind of reserve to buffer the price. Under a zero reserve philosophy, such buffers would be extracted from the NuShare market cap just in time. We didn’t create a surge of NSR sales in this case, because we have already essentially been selling as many NSR as the market will buy for more than 2 months. A surge in NSR sales would violate our policy of not making daily sales in excess of 2 million when the price is below 70 satoshis.

So while we are off peg at around $0.94, there wasn’t any sell off of US-NBT. The vast majority of trading occurs in BTC on Poloniex, and the walls on that market have moved up slightly, not down in the last day.

The decline appears to be the result of the BTC decline combined with our admittedly impaired capacity to provide liquidity at this time.

We need to focus on creating demand for US-NBT and improving social mood surrounding the project to move up those last 5.5 cents. We are almost there.

[GreatScott]

our policy

This is your policy, let us be honest. I doubt my opinions will change anything, but I will reiterate that I see little difference of this policy stance from what you claim is the prime reasoning for the peg collapsing months ago: refraining from selling NSR for what is perceived as a low price. It’s only OK if you say so, is my takeaway. My mood about this project is that tether, with their centralized full reserve model, is a better system than a centralized pegged currency with fractional reserves. If I had to pick between NBT and USDT, USDT would win hands down. Just being honest, in case you are looking for constructive criticism. I am not sure how you would retain all the power you have and still provide a product that doesn’t carry a tremendous amount of perceived risk.

[serfer]

more 1000 BTC volume days on NSR would sure improve the social mood of the project.

[Phoenix]

more 1000 BTC volume days on NSR would sure improve the social mood of the project.

How about 2 days in a row over 250 BTC per day? Good enough? The recovery is getting noticed.

[Phoenix]

Over the last two days, in large part due to the NSR rally, we have been able to take quite a few steps in our transition from being a floating supported currency to our normal position as a strongly and tightly pegged currency.

• In the last 24 hours, the price of US-NBT has ranged from $0.973 to $1.003.

• There are $7000 in buy orders for US-NBT at or above $0.995.

• Only 13,000 US-NBT is on the sell order book in front of shareholder offered US-NBT. Once we begin to sell shareholder US-NBT again, proceeds will go immediately to forming a strong buy wall. Good interest can be had for holding and parking NuBits. Shareholders are on track to offer 10% return for 6 months (20% annually) in three days time.

[Cybnate]

Probably not substantial but just support. Still running the gateway operations according to this grant: https://daology.org/proposals/efb13a1053b26c5770eac5b8ca6c5b994619069e
The question is whether you like to support that or rather see the NBT burned and the infrastructure I kept on going no longer available for Nu.

I’m good to continue the service based on previous fees for just $129 NBT for 90 days as it doesn’t take much to look after and is very stable. The previous passed grant allowed for a 1.4% spread. I’m fine to raise a new grant allowing for 1% spread as you have indicated to be more desirable. With your support it can pass within a week. I’m fine to start charging from 1 October on given the previous grant hasn’t been providing the value due to the peg break.

Will update my holdings on behalf of Nu in another thread.

@phoenix, still hope you care to reply to my offer.

[Phoenix]

Hi @Cybnate. I respect the many contributions you have made to the project over the years. I’m not sure how to proceed. I am concerned that you lowered the peg in late May. It might be that you would be better suited to work outside liquidity operations, or it may be that you have learned something over the past few months.

[Phoenix]

• Based on the BTC price right now, the price of US-NBT has ranged from $0.993 and $1.001 in the last 24 hours. That’s a good peg.

• There are $12000 in buy orders for US-NBT at or above $0.995.

• Only 10,000 US-NBT is on the sell order book in front of shareholder offered US-NBT.

The peg has improved in strength over the last day.

[Sabreiib]

Does anyone know how many NBT in circulation now?

[Phoenix]

Does anyone know how many NBT in circulation now?

Let’s calculate it. The liquidity operations team has 170,881 US-NBT not in the addresses listed in @mhps’s money supply calculation script. @mhps can you calculate the money supply with this info?

[Phoenix]

We have sold our first US-NBT since the peg was abandoned in late May. When we sell US-NBT from liquidity operations, the funds become part of our reserve and are used to place US-NBT buy orders at $0.995. We have begun the transition from filling our reserves with NSR to filling them with US-NBT. That is where we want to be.

The US-NBT price on Poloniex has stayed within the $0.995 to $1.005 range for all of the last 24 hours. There are $5600 in buy orders at or above $0.995 and an impressive $39,000 in buy orders above $0.975. That is probably more than 13% of all the US-NBT in circulation. It is huge buy support. The peg is getting stronger every day.

