Up until NuBot v0.3.1, all the available liquidity was put up on a large single order, according to the initial design outlined in the whitepaper. Starting from NuBot v0.3.2 and following the evolution of liquidity operation (read community discussions one - two - three 4 ) the bot implements the multi-tier liquidity model.
In this model, NuBot places the vertical walls at the best price (Tier1) along with a tail of orders distributed at premium prices and controlled by bot operators: the parametric order book.
By managing liquidity this way operators can mitigate risks of being exposed to volatility and malicious actors while still providing a solid 1$ peg.
The model is simple and at the same time flexible enough for making it fit in different market scenarios.
If you launch NuBot with the GUI, you will be able to change parameters and see a real time preview of how changing parameters affects the shape of your orderbook. The options below are not required and we highly suggest to omit them. NuBot will use the default options automatically.
|Parameter||Default value||Description||Admitted values|
|bookDisabletier2||false||if set to true, will only place the tier1 walls||boolean|
|bookSellwall||500||maximum volume to put on sell walls at best price (tier1)||double , expressed in NBT ; 0 allowed|
|bookBuywall||500||maximum volume to put on buy walls at best price (tier1)||double , expressed in NBT ; 0 allowed|
|bookSellOffset||depends on currency (0;0.01;0.025)||offset from target price||double , expressed USD.|
|bookBuyOffset||depends on currency (0;0.01;0.025)||offset from target price||double , expressed USD.|
|bookSellInterval||0.008||interval price between two sell orders||double , expressed USD. (0.000001,0.3)|
|bookBuyInterval||0.008||interval price between two buy orders||double , expressed USD. (0.000001,0.3)|
|bookSellMaxVolumeCumulative||0 (unlimited)||maximum cumulative volume of open sell orders||double , expressed USD.|
|bookBuyMaxVolumeCumulative||0 (unlimited)||maximum cumulative volume of open buy orders||double , expressed USD.|
|bookSellType||exp||shape of the curve||String , linear; exponential; logarithmic;|
|bookBuyType||exp||shape of the curve||String , linear; exponential; logarithmic;|
|bookSellSteepness||mid||steepness of the curve||String , flat;low;mid;high|
|bookBuySteepness||mid||steepness of the curve||String , flat;low;mid;high|
Below, a sample JSON representation of the model, to add to custodian configuration file.
This section will specify the dynamics of the orders on the orderbook, i.e. how orders are handled over time. [tbd]