Topic: [ANN][HZ][MMNXT] New HZ Asset: HZMMNXTT - page 2. (Read 2856 times)

I was late with the last two dividend reports, but no-one seems to care. So, here are the records for both of last week's dividend payments all in one shot:

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Last Friday, the MMNXT dividend was 254.14512695 NXT. Tx ID: 12570170546550801032 Since the exchange of MMNxt for HZMMNXTT was not complete, I sent out two of the three payments in HZ and the third in NFD.

For the HZMMNZTT holders, I valued the divided like so: since NXT last traded at 4866 back then, and HZ last traded at 72,  the total dividend in HZ terms was 4866 / 72 * 254.14512695 = 17'176.0 HZ. Per unit, it worked out to 17'176.0 / 25'000 = 0.688 HZ.

For the sole NFDMMNxt holder: I used NFD's last low ask of 3 and the same 4866 for NXT. The total dividend in Nxt terms was 4866 / 3 * 254.14512695 = 412'223.4 NFD. Per unit, it worked out to 412'223.4 / 25'000 = 16.49 NFD.

The two payments in HZ were:


And the final payment in NFD was:

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Between last Friday and last night, the final owner of the remaining 1150 NFDMMNxt exchanged for HZMMNXTT. So, the three payments last night were all in HZ. My luck changed a little, as the fat spreads of the prior week were whittled down by more competition. So, despite more turns, the spread-trading dividend dropped to 161.684 NXT. As always, you can see my trading record in the public ledger:

https://www.dropbox.com/s/4zv5jtakdqv39ul/HZMMNXTT%20Spread%20Trading%20Ledger.xlsx?dl=0

Since all three payments were made in HZ, I used the HZ formula solely. Nxt fell and NZ rose: the former's last trade at the time was 4753; the latter last traded at 83. So, last night's total dividend for HZMMNXTT was 4753 / 83 * 161.684 = 9'258.9 HZ. Per unit, it came in at 9'258.9 / 25'000 = 0.371 HZ.

Here's the record for all three payments:


As indicated by the formula above, the payments dropped in part because HZ is doing better and NXT is doing worse.

It's Sunday night, and I got lucky with the spread trading. Thanks to a couple of obliging dumpers and still-strong demand for MMNXT at just below 1.4 NXT, I completed two turns and managed to book a week's-end spread trading profit of 183.385 NXT. You'll see the turns in the public ledger, which you can view or download here:

https://www.dropbox.com/s/4zv5jtakdqv39ul/HZMMNXTT%20Spread%20Trading%20Ledger.xlsx?dl=0

As per usual going forward, I'm using Poloniex's last-trade value for both NXT and HZ. NXT has effectively stalled around 5000 satoshis; the last trade as of this writing is 4903. HZ has done a little better, last trading at 64. So, the total dividend for HZMMNXTT is 4903 / 64 * 183.385 = 14'985.7 HZ. Per unit, this works out to 14'985.7 / 25'000 = 0.600 HZ.

Since this reboot is still in pre-announcement page, the payments I'm making are to the three legacy holders from the days when HZMMNXTT was NFDMMNxt. Here are the amounts and Tx IDs of the two payments in HZ for the two holders who've exchanged the new for the old:

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The third and final holder still owns this Asset in NFDMMNxt form, so the final payment was in NFD. Except for an implied value for NFD of 3, its last ask before it was frozen, the formula is the same: 4903 / 3 * 183.385 = 299'712.3 NFD, or 299'712.3 / 25'000 = 11.99 NFD per unit.

Here's its amount, plus its Tx ID:

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The next report comes Friday, after I pass through MMNXT's own dividend.

MMNXT paid today - Tx ID 72915643579464144 - and I sent out the pass-through dividends to the three NFDer legacy owners of this Asset. Two of them exchanged their NFDMMNxt for HZMMNXTT; one of them has not as of now. So, two of the three payments were made in HZ and the third was made in NFD.

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Here's a generic copy of today's HZ pay messages:


And here are the amounts and Tx IDs of the two payments:

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Here's a generic copy of today's NFD pay message:


And here are the amounts and Tx ID of the third payment:

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The next report will come Sunday night Eastern time.

 

This Asset, my first to be issued on HZ's Asset Exchange, is a straightforward alias Asset at heart. 25'000 HZMMNXTT were issued and the minimum backing is 25'000 MMNXT held in HZMMNXTT's dedicated Nxt account The account always had, and always will have, enough MMNXT for the HZMMNXTT holder to redeem it, one for one, for MMNXT on demand.

But there's a Twist to this one! MMNXT is a Nxt Asset that runs a series of tradebots on the Nxt Asset Exchange. Ever since its bots started trading, it's paid a dividend once per week without fail. You can read up on it in its official thread on the Nxt Forum. As an alias Asset, HZMMNXTT will pass through all MMNXT dividends received by the backing account to HZMMNXTT holders. Dividends from this stream will be paid on the day MMNXT sends the dividend to the holding account, NHZ-HQTK-AH8J-WWU4-ASCUX. They will be paid in HZ at a rate determined by the ratio of NXT's last-trade price to HZ's at the time I send out the pass-through.

That's only one of the two revenue sources for HZMMNXTT dividends. In addition to the once-a-week pass-throughs, I'm going to be paying a second dividend per week from another revenue source: spread-trading MMNXT itself on the Nxt AE.

To facilitate this, I sent 5000 of my own Nxt to the HZMNXTT_Dedicated_Account that I'm using for the spread trading. This Nxt is my own: in essence, I'm "leasing" it to the HZMMNXTT Asset. Any profits I make on the spread trading, net of all fees, will be summed up each Sunday night and sent out to all HZMMNXTT holders as a second weekly dividend. Like the pass-through dividend, these will be paid out in HZ at the prevailing ratio between Nxt's price and HZ's.

