Bitcoin Forum

Hey guys, USDbitfnx here!

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Today I am presenting you the first USD asset on the NXT asset exchange, that will be backed by real USD deposited on bitfinex.com (https://www.bitfinex.com/?refcode=1NrFf6t4Nr). The USD will be used to provide liquidity for traders on bitfinex and will in return pay intrest. This interest will be distributed once every 2 weeks to the asset holders of USDbitfnx. Assets can be either bought on the NXT asset exchange or by contacting me and depositing BTC or NXT.

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The main discussion topic can be found here: https://nxtforum.org/index.php?topic=3884.0

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Details about the swap program of bitfinex, can be found here: www.bitfinex.com/pages/howitworks (http://www.bitfinex.com/pages/howitworks)
Stats about the historical rates of those swap agreements, can be found here: www.bfxdata.com/swapstats/usd.php (http://www.bfxdata.com/swapstats/usd.php)

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Forum Administrator Damelon agreed to do an audit once a month, starting from the point we reach 10,000 USD in the bitfinex account (https://www.bitfinex.com/?refcode=1NrFf6t4Nr)! Thank you!

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For those unfamiliar with the NXT asset exchange, you can find details here: http://wiki.nxtcrypto.org/wiki/Asset_Exchange
A very easy way to use the NXT asset exchange is: https://trade.secureae.com/#10294386916428132892

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The spreadsheet is now online and I will try to update it daily

https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml

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Name: USDbitfnx
Quantity: 5,000,000
Asset Decimals: 2
Asset ID: 10294386916428132892

Description: Each 1 USDbitfnx asset represents 1 USD deposited at [ur=https://www.bitfinex.com/?refcode=1NrFf6t4Nrl]bitfinex.com[/url] . The USD deposited at bitfinex will be used to provide liquidity to margin traders that pay a fee for that service. This interest is paid daily into our account and is currently hovering at about 0.16% per day(~60% yearly return). This dividend will be distributed proportionally to USDbitfnx holders every two weeks. Details about fees, risks and how to deposit, can be found in this thread on nxtforum.org: https://nxtforum.org/index.php?topic=3884.0 (https://nxtforum.org/index.php?topic=3884.0)

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Bitfinex USD Asset
Promoter(s)
Bitfinex_USD
What is it?
Each 1 USDbitfnx asset represents 1 USD deposited at bitfinex.com (https://www.bitfinex.com/?refcode=1NrFf6t4Nr) . The USD deposited at bitfinex will be used to provide liquidity to margin traders that pay a fee for that service. This interest is paid daily into our account and is currently hovering at about 0.16% per day. This dividend will be distributed proportionally to USDbitfnx holders every two weeks.
How many shares to be created?
5,000,000
How many shares to be sold?
The amount of USD in the bitfinex account will determine how many USDbitfnx assets will leave the Issuer Account.
What price will they be sold at?
Market price, whatever people judge them to be worth.
Nxtforum discussion
https://nxtforum.org/index.php?topic=3884.0 (https://nxtforum.org/index.php?topic=3884.0)
Nxt account used to issue assets
NXT-BQK9-UDGP-2Q97-49H3L
2956023623281072679
Asset ID
10294386916428132892
Ticker Symbol
USDbitfnx

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FAQ:

How to deposit BTC or NXT?
BTC deposit: Just send me a PM here or on NXT-BQK9-UDGP-2Q97-49H3L and I will provide you with a BTC-Deposit address. The BTC will then be exchanged for USD asap on bitfinex. The equivalent USD amount will be sent to your NXT account using the USDbitfnx asset.
NXT deposit: Just send me a PM here or on NXT-BQK9-UDGP-2Q97-49H3L and I will provide you with a NXT-Deposit address. These NXT will be sold on bter.com and the BTC transferred to bitfinex.com. The BTC will then be exchanged for USD asap on bitfinex. The equivalent USD amount will be sent to your NXT account using the USDbitfnx asset.

Hint: Please think about depositing BTC, rather than buying USDbitfnx on the AE in the beginning, to increase the liquidity of this asset!

Who am I?
I am a senior member of the NXT and bitcointalk community that is active and registered for four years. Due to regulatory risks, I try to keep my identity as separate from this project as possible. Administrator and community member Damelon agreed to verify this and will confirm this in this thread soon. He also knows my real identity and if I go rouge he will release my identity.

How will the USD be managed?
The USD will be invested in the swap-market on bitfinex and this will happen actively, so I will likely outperform the average lender there.

