[Passed] 700M NSR For Deal with BarterTrade

NuShares Grants
#1 
Address: SUB431FXaoYg1vKjpEUGd8gmmDgipRaCAb
Value: 700000000

As mentioned in this post, an upcoming exchange named BarterTrade has an interest in developing a partnership with Nu. This would involve listing both NSR and USNBT on the BarterTrade exchange. Their model is to provide liquidity against low cap coins and as such they would like to purchase 125k USD value of USNBT and 225k USD value of NSR from Nu to support the pairs on their exchange.

The Nu team has been in direct contact with @torjusg and other representatives of BarterTrade and have discussed their plans around the listing and purchase of coins and believe it to be a very good move for the future of Nu.

Given the recent announcement by Bittrex that they plan to delist USNBT later this month, the major stumbling block in the deal (requesting a delisting from Bittrex) is now a moot point and it becomes more obvious that Nu should work towards the partnership with BarterTrade.

The liquidity team will need more NSR to fulfill the NuShare portion of the trade. This post is a request that Shareholders vote to generate 700 million (700,000,000) new NuShares at address SkfbmRQHQsceSvEvUqiBe3xRtc2PRWR7tv (2 of 4 multisig address) SUB431FXaoYg1vKjpEUGd8gmmDgipRaCAb (single sig). The price per NuShare will be calculated on the day of the trade as an average of the previous 2 weeks close price as given by CoinMarketCap.com. Currently, this calculation gives an average price of 0.0003815384615 USD, meaning that 225,000 USD will buy 589717741.9. This may change between now and the date of the trade so 700 million gives some leeway should the price increase.

Nu will support the NSR and USNBT pairs provided by BarterTrade with the existing lambda-bot infrastructure. Any NSR remaining from the trade will be used by the liquidity team to support the NSR pairs at BarterTrade.

This post is now open for discussion. Assuming no major objections or changes it will be opened for voting in 24-48 hours and shareholders will be invited to enter details into the clients at that time.

The partnership with BarterTrade represents a big step forward for Nu. It will provide a much needed boost in terms of capital and exposure and will accelerate the current work to regain and maintain the peg.

In response to the reply from @smooth later in this post, I will outline the intention for the funds raised through the deal with BarterTrade, as well as the plans for restoring and maintaining the peg:

  • The NSR will be traded for BTC using an Escrow of BarterTrade’s choosing.
  • The BTC received will be held at a 2 of 4 multisig address which will be generated for this purpose. Further detail of this address will be published once it is created.
  • The address will be added to the list of addresses at https://grafana.crypto-daio.co.uk so that it can be incorporated into the equilibrium calculations.
  • The funds raised will be used to support the Bot infrastructure currently deployed by the Nu liquidity team.
  • These bots will have two distinct purposes
    1. Supporting the peg on Nu currency pairs
    2. Spread trading on non Nu pairs on BarterTrade and other exchanges
    3. Arbitrage trading on BarterTrade and other exchanges (still in development)
  • The last two purposes listed are intended to make a profit from spread and arbitrage trading which will, in turn, allow for the weekly buyback and burn of USNBT. Previous discussions of this plan had proposed using 0.1% of the Asset Reserve per day for this buy back. With the additional funds from the BarterTrade deal, the asset reserve would sit at ~$516,000 meaning a daily buyback and burn of $516. These figures are provisional and should be open to further discussion by shareholders.
  • While this process is manual a weekly burn would be preferred. The intention would be to automate the process as soon as possible.
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#2

Why not try to collect those 700m Nushares from our community via donations
and take the 225k USD from Barter Trade and invest the money in buying Nushares.

These new acquired Nushares we give back the community via airtrop,
airdrop could be done over Barter Trade.

Advantage:

  • Nushare amount and price wouldn’t be liquefied.
  • Airtrop will attract attention to Nushare and Barter Trade.
  • No centralisation of votes.

Disadvantage: Open to discuss

PS: I would take part on this project without obligation by donating 10% of the 700,000,000 required Nushares if the Nubit community can collect more than
400,000,000 Nushares.

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#4

Let me briefly reply to this one. I have personally been a fan of the Nu project for a long time. I think it is on of the most interesting stablecoin concepts out there.

What our specific plan is with Nubits is to use it as our primary stablecoin and in time gradually reduce dependency on USDT. In the beginning we will be using USNBT as the dollar peg pair for smaller coins which we list. We are also planning on enlisting the help of Nu when breaking into new markets (either currency or commodity derivatives). Providing liquidity will be our number 1 revenue stream and keeping variuos NBT coins stable will be an important part of our business model.

