Hi Ohmies – There’s more market makers than just 2!
This is Masa from Bastion Trading.
I have commented previously on a thread on a proposal, and I have been following the proposals and the follow-on threads on market making services regarding OHM and gOHM. There were quite some opinions that maybe its optimal to have a more of open bidding for services or open invitation to market makers to make proposals. Of course, I know there’s already a poll out to decide on two very strong market liquidity providers, GSR and Wintermute, and this might be late, but why not – better late than never. Most of all, I wanted you all to know there’s a lot of other market makers out there who’d love to work with you.
Bastion Background:
We have a (well, at least I feel) to be a strong group of traders and coders who trade for a profession on the crypto markets – both on CeFi exchange and in DeFi. As part of our trading strategy, we also market make, and provide liquidity on tokens. We have been trading in crypto since the summer of 2017 so we’re not OGs, but not exactly fresh on the scene either. Since then, we have traded billions (USD) across many exchanges and DeFi venues. As a bit of further background, many of us were market makers for equity options across the globe at a few major investment banks and market making firms, including myself.
Our Proposal:
Bastion would like to make a proposal to be a market maker for Olympus (for a 6-month term – but of course, we can propose a long deal). Given the community's initial positive response towards the benefits (and valid concerns) of gOHM denominated service, we agree and propose the following terms for your consideration:
Bastion will endeavor to:
· Prioritize above all that the existing fair decentralized governance of Olympus is not harmed by the operation, in particular that:
· Each CEX engaged will be authorized directly by the Olympus community that Bastion would provide liquidity
· Bastion pledges that it will not at any point exercise any governance rights from any gOHM it holds
· Bastion pledges to not stake any/all tokens during the entirety of the deal period to protect the community from any dilution.
· Bastion will provide liquidity on the approved CEXs using our best efforts and solely use any tokens lent for the purposes of providing liquidity and promoting turnover and increasing visibility for Olympus
Further, Bastion would receive
· A transfer of 250 gOHM from the community treasury in the form of a 6-month loan for the purpose of market-making
· We recognize the community's concerns around staking and propose that to address these concerns that we receive the loan of tokens in 20% tranches each week over 5 weeks for a probationary period, during which the community has the option to opt-out of the deal via majority vote if conditions aren't met. We strongly believe that DAOs should be governed by their members.
· Bastion agrees to either return the full 250 gOHM loan amount to the community treasury at the end of the 6-month contract period, OR exercise the repayment option, allowing Bastion to purchase the gOHM token amount specified below on the respective option expiry date at a strike price, determined as:
o The daily TWAP price during the first 5 weeks of listing on a determined CEX(es) * 1.5.
Bastion suggests this longer striking period to further help protect Olympus from any potential market movements that could negatively impact gOHM tokens.
Some notes here, we’ve proposed a shorter period, as I think communities (and projects) over time would like to re-assess the benefits of having contracted market makers periodically in general and as we know in crypto one year is an eternity when it comes to change. The loan/option sizes are smaller as well to accommodate lower option price on the return.
We appreciate and welcome feedback on the above terms and look forward to continuing the conversation and hope to take part in the evolution of Olympus's vision.