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.