Market Making Proposal from GSR

Gustl

How can I vote "yes" twice on this ?

pclipse

Centralized exchanges and Olympus combo scare me.

Coud

If there is an arb on the cex vs dex price, then there will be volume driven through our sushiswap pool anyway
plus the deepest liquidity will be on the dex which should entice big volume to stay on chain

pclipse

Coud Ah okay, that makes sense

gsr_nyc

Coud yes that is the idea, a centralized listing should net increase volume and hopefully yield more rewards

halyax GSR was formed in 2013, before ethereum or tether, we like to think we’re pretty much crypto OG at this point

Wartull yes exactly, the idea is that the loan would not be staked and dilute rewards for current Ohmies

Sia_Brt

Wartull quick question - could you please explain in more detail what exactly made the “the best fit” compared to others and in their own right?

Wartull

Sia_Brt

Without going too much into the details they really understood the market we were in and what we want to achieve. So we made it very clear we value our dex volume a lot and are not looking to move to a cex completley, but have it as a complimentary option next to it. Also that we are not looking for a spray and pray approach but quality over quantity. The fact they were open to post it like this on the forum + doing an AMA with the community is I think also unseen in DeFi.

Harry

Yes plz 😃

qwercus

is this an interest-free loan?

halyax

qwercus my question exactly! In the straight repayment option they keep 100% of the yield - an incredibly high fee for "market making" - pairing our Ohm with their dollars and charging CEXs to trade it.

Check out the GSR team: https://www.gsr.io/our-team/

Goldman Sachs and other IB alums. Completely the opposite of the kind of people we want to associate with imo.

EconomistBeard

Are we really that keen to get OHM listed on a CEX that we are already sourcing market making partners?

casuwu

EconomistBeard They are greating a great deal and we have every single card in the house.

EconomistBeard

halyax Have we even contemplated how governance might get poisoned if CEXs start listing OHM? The idea of Binance sitting on a stack of OHM for their apes to trade in an out of while they have it staked in the background does not sit well with me.

Wartull

halyax No yield since it will be in OHM, not sOHM

CRFJeff

halyax

I agree! reading their CV's, all from the Wall Street Club. Be Afraid, without knowing any of them on a personally or business level

Wartull

EconomistBeard
On this point, they'll hold OHM, not gOHM so no governance influence.

halyax

EconomistBeard Strongly agree. Early on I remember asking "wen CEX" and people kept saying "not important, just wait and let them buy Ohm like anyone else. Not worth paying a huge premium" Ofc they were right and I was greedy. This proposal is exactly what they were warning against!

Wallace900402

and why not gOHM? so that these OHMs are always staked?

Wartull

Wallace900402 That would dilute ohmies, we wouldn't want that

88HeavenSent

EconomistBeard

Wartull The market maker will, CEXs where they will provide liquidity might have other ideas.

Winnal

Wartull I think this is super important, could be considered as a fee or interest on the loan in as far as the unstaked balance will increase the APY for the rest of us staking, so taking out a chunk of staked supply for market making makes sense.

chuckbass

not a fan - we don't need any MM's on CEXes today. If GSR wants to arb the volatility then they should market buy and put onto CEXes

Wartull

EconomistBeard that can all be agreed upfront

jellyfish

Do we vote with thumbs-up and thumbs-down?

Just asking because I don't see the usual YES-NO buttons.

Wartull

jellyfish thumbs for now yes

Mongo

Smooth brain here. Proposal says the OHM will not be staked and I assume the CEX would offer naked OHM and not gOHM or wsOHM. Is that a correct reading? If so, what is the mechanism for a CEX customer to stake? Say Coinbase Boomer buys OHM and then what? Do we plan to offer CEX custodial staking? Please explain it to me like I am younger than Zeus.

EconomistBeard

Mongo Staking is permissionless, nothing would stop a CEX from staking OHM and showing naked OHM on their front-end.

Z33

will the 25000 OHM loan be returned as 25000 OHM or the $ value of the loan will be returned. Given that almost surely unstaked OHM will be diluted in a year, I hope the loan terms involve returning the actual dollar value.