How will the dividends be paid?
Every 11200 blocks or 2 weeks the dividends will be paid. Every asset holder of USDbitfnx will receive his dividends paid in USDbitfnx. Example (ignoring fees): Lets assume there are two USDbitfnx holders with 400 and 600 assets. Now 25 USD in interest was earned in the last two weeks. This will now be distributed in the following way: 25/(400+600)* 400 = 10 USD   25/(400+600)*600 = 15 USD. Assuming that 1 NXT is worth 0.05 USD, then assetholder 1(400 USDbitfnx) gets 9.95 USDbitfnx as dividend and assetholder 2(600 USDbitfnx) gets 14.95 USDbitfnx.

How much fees do you charge?
Deposit with BTC: Only the 0.1% exchange fee on bitfinex!
Deposit with NXT: Only the 0.1% exchange fee on bitfinex and the 0.2% fee + 0.0006 BTC charged by bter.com!
Withdraw with BTC: 0.1% exchange fee + 0.5% personal fee (min 5 USD)
Dividend Fee: 1 NXT + 5% of the dividend amount
These fees are not permanent and can be subject to change!

How do you prove that you don't run a fractional reserve? Audit?
I have already asked Damelon if he could make an audit once a month, and I am sure that I will find someone very trustworthy to do this once a month (or on request!).

What risks are involved when holding this asset?
-Exchange risk: Holding USD will make you experience quite some volatility measured in BTC or NXT.
-Insolvency risk: Even though Bitfinex is a registered company and currently very profitable, a market shock, a hack or severe mismanagement (like mtgox) could happen.
-Theft risk: I will try my best to keep the funds safe and will use all security measures provided by bitfinex (2FA ect) to secure the account, still it is not possible to prevent every aspect of attacks.
-Trust risk: You will have to trust me to not run away with the funds. Given the fact that the administrator of this forum knows my identity, this scenario is pretty unlikely though.

What is the current balance of the bitfinex account?
The name of the USDbitfnx account is: NXTpassthrough
Current balance of the account: $12450
https://i.imgur.com/D42uyza.png

The spreadsheet is now online and I will try to update it daily

https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml

Do you have a refferal code, so that I can get 10% fee discount?
https://www.bitfinex.com/?refcode=1NrFf6t4Nr

sdfsdfsdfsdfdsfsdf?

I broke my tongue when I tried to speak that.

Interest:

Day 1: $2.12
Day 2: $8.90
Day 3: $12.54
Day 4: $14.77
Day 5: $15.28

Accumulated: $53.61

https://i.imgur.com/xh8fXl5.png

Details can be found here: https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml

Projected total payout on day 7/8: $85.61
Projected payout per USDbitfnx on day 7/8: 0.0068USDbitfnx/USD   (6.8 USDbitfnx per 1000 USDbitfnx)

The actual payout per 1000 USDbitfinx will eventually even out at around 0.8-1% (per week)





This is due to the digit limitation in the NXT asset name ;) 

Optimally it would be called USDbitfinex!

Daily Interest Update:

Only 1 more day till the first dividend will be paid!

Day 1: $2.12
Day 2: $8.90
Day 3: $12.54
Day 4: $14.77
Day 5: $15.28
Day 6: $15.94

Accumulated: $69.55

https://i.imgur.com/9lIDW9u.png

Details can be found here: https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml

Projected total payout on day 7/8: $85.61
Projected payout per USDbitfnx on day 7/8: 0.0068USDbitfnx/USD   (6.8 USDbitfnx per 1000 USDbitfnx)

The actual payout per 1000 USDbitfinx will eventually even out at around 0.8-1% (per week)

Regards

SO if I own an asset, you just pay the dividend to my NXT wallet address?

we all do not like ae system

Why are you reading this thread then?

Yes, but the dividend won't be in NXT but in USDbitfnx, so that you get the compounding interest effect.


Why do you dislike the NXT asset exchange?

I am not paying that amount, but the traders on bitfinex.com are! You can check the current rate here: http://www.bfxdata.com/swapstats/usd.php

I just got audited and the result of that audit is here:
https://nxtforum.org/index.php?topic=3884.msg72567#msg72567

We have been added to coinist.co a coin and asset rating site. Please leave some constructive feedback of this asset here: https://coinist.co/nxt/nxt-assets/USDbitfnx-nxtbqk9udgp2q9749h3l

I feel I must be missing something..
What's the benefit of adding you as a middle hand in this?

