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 want to confirm that this account is an alt-account of a senior member of the BTT and NXT community.
He contacted me on PM and confirmed his identity in Skype.
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?
(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.
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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.
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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!
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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.
