[Withdrawn] T3 Trusted Custodianship @Nagalim

NuShares Grants
#1

Proposal RIPEMD160 hash: e999d2b6471c2bb4f964aa1c09fbc0bfef4e0546

=##=##=##=##=##=## Custodian Hash starts with this line ##=##=##=##=##=##=

Custodial Address: BAoDAU3GwBVyaWC99kfUgJftzgi2FwuXDF
Amount Requested: 1000 NBT

Collateralized Custodianship

Upon the passage of this grant, @Nagalim will burn 500,000 NSR. FLOT will then provide @Nagalim with $1,000 of BTC as part of the weekly Tier 4 overflow calculation.

T3 Operation

@Nagalim will perform Tier 3 operations defined by the purchasing of NBT at $0.997 and the selling of NBT at $1.003 off-exchange. Only btc and nbt will be accepted, and any chosen prices will be recorded with day, time, price, and exchange of reference. No trade of less than $250 volume will be accepted.

Tier 4 Interactions

Each week, FLOT will refill either side of @Nagalim’s pool that has less than $500 total funds to $1,000 using the weekly declared BTC price by Tier 4 signers during the Tier 4 overflow calculation. If @Nagalim holds >$1,500 on either side of the pool for longer than 12 hours, funds will be moved to a Tier 4 address to bring the pool back to $1,000. @Nagalim will be compensated with 0.2% of the trade volume (total number of NBT involved in non-tier4 transactions) paid in NBT either through Tier 4 or periodic grants. In this way, Nu only profits with a 0.1% spread, but manages to have a wider liquidity network for just the cost of the collateral risk.

Operation’s end

If @Nagalim decides to end operation, it is understood that the shareholders will grant a fresh 500,000 NSR upon a graceful exit and replacement of Tier 4 funds.

Disclaimer

Shareholders are to realize that this is a trial and temporary operation. Audits and Liquidity Reporting will be looked into and possibly developed using future grants. This grant will hopefully stimulate a collection of T3 custodians such that FLOT must only sign one big Txn once a week and won’t be called in to fill T1 pools so often.

=##=##=##=##=##=## Custodian Hash ends with this line ##=##=##=##=##=##=

Verify. Use everything between and including the <custodianhash></custodianhash> tags.
6 Likes
Current Liquidity
[Passed] T3 Trusted Custodianship: @Nagalim - Second Attempt
[Question] Contract enforcement, doomsday, risk, etc (this topic is not very focused)
FLOT BTC Operations (buy side)
How much percentage of NuBits in circulation should the buy side liquidity (over T1~T3) sustain constantly?
#2

A T3 custodian who helps sorting out T1 issues is very much appreciated!
Based on the current market price of NSR the 500k NSR are approximately worth 6 BTC (500,000 NSR * 0.000012 BTC/NSR).
So you are going to offer more collateral (at curent rate $2,500) than the granted NBT and BTC are worth ($2,000). Sounds good from Nu perspective!

The compensation of 0.2% of the traded volume sounds small. I mean, considering the minimum limit of $100 for a trade, that gives you $0.2 for such a trade. This is close to nothing for the effort!
I think you should raise the limit to $500, because even a T3 custodian shouldn’t be bothered several times a day for trading small amounts.

Do you consider balancing own T1 funds (e.g. on NuPond) with this? That would be quite convenient.

#3

measured by using… Last,bid,ask, average , weighted average ?

as specified in …?

Refill with how much?

#4

T4 makes a weekly declaration of the BTC price.

This grant right here :smile: I’m hoping this becomes like a thing people do that we can call Tier 3 operations.

Up to $1,000 on each side.

#5

ok, then specify this information in the body of the grant so is un-ambiguous

#6

So lots of things can happen. The most I could possibly ever be holding at any given time and remain within contract is actually $4,000. This could happen if I sell BTC such that my ask side goes to $1,999 and then the BTC price shoots up such that the bid side is also worth $1,999. This still would not trigger my thresholds for overflow to T4.

Edit: I reduced this to $3,000 maximum.

Good?

1 Like
#7

I posted the address for voting. I will post a hash when the assistant bot responds.

I intend on using a bitcoin core wallet and make no promises about my availability, but hopefully every time I participate in a trade we all will win.

1 Like
#8

What is the difference with @Nagalim participating into a pool?

#9

Providing service on T3 instead of T1?

1 Like
#10

I will be paid by the Txn instead of by the minute. It’s a completely different reward system from T1

1 Like
#11

What s the purpose of this proposal?

Concretely, how are you going to take 0.2% of trade volume?

#12

I have a 0.3% spread. I charge Nu 0.2%, therefore there is 0.1% straight profit for Nu from every transaction (assuming random price feeds). I will add up the number of NBT in all non-T4 transactions, multiply by 0.002, and ask someone (T4 or shareholders) for that amount sent to a private address. It’s not much, but it would be if I had a bigger credit line and thereby a higher minimum Tx size.

I will attempt to report this as T3, so ideally there will be $1000 extra T3 buy and sell side reported liquidity as long as I’m not empty. However, I get the feeling I’ll probably be emptying my coffers every week very quickly.

#13

Voted, interested how this “trial” run so to speak will unfold. Could be a solution to our T3 problem.

#14

Not voting for this, NuLagoon Tube is superseding this imo although further testing may need to occur.

#15

So you think we only need one T3 custodian?

#16

Maybe I misunderstood, but everyone can make transactions on NuLagoon Tube. Questions is what is the incentive to do that for each Shareholder. Still thinking of that, but I think another model is required than what you propose.

Edit: what might be required is more instances of NuLagoon Tube. We are still waiting whether this solution will be open sourced or not.

#17

So the question comes down to how T4 distributes funds. NuLagoon’s tube actually does very little to change the liquidity situation (though I still totally appreciate the initiative). NuLagoon simply has a limited amount of buy and sellside funds. What’s more, NuLagoon balances using arbitrage. While this is a fabulous service for T1-3 fluidity, it really is not the most efficient entry point for T4 because it will attempt to balance itself.

What I am proposing increases total liquidity in the network and creates an efficient entry point for T4 funds. My proposal will service NuLagoon and will be a place NuLagoon can rebalance from for cheap. I don’t have the funds that NuLagoon has, but this proposal is the start of a new category of T3 custodian.

The way I see it, there are 3 types of T3 custodian, depending on where they get their funds.

  1. T1-3 MLP has funds already and is trusted to report T3 accurately by virtue of a connection with the directly verifiable T1.

  2. Trusted T3 custodian. This type uses Nu’s funds, and so must already be trusted. Whether this is accomplished via collateral or simply pseudonym recognition, the custodian has an incentive to report accurately.

  3. T3 custodian using their own funds. This is an unsolved problem that I am trying not to get into here. There are possibilities, but it gets complicated. The issue stems from what reward mechanism we use to pay custodians.

Basically, why would a person hold btc and nbt in their own tube without getting paid by Nu for doing it? And if they’re getting paid, what incentive do they have to perform? Finally, if they are being paid to perform, how do we ensure they aren’t just trading with themselves to rack up fees? It makes sense for NuLagoon as an MLP, it doesn’t make sense for anyone else. So even if they open source we will still only have one T3 provider.

2 Likes
[Withdrawn] End of NuLagoon Operations
#18

To me it is not clear what the motion intends to do in terms of liquidity operations.

#19

It provides $1000 T3 buy and sell side liquidity indefinitely.

#20

What is the cost for Nu shareholders?