Market Making Proposal from GSR
Jawesome I know GSR have with us, I'm talking about the CEXs they intend to make a market on. To what extent does our agreement cover their activities? What enforcement action are we in a position to take in the event of a breach?
Im confused as to why we would want to onboard people into unstaked ohm? We dont want to burn anyone and by having people buying unstaked ohm isnt that what we'd be doing?
I guess thats for MM to figure out but feels like its something we should talk about
Diluting normies is a bad look so would want to avoid that at all costs
EconomistBeard Believe it or not a DAO is a decentralized entity which does have legal rights.
Jawesome So how does a Coinbase grandmother who buys $150 worth stake? I'm sure the DAO has worked all this out but it doesn't make sense based just on the proposal. How do you market make naked OHM if the CEX sells it as wrapped or gOHM? Trust the DAO but a little more background would be nice. thx
Because it's a contract and they are a legal entity. If that's not enough, they also have a name and reputation to protect.
Winnal In some jurisdictions, meaning the full scope of appeal and enforcement is limited.
CEX engineering teams can and likely will develop custodial staking solutions that we would not be involved in.
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The reserve currency of Defi needs to play with regulated spaces. Bridging the gap of Tradfi to Defi to allow Olympus and OHM as a concept to reach as many people/institutions is an important step. We want to be ubiquitous and tbh we have really matured as a protocol over the past 8 months. It is a natural next step to create other markets in Tradfi for OHM, the reserve currency of Defi.
The AMA will provide more clarity of the intentions of GSR and whether they are under the ethos of our community. If they are a friendly market-maker, it is time to move forward with a chosen party.
Terms to reflect on:
Is the goal to include or exclude people from discovering OHM? Defi is a small place, market makers will help give exposure to many outside the glorious defi.
gOHM = governance. Please keep this naked OHM and let retail/institutions come over to Defi and (3,3). No need to give anyone governance power who is outside the castle right now.
Define the terms for the community before the swap: avoid dilution, avoid handing over governance power, what are normal terms for dealing with a MM and are these market terms?
Questions for GSR: Any forecasts on possible volume for OHM on CEXs? Who are your customers and do you see retail or institutions controlling the volume? Do you give the opportunity to include marketing material and other resources to be plugged in when you offer OHM? Is there anyway GSR can promote OHM over other MMs?
Interested to see where this goes…A great quote in the discord from @BarrelAged
"Right now, holding OHM is like holding paper money of a hyper-inflating currency (which is essentially what OHM is right now)." Let them hold it…staking will form around it, which we can dictate or help CEX dictate and bring people into the family frens….
Wartull As someone who regularly deals with contracts as part of my day-to-day work, that's not the most reassuring response I've ever heard.
EconomistBeard Then make sure it's done in the proper jurisdiction.
What are the chances the agreement can be posted for the community to review prior to commencement of voting?
Wartull Agree, would just like a little more clarity on process so we don't end up with a ClusterF#%k. I know some of the larger exchanges have custodial staking arrangements. Just seems a little shifty to say "no, we won't stake in order to not dilute you" and then turn around and have a native staking via the CEX. That said, I am for the agreement, but with a little more process on what will go on behind the curtain. I think it is time for CEX. Just hope Light and Alameda don't pummel over leveraged Ohmies.