Post
Topic
Board Marketplace (Altcoins)
Re: Ahead to Nu worlds! (liquidity provision for fun and profit, 9% monthly return)
by
inuit_wallet
on 01/06/2015, 10:16:16 UTC
Quote
assuming all things remain the same

It should be mentioned now that things aren't expected to stay the same. The aim of the Trustless Liquidity Pools is to lower the cost of providing liquditiy to the Nu network. This is to be done by increasing the level of competition between pools. There is currently a rough feeling  that the cost to Nu of providing liquidity should be ~10% of the amount of liquidity brought to market. As NuPool is the main active pool currently we are able to offer the current rate of 9% for this month. Every 30 days we, as pool operators, need to re-apply to Nu for a grant to fund the compensation for the next 30 days. As more pools come online and the competition increases, the share of this 10% that each pool can command will be reduced.

Pools such as LiquidBits and NuPond have been testing for a while and are now coming online. As the targets of liquidity aimed for by these pools increreases so will the competition between pools. It would be beneficial for pool users to keep an eye on which pools are offering the best rates of return, on which exchanges and pairs and which have gaps in the liquidity targets (allowing for maximum raturns to be gained). Efforts are underway to display this information for ease of digest. The raw data can be seen here https://raw.nupool.net/?pairs=true&json=true. It will eventually be used to display data on the nubits.com site.

I don't know what compensation levels will be on offer from NuPool in the coming months, only that it is likely to change from now.