I think the imbalance created between NSR and NBT when Bittrex delisted NSR is understandable. Especially considering that NBT experienced a influx well beyond capacity when USDT fears were running high. With this imbalance sorted by the Bittrex delisting, it should be relatively straightforward for us, in cooperation with the Nu team, to bring NBT back up to 1 USD and keep it stable there.

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#5

That’s a very kind offer!
The main reason for the request for new NSR is the timescales we are working to. BarterTrade are eager for the NSR and USNBT to be in place when their exchange begins operation. We may be abe to Crowdfund the 700,000,000 NSR but I fear it would take much longer to raise them and we would risk the whole deal falling through.
I may be wrong though. If there is community support for this proposal, please let the Nu team know either here or by PM. If there is enough interest in raising even a portion of the NSR needed for the trade in this way we could offset the total amount for sale and airdrop the remainder. It would be interesting to see what support that method has. I think we need to keep this proposal in place for now though in order to fulfill the trade.

#6

Print more and raise funds for regaining and supporting the peg!

If there were a way for me to categorically prove that I’m telling the truth I would do so. It’s true that the Nu team is vastly reduced in number and the effort that can be bought to Nu. Loosing the peg hurt us hard. Work has been continuing in the background but, again, at a reduced rate. Myself, I’ve been working on swapping the peg bots over to spread trading to try and put in place a method by which funds can be raised in a sustainable manner when the peg is regained.
This trade with BarterTrade would increase the ability of the Nu to buy back USNBT, increase the value and regain the peg.
It saddens me that you feel there has been deception. I agree that the situation has been far from ideal but we now have an opportunity to put that right. The Nu team in place currently isn’t going anywhere and with a new partnership with BarterTrade and their representative here @torjusg in place, should be able to devote more time and effort to Nu once more.

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#7

What will be done with the proceeds from the sale?

#8

Mentioned in Woolly’s post above yours:

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#10

When no one sells their Nubits for less than US$1 :slight_smile:

Can’t talk for the liquidity team, but the funds will gradually be used to buyback as per Wooly’s earlier post. It is probably not very smart to publicize a detailed buyback plan and then spend a lot of money on buying out speculators.
When you read the forum you will find out many strategies the team might use to restore the peg.

#11

raise funds for regaining and supporting the peg funds for regaining and supporting the peg … Can’t talk for the liquidity team, but the funds will gradually be used to buyback

That’s very nice but it should surprise no one that there is a significant trust and transparency deficit when it comes to the “liquidity team”.

I would suggest that if said team is proposing to make a very significant issuance (dilution) of NSR in exchange for payment that represents a very significant portion of the entire market cap, that a more detailed accounting be made of the proceeds, where it will be held, what processes will be put in place to control its custody and disbursement and so forth.

woolly wrote:

It saddens me that you feel there has been deception. I agree that the situation has been far from ideal but we now have an opportunity to put that right

‘Putting it right’ means more than yet more secrecy and non-transparency. Please incorporate significant process and governance improvements in this proposal not only in light of the perceived or actual past deception but to better ensure and demonstrate not only that such deception does not and will not continue, but that the affairs are placed above suspicion of deception.

With that said, I do support the concept being proposed.

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#12

Thank you for the reply and for raising good points.

I have updated the original post with some details of the intention for the funds and the outline of the plan to both support USNBT and regain the peg.
Making Nu less opaque has long been a goal of mine. I think I got some of the way with the data made available at https://grafana.crypto-daio.co.uk. There is always more that can be done though and I would welcome suggestions as to what data you and others would like to see there.

I feel this partnership with BarterTrade is worth pursuing even if it means diluting NSR. The other option is to carry out the plan as outlined above but with a vastly reduced fund meaning a much longer recovery time. The BarterTrade deal can kick start this recovery plan with the huge bonus that we will have equally strong USNBT and NSR pairs. The lack of a strong NSR pair was, I believe, a contributing factor to the loss of the peg. With the plan above we will also have an income from trading activities. Lack of an income to assist the “liquidity engine” has long been a criticism of the Nu model.

As mentioned by @torjusg, BarterTrade intends to utilise USNBT as a stable USD analogue on their exchange. Their model relies on USNBT being a stable $1 coin once more. As a partner, I don’t think Nu could do any better.
With the input of funds, a fruitful partnership with BarterTrade, strong and supported trading pairs for USNBT and NSR and a sustainable income we will be in a much stronger position to get USNBT back to trading at $1 and be more confident in the strength of the peg.

