This proposal outlines an agreement for market making services, to be provided by GSR Markets Limited(“GSR”), for the OHM token. The purpose of this proposal is to seek approval for a loan of 25,000 OHM tokens that would be used by GSR to provide liquidity for OHM tokens listed on GSR supported exchange(s).
GSR was founded in 2013, and has since built a proprietary trading system, often trading over $5bn a day across the cryptocurrency ecosystem. GSR’s trading platform is connected to over 60 cryptocurrency exchanges and is integrated with major DEX’s and lending protocols. GSR employs close to 200 people, predominantly engineers and traders, and has collected eight years of market data that it has used to continuously develop and refine its trading engines and programmatic execution capabilities.
GSR believes that DeFi will grow to become larger than the CEX markets. As a prominent actor in this ecosystem, GSR has focused its considerable expertise ingrowing our capabilities in this area:
GSR has provided at times over US$1bn of liquidity a day to DeFi markets. By the end of 2021, GSR expects to have invested in excess of US$50 million in DeFi protocols, with significant additional investments projected for 2022 (US$1bn in TVL across a wide range of protocols, platforms and projects).
GSR + Olympus DAO**
GSR has been following the speed of growth seen by Olympus DAO and the vibrancy of its community. GSR has been in conversations with some of the pioneers of the Olympus movement over the past months and we have concluded that GSR could help the community in establishing proper OHM liquidity across centralized exchanges (many of which require a market maker).
OHM has leveraged protocol-owned liquidity for the interest of the protocol, and set a strong example, now followed by more protocols and applications looking to better deploy their capital. With that in mind, it remains important to continue to grow the Olympus community through exposure to new venues and participants. Centralized listings reach a broader audience and lead to further adoption by retail and institutional investors looking for a frictionless trading environment. Market makers can act as buyers and sellers of last resort reducing slippage and stepping up in periods of stress and increased volatility and contributing towards price discovery.
Centralized listings are the logical next step to further adoption and reach of the decentralized reserve currency that is OHM.
In our experience, the existence of well functioning centralized and decentralized liquidity venues will act as a strong catalyst for trading volumes and should increase the transaction rewards for the community from the Sushiswap pools.
To approve GSR as an official market making partner of OHM, and to authorize the transfer of 25,000 OHM from the community treasury to GSR for market-making purposes in the form of a loan.
GSR agrees to either return the full 25,000 OHM loan amount to the community treasury at the end of the 12 month contract period OR exercise one or both of the two repayment options, allowing GSR to purchase the OHM token amounts specified below on the respective option expiry dates.
12,500 OHM 6 months from market making inception date at a market value of $15,625,000.
12,500 OHM 12 months from market-making inception date at a market value of $18,750,000
Should GSR choose to exercise one or both of their OHM options, the loan balance will be returned to our treasury in the form of either ETH or DAI.
GSR commits to:
Provide liquidity for any listing on supported centralized exchanges, using commercially reasonable efforts.
GSR will use the loan solely to provide liquidity to OHM markets, it will not be staked and will not dilute the current yields.