[Ripple Dividend] Launching Dividend-Paying-IOUs

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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby ripplerm » Tue Oct 07, 2014 8:25 am

On Vacation 13 ~ 21, October, 2014.
Just to inform that I'll be on vacation during the above period.

Market-making bots will keep running on my computer,
but if anything happen (e.g. power failure) there will be nobody to restart the bots.
The 1:1 quotes for buyback mechanism might be affected too.

Dividends will be accumulated and payments will be triggered after vacation.
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby ripplerm » Fri Oct 10, 2014 9:03 am

FYI,

we had decided to temporarily remove BTC.Justcoin from the portfolio of our BTC Fund.
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby ripplerm » Mon Oct 27, 2014 9:28 am

New Fund Launching — FBM.
[ original post:http://www.rippledividend.com/new-fund-launching-fbm/ ]

FBM is the symbol of our new fund, which will be making markets between Bitcoin-IOUs and Fiat-IOUs.

General Policy regarding FBM:

  • Pegged currency: USD.SnapSwap.
  • Minimum holding for dividend entitlement: 1 FBM.
  • Basic Strategy: Making market between fiat-IOUs and Bitcoin-IOUs.
  • Trading assets: BTC.Bitstamp, BTC.SnapSwap, USD.Bitstamp, USD.Snapswap, CNY.RippleChina, CNY.RippleCN, CNY.RippleFox, JPY.RippleTradeJapan.

Initial Sale
There are 10,000 units of FBM offered for sale at following prices:

  • 2000 FBM @ 1.002 USD.SnapSwap
  • 2000 FBM @ 1.004 USD.SnapSwap
  • 2000 FBM @ 1.006 USD.SnapSwap
  • 2000 FBM @ 1.008 USD.SnapSwap
  • 2000 FBM @ 1.010 USD.SnapSwap.
For the convenience of those who don’t hold USD, there are quotes selling the units for BTC,CNY, or JPY, but at less attractive prices.

  • 1000 FBM @ 0.00286 BTC.Bitstamp
  • 1000 FBM @ 0.00286 BTC.btc2ripple
  • 1000 FBM @ 6.10 CNY.RippleChina
  • 1000 FBM @ 6.10 CNY.RippleCN
  • 1000 FBM @ 6.10 CNY.RippleFox
  • 1000 FBM @ 112 JPY.RippleTradeJapan

The Initial Sale Period will end on 31st-October, or when the 10000 offered units are fully consumed, whichever come first. After the Initial Sale, prices of new units will be set at a level not lower than 1.01 USD.SnapSwap (i.e. no less than 1% premium).

The first Dividend Entitlement of FBM is set at ledger_index 9700000, which is expected to occur somewhere around 1st-Nov-2014.

Risk Reminder
Due to the volatility of exchange-rates between BTC and Fiats, the NAV and return rate of the FBM is expected to be highly volatile.

FBM is pegged to USD.SnapSwap, which means its NAVs will be evaluated against USD.Snapswap to determine its profit and dividend rates. Should the NAV-per-unit of FBM fall below 1USD.SnapSwap, payment of dividends might be halted until the fund regain its value.

Also, the 1:1 buy-back support could be temporarily halted if the hotwallet was exhausted (our policy is to leave only 5% – 10% of the Fund’s asset in hotwallet), then the price of FBM will be determined by free market. The Hotwallet will only be recharged when the NAV-per-unit of FBM stand above 1USD.SnapSwap.

Invest only if you understand and accept the risk.
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby yvv » Mon Oct 27, 2014 2:49 pm

What is issuing address for FBM?
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby ripplerm » Thu Oct 30, 2014 5:16 am

yvv wrote:What is issuing address for FBM?

Same as Others: rDVdJ62foD1sn7ZpxtXyptdkBSyhsQGviT
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Postby ripplerm » Thu Oct 30, 2014 5:20 am

Operational Accounts and Reserve Policy Updates
http://www.rippledividend.com/operational-accounts-and-reserve-policy-updates/

Here’s some updates regarding accounts allocation and reserve-policy for our Funds. It involves only some technical/operational issue and have no impact on our trading strategy or dividend policy.

Dividend Payment Accounts.
From November onwards, we will allocate for each Fund a separated account for the dividend-distribution purpose.

  • FMM: rDiF2SV4YR61qDaGNiGnA6ZKMQpxgg1HWt
  • FBM: rDiFnkZGuh1fUE5L7Enn5izv8rE5L1WPMh
  • BTC: rDibzy8eMpBVZLZyn6XrwYKvP5dwZyayFS
  • CNY: rDicHqREJ5bvevA9LTU3gqV3jpW9Qx11iv
  • USD: rDiui2wxBqjmeWpSUfuDYYJzjgPAF8q11i

This might help some holders to identify dividends paid by individual Funds.