From the looks of it, the interest you offer follows the bitfinex FRR to the decimal.
And if I read your announcement right, the risks are exactly the same as if we would all offer our funds as liquidity directly from our accounts on bitfinex, except for the uncertainties regarding you.

We don't know who you are. The good thing about this, I guess, is that (hopefully), this makes hijacking your account harder for potential attackers.
Problem is that - aside from your word, your personal view of how security aware you are - we have no way of knowing if what passes as safe to you, would pass as safe to us.

Additionally, Damelon, who I was not previously familiar with, but who is indeed administrator on nxtforum.org, and who did confirm your statement regarding knowledge of your identity, kinda...


I might be going at this a bit too aggressively, but stating to have proven your identity to someone by sending a PM (even if it was in fact from a senior account, and even if there was an obvious, non-disputable link between those accounts (which we - as potential investors - so far know nothing about)), and a skype call, is what I personally would call an overstatement.

What kind of verification was done using skype? ID?
IDs are easy enough to forge, and if they are only needed to look legit when held up in front of a webcam, scanning an ID, manipulating the details, printing it and laminating it could be done in an hour or two.


For me to willingly invest the suggested (or example, if you prefer) amount of $1000 into an account that is out of my control, and get a divend once every two weeks at the same rate that I would receive if I were to offer the same amount for liquidity on the same exchange, from my own account, I would need some sort of benefit that I wouldn't get if I were to just use bitfinex' autorenew feature at FRR rates on my own account.



So, again.. What am I missing?

interesting, will watch this.

+1, hope dev can clarify this?

(this is a repost from the nxtforum thread)

I will try to structure my answer:

So, why is it better to have USDbitfnx than managing the own bitfinex account?

- simplicity: Several steps of work are not neccessary when using USDbitfnx instead of own account. E.g.: No managing of swaps, security concerns, everything is in the NXT AE account in one place.
- tradebility: When using the own account to provide USD for swaps you are bound to the lending time. To get good rates, one has to offer +15 day terms. This makes the funds stuck for a longer period and also never all funds are available at the same time. Once this asset takes off, the tradebility will be very good, with enough liquidity in the market for this asset.
- competibility: When using this service, the funds are actively managed, thus resulting in an average higher lending rate and shorter downtimes (funds not lent, this is a big problem). The time alone that is needed to do this would only be worth it for larger accounts!
- profitability: Given the points "tradebility, simplicity and competibility" you have to calculate with opportunity costs. Will the saved time, the higher lending rates, the shorter downtime, the higher liquidity be worth the fees, that I am charging for this? If yes: then you would be adviced to use this. If not: well, then you should actively manage your own portfolio!

As for the ID thing. The real account of mine is strongly connected to my identity. This seperation is stricly because of regulatory reasons. I can have Damelon confirm that he indeed knows my real identity, if that would be preferable.

Edit: I didn't just send a PM to Damelon to confirm his identity, he knew me already for quite some time. Also we are in close contact to each other, because he is also doing the monthly audits to prove the liquidity.

Edit 2: No funds will be lent out with FRR, as this is not the most profitable way to lend.

Dividend Payment was successfully sent!

A total of 82 USDbitfnx assets (incl. 5% fee) were distributed to all asset holders. This time the 1 NXT transaction fee was NOT deducted from the amount, thus resulting in <10 USDbitfnx holders also getting a dividend! This was a one time gift from me, so please don't expect this in the future!

Day 1: $2.12
Day 2: $8.90
Day 3: $12.54
Day 4: $14.77
Day 5: $15.28
Day 6: $15.94
Day 7: $15.98

Accumulated: $85.53

https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml

The next dividend will be paid in exactly 2 weeks!

I'm not sure I agree that having all the assets in one place is necessarily a good thing, but I can't say that I've got any manageable alternative suggestions, in other words, while I agree with your choice of having them in one account, I'm a bit concerned that the balance of your account alone might attract too much unwanted attention for my preference.

This makes sense. Thank you for clarifying this.

Thanks to the edit, this makes sense as well.

Point taken. And I agree with your logic.



I might have exaggerated my concerns regarding your identity. I fully understand you do not wish to expose your identity, and get phone calls in the middle of the night 365 days a year.
My only excuse is some recent news articles that awakens paranoia, specifically the article from a couple of weeks back about the fraud at btcjam (http://www.coindesk.com/industrial-bitcoin-mine-employee-disappears-190k-alleged-theft-fraud/)


That being said, your detailed explanations are very much appreciated
To me, the purpose and business model of this asset is clear now.

Thank you.