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#13

Is the intent to bring the peg back as soon as possible or a slow gradual restoration? “meaning a daily buyback and burn of $516” - This sounds like it would take months if not years to restore the peg.

#14

As mentioned in the Original post, the numbers used for those calculations are provisional and were based on conversations had before the partnership with BarterTrade was known about. Those conversations within the Liquidity Team concluded that regular smaller buy-backs are the preferred method to regain the peg rather than a large singular buy-back.
I think that with the partnership in place and the other benefits I spoke about in my last post, Nu will be in a better position to open this talk out to Shareholders to decide how to approach the restoration of the peg and the amount of funds to use in buybacks and how quickly.

#15

I have opened this custodial grant for voting. Could voting share holders please add the amount and address from the original post to their clients and begin voting for this grant please.
In looking at the Block Explorer I realised that the address listed in the original post has been previously used for an NSR grant so cannot be used again. A new Multisig address will be created by the team and posted when ready. apologies for the oversight.

#16

I think it will be best to buyback ASAP with the funds from the Bartertrade deal.

#17

It’s more likely that BTC goes up in the next months,
therefore it would be wise not to concentrate too much on Nubit.
Better invest these funds now into BTC or Nushares until BTC
and Nushare market is saturated.
Soon after market saturation, sell BTC and Nushares and shift
these funds into Nubit.
This would be the strategic better procedure, what likely bring
Nubit back to 1 U$.
Probably this method is more time-consuming but in the end
much more effective.
Also try to get major investors involved for a common strategy.

#18

I have to disagree with you on this,it’s already been a year now and there is no point in waiting months again.And BTC might fall back to 3k zones and only after that correction it will go up.The team has a good opportunity here to fix the peg shortly and Bittrex might avoid the delisting.

#19

As mentioned above I think it’s actually a good thing that Bittrex delists NBT before attempting to fix the peg. Have a conversation later on after the peg is restored with Bittrex to relist nbt AND add nsr then after it’s been proven to be stable again. At that time it should also be requested to add usdt,tusd,pax,usds and usdc pairs as well.

#20

Once you get delisted it’s really hard to get relisted in Bittrex.It’s best to get this sorted out before it get’s delisted.The sell book is currently not much big and if they act now to fix the peg,it will really work.

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#21

I don’t see anything wrong with a gradual buying program to restore the peg. It does no good to restore the peg for one day only to have it collapse the next. I might quibble with 0.1% per day (approximately a three-year spend-out rate), but that’s probably not so important, assuming that the funds don’t end up somehow disappearing over the course of three years.

@woolly_sammoth

Who are these four people holding the keys to the multisig? I’m going to assume they are all existing members of the ‘liquidity team’, which happens to be the exact same actors for which there is a significant trust deficit (whether deserved or not).

Confidence (and therefore prospects for outside investment and recovery) would be improved significantly by recruiting some better-trusted key holders, at least in addition to the existing team if not in place of.

#22

@XRomeoX, @Ghaleon . Part of the deal with BarterTrade was to request a de-listing from Bittrex (as mentioned here. They do not feel that they would be able to compete with a strong pair at Bittrex during their first few months of operation. Their model is to try and attract USNBT holders to the BarterTrade exchange from Bittrex.
The announcement from Bittrex was double edged sword. It meant we lost the Bittrex pair but it meant that we fulfill the criteria for the deal.
The upshot of this portion of the deal is that to get the funds from BarterTrade, we won’t be chasing the listing at Bittrex now or in the foreseeable future.

@smooth. The 4 holders of the multisig keys for the original address posted were myself, @Phoenix, @Cybnate and @jooize. I posted a message to the Liquidity Team chat room on Matrix last night regarding generating a new Multisig address. I have yet to have any response. This is a pattern that has become fairly common in recent months as team members (myself included) have other draws on their time. The team is widely distributed so disparate timezones also play a part in that.
I for one would welcome new members to the team and especially the multisig key holders. If it meant that the team became more dynamic I don’t think it could hurt Nu at all. The issues for multisig key holders has always been that they should be reachable and able to quickly debate and agree on an outcome for funds. We have suffered in the past from a multisig teams inability to decide on a course of action and that is something that should be avoided if possible. Would you put yourself forward for such a key holder position?

The concern in all of this is that it takes time to organise. BarterTrade are working to fairly short timescales with the launch of their exchange and would ideally like to have the NSR and USNBT in place for the launch. Given that, are there any objections to me utilising a single signature address for this Grant if the other Nu team members remain unreachable for the next 24 hours or so?