Risk Reserve Accounts.

As described in earlier post, ~10% of our market-making profit will be retained as special reserve/provision for trading-risk and gateway-default-risk. To-date, the accumulated amount were still low and we did not explicitly separate the Reserve portion from the trading assets (in Hotwallets and Trading-accounts).

For better transparency and ease of maintenance, we had decided to allocate for each of our Funds a dedicated account for holding the Reserves, separating it from other trading assets.

  • FMM: rDVmRfioWMZB2bdoEatrgyGAnn573fQ9FA
  • FBM: rDVRNvFkZQ5L3hZfk3gBnXudENFDkgGTm2
  • BTC: rDVtU69hcLPjYsR1eJXnGSR8Mf6HHHfENj
  • CNY: rDVYWLMhTP6rjL93LsTGZXCyM5vwZrPK9F
  • USD: rDVS7D6Fte8BUNmEyEKo9GBEgg5EZa6RUJ

Reserves Policy Updates
Our original plan was to accumulate some ~3% reserves for each Funds to serve as trading buffer. However, during the past three months of managing the fiats-only Funds, we had found that NAVs of these funds are quite stable due to the less volatile exchange-rates between fiats.

Hence we are in opinion that a ~0.2% buffer would be quite sufficient for dealing with daily fluctuations. Any accumulated amount beyond this level will then be converted into XRP and being sent to the Reserve-accounts. These amount are non-distributable, only serve as provision against gateway-default risk and/or other solvency risk.

For the newly launched Fiats-Bitcoin fund (FBM), we had temporarily set for it a higher trading-risk buffer at ~1% level, which would be reviewed later.

Effective Date
The accounts mentioned above will start playing their role effective from 1st-Nov-2014.
The new addresses had been updated on our Ripple page.
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby ripplerm » Wed Nov 05, 2014 10:41 am

Report, October-2014

http://www.rippledividend.com/report-october-2014/

There were 28 dividends being paid out from each of our funds during the month, for record-ledgers 9140000~9680000.

Summary:
Total dividend received per unit of IOU held, and the approximate return rates.
return rates oct - Copy.png

* Assumption: converting each xrp-dividend into pegged-currency at the time of receipt, according to daily-average market prices.
^ Annualised rate = (1 + monthly return)^12 – 1.
Disclaimer: Past performance is not indicative of future results.



The sizes of Funds at the end of month (as of ledger 9680000).
holders oct - Copy.png



Comment:
The funds had been growing fast during October. The size of our BTC fund grew more than 50%, while the others had been more than doubled.

Performance of FMM and USD were much higher than expected, due to some abnormal market activities during early weeks of the month. A gap between USD.Bitstamp and USD.Snapswap had been widen up and keep fluctuating, which caused wider spread between some currencies-pairs, and induced more arbitraging volumes. These high return-rates are not expected to be sustainable.

Performance of CNY fund was slightly lower than previous month, mainly due to the dramatic growth in its size, and the gradually tightening spread between CNYs by different gateways.

Portfolio and Strategy:
Immediate after the hacking incident on Justcoin, we had stop trading its IOU, and cleared all the BTC.Justcoin in our fund. Following the collapse of the gateway, our BTC-fund is now making markets only between Bitstamp, btc2ripple, and The Rock Trading.

The portfolio and trading strategy for other funds remain unchanged.

A new fund named FBM was launched in late October. The fund will be focusing on market-makings between Fiats-IOUs and BTC-IOUs, which assuming higher risk while pursuing higher return.

Dividend Payment:
During the month, we had strengthen the smoothing-factor in our distribution algorithm, resulting smaller volatility on dividend rates.

We are currently working towards automation which targets to to trigger dividend payments in higher frequency.
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Last edited by ripplerm on Wed Nov 05, 2014 1:39 pm, edited 1 time in total.
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby tulo » Wed Nov 05, 2014 10:57 am

:+1:

Sweet dividends.
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby ripplerm » Thu Nov 06, 2014 5:53 pm

Memos in Dividends
http://www.rippledividend.com/memos-in-dividends/

Since the launch of Ripple Dividend, we had been attaching each dividend payment with a Memo that provides some detail information regarding the transaction.

The content of our memos keep evolving as we were adding/removing/renaming some fields in it. Hence we think there’s a need to make a simple documentation here for our holders to understand the meaning of our memo content.


Retrieving Memo
For non-coders, here’s a simple tool for retrieving Memos Object from transaction record:
http://ripplerm.github.io/RippleDividend/memo.html


Content
Each of our Memo object contain two fields: MemoType, and MemoData.