Interest, Week 2-3:

Day 1: $15.44
Day 2: $15.57


Accumulated: $31.01

Projected total payout on day 14/15: $226.8
Projected payout per USDbitfnx on day 14/15: 0.01512USDbitfnx/USD   (15.12 USDbitfnx per 1000 USDbitfnx)

The actual payout per 1000 USDbitfinx will eventually even out at around 15-20USDbitfnx (every 2 weeks)

https://i.imgur.com/lvw44Hm.png

Details can be found here: https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml



Regards

Interest, Week 2-3:

Day 1: $15.44
Day 2: $15.57
Day 3: $15.82
Day 4: $15.44
Day 5: $15.37


Accumulated: $77.64

Projected total payout on day 14/15: $217
Projected payout per USDbitfnx on day 14/15: 0.01496USDbitfnx/USD   (14.96 USDbitfnx per 1000 USDbitfnx)

The actual payout per 1000 USDbitfinx will eventually even out at around 15-20USDbitfnx (every 2 weeks)

https://i.imgur.com/U4wCBa6.png

Details can be found here: https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml



Regards

Interest, Week 2-3:

Day 1: $15.44
Day 2: $15.57
Day 3: $15.82
Day 4: $15.44
Day 5: $15.37
Day 6: $14.81
Day 7: $14.20
Day 8: $14.16
Day 9: $14.53
Day 10: $14.07

Accumulated: $149.41

Projected total payout on day 14/15: $210
Projected payout per USDbitfnx on day 14/15: 0.01346USDbitfnx/USD   (13.46 USDbitfnx per 1000 USDbitfnx)


https://i.imgur.com/JNtkZJe.png

Details can be found here: https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml

Regards

TOMORROW IS DIVIDEND DAY!

Interest, Week 2-3:

Day 1: $15.44
Day 2: $15.57
Day 3: $15.82
Day 4: $15.44
Day 5: $15.37
Day 6: $14.81
Day 7: $14.20
Day 8: $14.16
Day 9: $14.53
Day 10: $14.07
Day 11: $14.17
Day 12: $12.60
Day 13: $13.46
Day 14: $13.53

Accumulated: $203.17

Projected total payout on day 14/15: $216
Projected payout per USDbitfnx on day 14/15: 0.0138USDbitfnx/USD   (13.8 USDbitfnx per 1000 USDbitfnx)


https://i.imgur.com/roiAo47.png

Details can be found here: https://docs.google.com/spreadsheets/d/1bSej427-QIqm3ls-r3pIwV8XWWEm1aul9I2ToDIzHzA/pubhtml

Regards

Don't forget today is dividend day :)

Thanks for always being on top of this and having integrity to support the AE.

No problems.

Dividends will be a bit delayed because I need to figure out how to calculate the stakeholder distribution without the Nxtreporting.com site. It is currently not updating.

https://nxtforum.org/index.php?topic=85.msg81112#msg81112

I have just successfully paid out 205.32 USDbitfnx in dividend.

Message attached to the dividend payment:

If you have not received your payment, contact me please.

Next dividend payment will be in exactly 14 days!

Recap:

Asset ID:10294386916428132892

The USDbitfnx asset ran successfully for over 100 days and has achieved a compounded 9.15% interest in those 107 days and 833$ paid out and 52$ pending dividend.

Now we can calculate the average yearly return, that we can expect with this asset:   1.0915^(365/107) = 1.348 = 34,8% yearly interest!

https://i.imgur.com/p8dyz3I.png

Reminder: USDbitfnx is a USD backed asset, that has deposits on Bitfinex and uses that USD to participate in the swap market on that site. This currently yields 34.8% yearly with USDbitfnx's swapping strategy. The balance is always 100% and this was/is audited by Damelon.

There are two ways to get USDbitfnx:

- Send NXT or BTC to me, those will be sent to Bitfinex and exchanged for USD, you will get USDbitfnx tokens into your account.
- Buy them on the exchange.

(Both ways are also open for selling/redeeming the asset)

Why would you buy USDbitfnx?

- With USDbitfnx, you can speculate on falling BTC and NXT prices
- Gain more interest than on a bank account via dividends
- Trading gains (this asset was once sold for 17 NXT, now it is worth over 50 NXT, so much volatility)

Update: I have placed a sell order with the issuer account. Once someone buys USDbitfnx from that offer, the NXT will be immediately sold and transferred to Bitfinex.

Thread: https://nxtforum.org/assets-board/(ann)-(usdbitfnx)-the-first-dividend-paying-usd-asset-(~60-per-anno)/