[Phoenix]

Looking like NuBit walls should! Just like old times:

[cryptog]

Impressive.

[Cybnate]

I am concerned that you lowered the peg in late May.

Well, I have no idea where you got that story from, but as said before it is not true.
I’ve operated under this grant: https://daology.org/proposals/efb13a1053b26c5770eac5b8ca6c5b994619069e and haven’t deviated from it. I give you the opportunity to use my existing infrastructure based on a solid track record. I don’t want or need to be in the lead, just spreading the risks by providing a service according to motions passed by shareholders.

Will leave it with you to take this opportunity or not. The only reason I’m doing this is because I believe in a pegged cryptocurrency, being a big shareholder and like to be at the forefront of cryptocurrency technologies. Therefore I like to support it.

Will have to renew a few services by the end of this month. If you haven’t responded by then I will decommission it. Else I will submit a motion for voting.

[Phoenix]

I am concerned that you lowered the peg in late May.

Well, I have no idea where you got that story from, but as said before it is not true.

I have investigated these competing claims a bit by reviewing posts from late May and early June. I found this from June 1:

[Passed] LiquidBits term 8 grant - Automatic Liquidity Pool (ALP)

I can't change the offset or the spread according to the motion. I was thinking of submitting a motion to make the offset variable/subject to FLOT guidance/decisions.

I can’t find supporting evidence for my claim, but I did find some for yours. I think perhaps my claim was based on some comments you made to @masterOfDisaster that appeared supportive of him lowering the peg. However, that is different than doing it yourself.

While I honestly thought my claim was factually correct, it wasn’t. That means I have been unfair to you @Cybnate. I’m sorry for that and wish I hadn’t made the mistake. Now that it is cleared up, I would like to have you join the liquidity operations team. Were you operating on more than just Bittrex? Will you propose a contract similar to what you have done with shareholders?

Let’s get liquidity on more than just Poloniex. We are ready to begin using NuLagoon Tube as well. @henry there are few specifics that need to be negotiated regarding that. I will contact you about those momentarily.

[Cybnate]

I think perhaps my claim was based on some comments you made to @masterOfDisaster that appeared supportive of him lowering the peg.

At that time it appeared to be the best way to defend the peg. Remember that the selling of NSR was delayed. In hindsight I probably should have pushed harder to sell more NSR immediately. But that was not deemed an attractive scenario at the time as there was no adequate source of income, only high liquidity expenses. I did stick to the shareholders’ approved motions though as you found out. I hope we all agree that we have a few lessons learned from that time.

I’m sorry for that and wish I hadn’t made the mistake

We are all humans and we keep on learning.

Now that it is cleared up, I would like to have you join the liquidity operations team. Were you operating on more than just Bittrex?

I have funds on Bittrex and Poloniex. See this thread for the latest status and tier distribution.

Will you propose a contract similar to what you have done with shareholders?

Will draft a proposal for the 2 existing gateways anyway.

Also like to hear your opinion about re-instating liquidity pools. Maybe the cost/risk model doesn’t provide the ROI we are looking for. Woolly’s new liquidity pool software offers more options though which we haven’t been able to fully explore. I still have a running VM with an instance of Woolly’s liquidity pools software which can be activated reasonably quickly if required. If it is no longer valuable in your opinion I like to decommission it to reduce costs.

[Phoenix]

There are now over $16,000 in US-NBT buy orders on Poloniex above $0.995. There are over $2000 of buy orders at $1.002. There is a total of $41,000 in buy orders at or above $0.96. That is very strong support of our currency, which has a money supply somewhere near 250,000. Approximately 7% of the entire currency supply could be sold at Poloniex without breaking peg.

We can regard the peg as having full strength when reserves are at the prescribed level. Until then, we are still in some degree of transition from being a supported floating currency to a strong and rigid peg.

Accessible reserves are only around $3700 right now. We do have about $25,000 in reserves being held by @masterOfDisaster and BTC FLOT in addition to that. As Chief of Liquidity Operations, I ask that @cryptog, @Dhume, @dysconnect, @masterOfDisaster, @jooize, @mhps, @ttutdxh, @woodstockmerkle coordinate transfer of all BTC funds under control of @masterOfDisaster and BTC FLOT to BTC address 1L55nYrmDEVSmwrLRBkXDCRc7kRJ9YDKVP. This is @jooize’s Poloniex gateway deposit address, so funds will immediately be placed on the buy wall. @ jooize, will you confirm this is your Poloniex gateway address please?

Who will create the BTC FLOT transaction?

With these funds we could have more than $40,000 in buy support at or above $0.995. That is a strong peg. We could buy back more than 16% of the money supply without losing the peg. Let’s do it people. Stop the fighting and start cooperating.