CIP-5: Market Making Proposal

Summary/Abstract:

This proposal is for the approval of Wintermute Trading and GSR to act as official CTX market makers.

Wintermute Trading

  • Authorize Wintermute Trading as an official CTX market-maker.

  • Wintermute Trading will commit to providing CTX liquidity upon CTX being listed on any exchange(s).

  • Authorize the transfer of 500,000 CTX from the community treasury to Wintermute Trading for market-making purposes in the form of a loan to Wintermute Trading.

  • Wintermute Trading agrees to either return the full 500,000 CTX loan amount to the community treasury at the end of the 12 month contract period OR exercise the option to purchase the CTX token amount specified below on the respective option expiry date.

  • 500,000 CTX 12 months from market-making inception date at a strike price of $9.75.

  • Should Wintermute choose to exercise their CTX option, the loan balance will be returned to the community treasury in the form of USDT.

Wintermute Background

Wintermute was founded in July 2017 by three Optiver veterans. Evgeny Gaevoy, founder and CEO, was previously head of ETFs (screen and OTC) at Optiver Europe, one of the largest ETF market-making desks.

Wintermute’s trading volume in 2H 2020 surpassed $70B and their average daily trading volumes in 2021 are over $2B.

GSR

  • Authorize GSR as an official CTX market-maker.

  • GSR will commit to providing CTX liquidity upon CTX being listed on any exchange(s).

  • Authorize the transfer of 500,000 CTX from the community treasury to GSR for market-making purposes in the form of a loan to GSR.

  • GSR agrees to either return the full 500,000 CTX loan amount to the community treasury at the end of the 12 month contract period OR exercise one or both options to purchase the CTX token amounts specified below on the respective option expiry dates.

  • 250,000 CTX 6 months from market making inception date at a market value of $2,500,000.

  • 250,000 CTX 12 months from market-making inception date at a market value of $3,750,000.

  • Should GSR choose to exercise one or both of their CTX options, the loan balance(s) will be returned to our treasury in the form of USDT.

GSR Background

Founded in 2013, GSR is the leading trading firm in the cryptocurrency ecosystem.

GSR has decades of experience managing global trading and quant businesses. The GSR team draws on experience from Goldman Sachs, Two Sigma, Nomura International, and Citadel, among others. Their collective insight has allowed GSR to build one of the industry’s fastest, most robust, and transparent digital asset trading systems.

Voting

  • Voting yes and passing this proposal approves Wintermute Trading and GSR to act as official CTX market makers and provide liquidity to any centralized/decentralized exchanges. Wintermute Trading will receive a loan of 500,000 CTX from the community treasury for this purpose. GSR will receive a loan of 500,000 CTX from the community treasury for this purpose.

  • Voting yes and passing this proposal approves our community to proceed with loaning and transferring a total of 1,000,000 CTX from the community treasury in accordance with Wintermute Trading and GSR loan terms and market-making services listed above.

  • Voting No would result in the rejection of this proposal and the terms herein.

  • Yes
  • No

0 voters

4 Likes

Fully support this and will improve CTX adoption and liquidity.

1 Like