So if the week's spread trading works out, HZMMNXTT holders will get two dividends a week!

To keep track of the profits and any losses, I've set up a spread-trading ledger that you can view on the Web. Each transaction is numbered and linked to MyNxt's block explorer. You can audit my ledger at any time by going through the Transactions of the HZMNXTT_Dedicated_Account and the trades of MMNXT as shown on MMNXT's Asset Explorer page at MyNxt.info. Just look for the trades that Nxt Account NXT-QQKJ-SWLJ-CPX4-3QXXW has been involved in, and you can audit every entry in my public ledger. The rightmost column is the Running Total of accumulated Profits or Losses, which I'll zero out on Sunday night when I send out the spread-trading dividend (if any.)

As you'll see when you inspect the second and third sheet of the ledger, the spread-trading does work out for most weeks.

If I get unlucky and the week's take is a net Loss, I'll omit that week's second dividend and use further Profits to whittle down the accumulated Loss until it zeroes out. The pass-through dividend from MMNXT will be paid every week in full regardless of how my spread-trading works out. This is exactly what I've done since the start of the old NFDMMNxt Asset.

Also, when a change in feature calls for a reboot, I'll eat any accumulated losses as part of setting the dedicated Nxt account back to 25'000 MMNXT & 5'000 NXT trading capital. Back when I ran the old NFDMMNxt Asset, and was preparing to transfer it over to HZ, I ate the accumulated loss in order to start HZMMNXTT fresh. I did so a second time to reboot it for the unveiling of the live HZ-AE tradebot that keeps HZMMNXTT's price in line with the underlying bid-ask of MMNXT itself.

Every holder of NFDMMNxt got, at a minimum, the full value of the MMNXT dividend in NFD each week. The same thing goes for HZMMNXTT's holders, as you'll see in my subsequent posts on this thread. In most weeks, each holder of both got a second dividend from the spread-trading profits. For NFDMMNxt, the payments are recorded in the third spreadsheet of the the public-ledger Excel book: it's labeled "NFDMMNXT Archive".  HZMMNXTT's second payments are recorded in the second sheet, labeled "Past Weeks Archived."

As a holder of HZMMNXTT, you're guaranteed to get the HZ value of MMNXT's own dividends no matter what. My earlier track record on NFD's Asset Exchange, and my current one on HZ's, backs up this promise. The Sunday spread-trading dividend is an add-on. If I prove to be a hapless spread-trader, as I did just before the wind-down of NFDMMNxt, I'll just burn through my own stash. I will never touch the 25'000 MMNXT that backs this Asset. I'll only Transfer them out to fulfill a redemption request.

Each week, I'll post a payment report on this thread. The spread-trading dividend, if any, will be accompanied by a brief commentary about the MMNXT market in the Nxt Asset Exchange. The format of the subsequent reports will be the same as the ones I've already posted.

The market-making tradebot is live! Instead of all-at once, I'll be selling HZMMNXTT in traches. The bot will adjust the offer price to square with MMNXT's own bid/ask and the NXT/HZ ratio. This process will be automatic every hour on the hour. The bot is also programmed to place a buyback order for every unit of HZMMNXTT that's not in my Issuer Account. With this feature, any holder can get out of his HZMMNXTT with only a little slippage. In order to get rid of those Trade-History-polluting cross-trades between myself and myself, the new orders are placed on block after the cancels of the previous orders. If you don't see the buyback order, please be patient and wait for the current block to confirm. You'll see it then, along with the new sell order. In most cases, you'll only have to wait a few minutes.

As I said, this bot runs every hour on the hour, at the top of each hour. I'll only stop it - temporarily - if my desktop gets hung and I have to reboot. If I do, the bot will only miss one cancel-and-replace cycle; the current orders will remain on the books for two hours instead of one. With normal market conditions, this won't be a big deal.

With the explanation and terms out of the way, here's the summary sheet for HZMMNXTT:

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HZMMNXTT ASSET DETAILS:

NAME: HZMMNXTT
HZ ASSET ID NUMBER: 9588580913946030800
ISSUING ACCOUNT: NHZ-HQTK-AH8J-WWU4-ASCUX. Balance inspectable at the HZ Block Explorer.
NUMBER OF UNITS: 25'000
BACKING: Dedicated Nxt account NXT-QQKJ-SWLJ-CPX4-3QXXW. Holdings of MMNNXT are shown by clicking the "Assets" tab near the bottom of the block explorer page.
BENEFIT: Each unit of HZMMNXTT is redeemable on demand for one unit of MMNXT from the backing account, sent to the redeemer's choice of Nxt account. In addition, each holder of HZMMNXTT will receive dividends paid in HZ from two sources: MMNXT's own weekly dividends, passed through to every holder of this Asset, and any profits made by spread-trading MMNXT on the Nxt Asset Exchange. The pass-through dividend will be paid within a day of its receipt into the backing account. The spread-trading dividend, if any, will be paid out each Sunday night Eastern time. If the week's trading results in a net loss, the loss will be carried forward and the dividend passed until the trading account shows a profit again.
PRICE: Will vary according to market conditions, as implemented by a live tradebot on Horizon's Asset Exchange.

If you want me to prove I have control of the Asset Issuer account NHZ-HQTK-AH8J-WWU4-ASCUX: just send me your own HZ Account ID and I'll send you an Arbitrary Message that'll prove it's my account. If you don't have an HZ Account, just download a new wallet from this page. Please look at all three options to see which one is right for you.

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Feel free to ask any questions you have, and thanks for reading. And to all the NFDers who bought the good ol' NFDMMNxt, thanks a lot for taking the ride with me!