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  • Market Making Proposal from Wintermute

dr00

Puttting gOHM in CEXs is dangerous for the price of $OHM. CEX users are noobs who do not do real defi because they are lazy or because they are whales and need liquidity in 100's of millions of dollars. My fear, although completely speculative, is that when the CEX users will see a gohm price of 50K or 75K they will freak out and dump tokens. It is much better to list OHM at FTX, Coinbase and Binance and give them an API so the users can stake the OHM token. Put the onus on them to stake. About 25-50% of CEX user will never stake the OHM token because they are noobs or uncomfortable with the whole concept. Which will reduce dilution and it will reduce volatility. Tokens priced at 50K (like $BTC) tend to have a very high volatility--not just because they are nascent.

Nascency is also an issue and I feel we should do this after the 1 or 2 year anniversary of OHM or once we reach 100% APY. Too soon IMO.

    Thinking about RFP's as i deal with alot of that as part of my work, we'd need to break down what is most important to OHM holders and have a weighed decision making process like Derek is saying. And probably include 3-4 proposals for the final round, then 1 more round with the last 2. That's how it works in my field below is an example of how a weighted decision could look like

    Example: MM Weighted Decision making Template

    Reputation: 60%

    Volume: 15%

    Terms:25%

    MM X, MM Y, MM Z

      CtrlAltElite Agree. Similar experience in my line of work too. Mainly on the responding side, but I've been a buyer before and set the ground rules. For us, it's Management, Technical, Schedule, Cost, and Terms being the three biggest scoring sections, with subsections between depending on what technicals are important to the engineering team. Technical and Cost are usually the biggest swingers at ~40% with cost/schedule/terms making up the delta. Since it's mainly Government contracts, the terms issue is low because the construct everyone operates in is similar and non-distinguishing so it usually is a pass/fail if there's unreasonable exceptions.

      Establishing a select committee to develop the RFP and make that a community vote arguably makes more sense than soliciting unstructured offers that don't conform to what the DAO wants, because the DAO doesn't know what it wants, because there is no RFP.

        1. Wintermute borrows from us interest-free, this is a great avenue for shorting
        2. The call of $69,420 is there to cap our growth, from which they can take profit into DAI/ETH
        3. As far as market-maker go, Olympus DAO already have 9-figs of protocol owned liquidity
        4. The mention of DyDx is a tell, because it's used to naked short
        5. Show me the incentives and I will show you the outcome
        6. Given the above, I find the CEX market historically -EV for onchain protocols

        OHMies, let me ask you this: what's stopping market makers from having actual skin in the game and market buying like the rest of us?

          Forgot to add: how can they call it a partnership when they borrow our DAO interest-free?

          A REAL PARTNERSHIP is a DAO-swap

          For example: FRAX Finance and Olympus DAO swapped FXS for OHM, ensuring that both protocols have skin in the game and not just lip service

          OHMies: market exposure is double-speak, DAO swaps are not… #skininthegame

          BTW this is Tetranode, the Olympus Treasury Advisor

          Ask me how I know a thing or two about being a market maker…

            I heard GSR and Wintermute said at the end of the call that a 'Both' option wouldn't work. Needs to be either or neither but not both.

            That's a tell, they're trying to move the price as they please, and they don't want another trading desk to upset their operation.

            IDKFAIRL given the current APY, there is little point for MMs to use their OHM for anything but staking if they bought OHM themselves (we know cause we did)

                wishful_cynic

                Suppose that you gave me staked OHM for free, it is possible for me as market maker to short the position without ever directly selling it…

                I know the tools of the trade well, and I implore OHMies to think long and hard about this proposal before we give our DAO away for free

                    in my opinion:

                    wrapped centrifuge and wrapped luna is not seen on Coinbase by retail investors.

                    those small letters in front of a project hurts the buying power. I know this is just optics and sounds ridiculous - I believe though that asking anyone to buy gOHM or sOHM on centralized exchanges instead of OHM is my real issue here. I know the power of the word OHM - I have studied it now for 20 years straight and we saw what kind of a project this is and how much attention and success this had - please consider me being a very experienced meditator by telling all of you - whatever the utility will be and however the rebase model is structured - I care for you all keeping a clean OHM token that can be bought on exchanges! I've been thinking exchanges should be incentivized to buy Ohm simply because the price goes up and it's a sought after project. Most retailers don't care about utility nor staking - once they dive deeper in the projects they are actually holding on exchanges then they can move it off and stake it. Ankr and Curve is also held by all exchanges - why would they not do OHM? Could someone share why OHM has really not been listed much? Is the team uncooperative? Is it because the treasury holds liquidity? Is it because the exchanges couldn't interfere as much as they would like?

                    I also do think they would at some point misuse governance - we are talking people like CZ, CEO of Binance and other people like that.

                    IDKFAIRL I'm fairly sure that whatever I'll say is not going to convince you that MMs are not "snakes", and thta's fine - one cannot convince every die-hard "on the internet". But I can try to explain my arguments to others, who might take your comments too seriously.

                    If we borrow gOHM, shorting it would give us upside in case market cap of olympus goes down, but would expose us to (potentially infinite if gOHM lists way above $69,420) downside if it goes up. This is an assymetric bet I personally think is rather dangerous to take, but sure if we were bearish we could do it. You are right that a loan in OHM is more straightforward as it can be trading at 2 dollars in 6 months time, although a better opportunity would still be staking it and selling the proceeds. That being said you main assumption is that both Wintermute and GSR are bad actors in crypto, an assumption you dont feel a need to validate. I know there are a lot of shady actors who call themselves "market makers", but they are all tiny compared to us and we also have much to lose from doing shady stuff, primarily our reputation. I challenge you to find evidence that either of us did something bad (including, for example,price manipulation as you alleged on discord), or otherwise shut up🙃 So far you are the only one claiming proficiency with "tools of the trade" that both Wintermute and GSR quite publicly condemn

                      12 days later

                      @ "dr00shie"＃p5886

                      Self-reported circulating supply

                      1,663,068.00 ohm

                      Market making proposal from Wintermute

                      750gOHM

                      (750/1,663,068)X100≈0.045%.

                      Would 750 OHM, which is only 0.045% of the total supply, be an effective function of Market Making?

                      Self-reported circulating supply

                      1,663,068.00 ohm

                      Market making proposal from Wintermute

                      750gOHM

                      (750/1,663,068)X100≈0.045%.

                      Would 750 OHM, which is only 0.045% of the total supply, be an effective function of Market Making?

                        miyamasa11 It's gOHM, which currently has an index of 55.66… 750 gOHM would translate to 41,745 OHM, or roughly $13M.

                          IDKFAIRL I wish I could like this more than once. You took the words right out of my mouth. What is the point of "owning your liquidity" if you have to use a market maker

                          This also coincides flawlessly with the release of gOHM options that would allow a MM to profit quite a bit more off of their free liquidity

                          Step 1: get free loan of gOHM

                          Step 2: purchase a bunch of gOHM put options

                          Step 3: dump gOHM so that price crashes

                          Step 4: cash in on your put options (maybe even forcing spot price down further)

                          Step 5: buy back gOHM at lower price point after retail panic

                          Step 6: profit

                          bonus step: rinse and repeat

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