MemoType is always “Ripple Dividend”, and MemoData is a json string that contain the information regarding dividend and fund.

The following is a sample MemoData retrieved from one of our dividend payments lately:

Code: Select all
MemoData: {
"payment_type": "dividend",
"fund": "FMM",
"issuer": "rDVdJ62foD1sn7ZpxtXyptdkBSyhsQGviT",
"issuer_name": "Ripple Dividend",
"issuer_domain": "rippledividend.com",
"record_ledger": 9780000,
"record_ledger_timestamp": "2014-Nov-06 08:38:10",
"unit_in_circulation": 59913.756912522316,
"minimum_holding": 1,
"dividend_total": 1327.9282784726045,
"dividend_rate": 0.02216399616554608,
"nominal_rate": 0.0006451201070505425,
"nominal_currency": "CNY",
"exchange_rate": 34.35638716467664,
"smooth_factor": 0.9,
"holder_balance": "881.383",
"holder_dividend": "19.5350"
}

Some fields are self-explanatory, others are explained below.

  • fund:
    Three-letters currency-code of the fund.
    This field was named “asset” or “currency” in older version of our memos.

  • record_ledger:
    The sequence number (aka ledger_index) of the ledger that’s being used for determining the list of entitled holders.

  • unit_in_circulation:
    which is = (total units issued by issuer address) – (units retained in hot-wallet).

  • minimum_holding:
    The minimum amount of holding required to be entitled for a dividend payment. Those who are holding less than this amount of fund’s unit will not get paid.

  • dividend_total:
    Total amount of XRP being distributed to all holders in this record_ledger.

  • dividend_rate:
    Amount of XRP dividend per unit of fund.

  • nominal_rate:
    The equivalent dividend rate, denoted in the fund’s pegged-iou.
    This figure is only an approximation.

  • nominal_currency:
    The pegged-currency of the fund.

  • exchange_rate:
    The 24hr-average market rates between the pegged-iou and XRP.
    We get data from ripplecharts.com, at the time of dividend calculation.

  • smooth_factor:
    A factor used for dividend smoothing calculation. It represent the (1 – a) value in the exponential moving average fomula:

  • holder_balance:
    Number of fund unit held by the recipient, according to the record_ledger.


  • holder_dividend:
    Amount of XRP being sent to the recipient.
Relationship between some figures:

dividend_rate = dividend_total / unit_in_circulation;
holder_dividend = holder_balance * dividend_rate;
nominal_rate = dividend_rate / exchange_rate;


Others:
Our dividend entitlements are set at an interval of 20k ledger, which is about 25~30hr apart. Hence the value of nominal_rate could be treated as a rough approximation for daily return rate.

The Memo’s content and field name might change from time to time. The values provided in the memos are only for reference, we make no guarantee for its accuracy.
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Re: [Ripple Dividend] Launching Dividend-Paying-IOUs

Postby ripplerm » Sat Nov 08, 2014 10:33 am

Memo Version
http://www.rippledividend.com/memo-version/

To make it easier for people to keep track with changes of our Memos’ format, a “memo_version” field was added into MemoData starting from dividends for record_ledger 9,800,000.

An example MemoData of version “dv.1.0″:

Code: Select all
MemoData: {
  "memo_version": "dv.1.0",
  "payment_type": "dividend",
  "fund": "USD",
  "issuer": "rDVdJ62foD1sn7ZpxtXyptdkBSyhsQGviT",
  "issuer_name": "Ripple Dividend",
  "issuer_domain": "rippledividend.com",
  "fund_hotwallet": "rDV1q4Urtve3kGZHLaoDt3XVZns6C6DDG5",
  "record_ledger": 9800000,
  "record_ledger_timestamp": "2014-Nov-07 10:07:50",
  "unit_in_circulation": 4996.936935804567,
  "minimum_holding": 1,
  "dividend_total": 1314.0498067672695,
  "dividend_rate": 0.2629710608016092,
  "nominal_rate": 0.0013183648268560216,
  "nominal_currency": "USD",
  "exchange_rate": 199.4675945874034,
  "smooth_factor": 0.9,
  "holder_balance": 1,
  "holder_dividend": 0.2629710608016092
}


The following fields are recorded as Number : (some of them were String in older memos.)
  • record_ledger
  • unit_in_circulation
  • minimum_holding
  • dividend_total
  • dividend_rate
  • nominal_rate
  • exchange_rate
  • smooth_factor
  • holder_balance
  • holder_dividend

The remaining fields are all Strings.

There are two new fields, namely “fund_hotwallet” and “memo_version”, which are self-explanatory. Others are as explained in our previous post.
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