NuLagoon: Innovative Nubits Liquidity Group Pools

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FAQ:

• What is the NuLagoon?

The Nu Lagoon consists of a set of innovative Nubits liquidity pools. They provide liquidity to support Nubits pegging at $1 and get compensation from Nu Shareholders. NuLagoon runs in a way similar to an open-end fund runs. Investors can deposit into and withdraw from the pool every accounting day (Monday and Thursday).

• Why to invest?

By investing into the Nu Lagoon, you are providing liquidity support for Nubits, which is crucial for Nu. In addition, your fund will be expected to have very considerable compensation. Pool A: 7.2% monthly expected return; Pool C: 20% annual expected return immune to BTC volatility; Pool D: 13% monthly expected return. The actual return could be less or more than expected because of the volatility of BTC price against USD(not Pool C) and other factors.

• How to invest?

Extremely easy. Choose one your favorite pool, send the money you would like to invest to the pool’s Deposit Addresses listed above (minimum is 4 BTC or 1000 NBT). Send 0.0001 BTC or 0.01 NBT to the same address to withdraw funds. Don't send fund from address which is not fully controlled by you, for example, your exchange account.

• If I invest BTC, how much BTCs I can get back?

The US Dollar is the base currency in NuLagoon accounting. That means a 10 BTC deposit will be treated as a 2500 USD deposit (if the BTC price is 250 USD at the time of deposit). Assuming NAV grows 20% one year later, the investment grows to 3000 USD. The number of BTCs you will get back depends on the USD price at the time of withdrawal. If the BTC price is 300, you get 10 BTC, if the price is 200, you get 15 BTC.

• How does Pool C and Pool D work?

The pool C’s investors lend their fund to the pool D’s investors, and will receive a fixed amount of interest no matter how the BTC price moves in the period. The pool D investors pay the pool C’s interests, be paid with all the custodian fee earned(exclude manage fee), and receive the remaining profit or loss generated by the overall fund of pool C and pool D. The pool C’s interest rate will be adjusted base on the fund sizes of Pool C and Pool D every accounting period.

• Is NuLagoon a Ponzi?

NuLagoon is not a Ponzi, because: 1) The interests NuLagoon earned and paid to pool participants DO NOT rely on fund deposit by new participants. 2) NuLagoon always can provide full-size fund withdraw, even if all the participants decide to withdraw their fund at the same time.

• What could be the case involving a loss?

To give a very rough estimation, if about half of the fund in the pool is stay on BTC.

For Pool A, the custodian fee earned for a week is about 1.68%. So if BTC price drop over 3.36% in a week, there will be a loss for pool C.

For Pool C, NAV will never decrease, if no default event occurs.

For Pool D, the size of Pool D is about 2 times of the size of Pool C. the custodian fee pool C and D earned for a week is about 1.68%. If BTC price drop over 3% in a week, there will be a loss for pool D.

• What else I should know?

It is useful to check the official thread on Nubits forum: Pool A, Pool C & D. And, please carefully read Terms of Pool A, Terms of Pool C & D. Investing in the pools means you fully understand and agree with the terms of the pools.

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