This proposal is to renew the DAOs existing liquidity provisioning agreement with Wintermute for the 12 month period of JUNE 2023-JUNE 2024.
Additionally, this proposal seeks to authorize SkyNet Trading as an additional CTX market maker for the 12 month period of JUNE 2023-JUNE 2024.
1. Renew existing 2022 375,000 CTX loan with Wintermute for the 12 month period of JUNE 2023- JUNE 2024.
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Call option attached to the 375,000 CTX loan with a strike of $1.70 in 12 months.
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No treasury action is required at this time for this renewal.
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Option for CTX top ups in the event new CEX listings occur.
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Example: Tier 1 Exchange = 75k CTX
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Tier 2 Exchange = 35k CTX
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Max top up cap = 375k CTX.
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Call option on additional top ups = $1.70 with expiry date matching that original 375k CTX loan.
Wintermute’s Basic Background:
Wintermute is a leading crypto-native algorithmic trading firm, specializing in creating efficient markets across centralized and decentralized exchanges. 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. Since our inception, we have traded over $3T and expanded our presence across 80+ (de)centralized exchanges and various (non)EVM chains, continuously supporting and providing liquidity throughout the ecosystem for our partners and their communities.
Alongside our trading arm are Wintermute Ventures and Wintermute Governance, both enabling us to directly support projects where we know we can be true value- adding, develop a partnership, and help influence a positive outcome. Importantly, we do not target large ownership stakes; decentralized ownership is an important prerequisite to transitioning to a robust future.
2. Authorize Skynet Trading to act as official CTX Market Makers.
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Authorize the transfer of 375,000 CTX from the community treasury to Skynet Trading for market-making purposes in the form of a loan to Skynet Trading.
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Skynet Trading will commit to providing CTX liquidity on the following platforms: Coinbase, Huobi, Gemini
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More trading venues might be added when new listings of CTX would occur. Coverage for new exchanges is upon Skynet Trading’s discretion.
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Skynet Trading agrees to either return the full 375,000 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 OR a mixture on the same conversion.
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VWAP based strike price in tranches of 1/3 token loan amount for every 4 months of the agreement.
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Should Skynet Trading choose to (partially) exercise their CTX option, the loan balance will be returned to the community treasury in the form of USDT.
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Skynet Trading is a leading designated market maker firm for digital assets. Skynet Trading provides liquidity solutions and quantitative trading strategies to digital asset issuers, exchanges, and institutions across CEX and DEX platforms through their in-house built trading software. Skynet Trading’s team builds on a shared passion for crypto and experience working with many top-100 projects.
- Voting FOR this proposal will initiate these actions.
- Voting AGAINST this proposal will do nothing and subject the DAO to less liquidity provisioning across centralized exchanges, which may result in possible centralized exchange delistings and may create difficulties in further CEX expansions due to limited liquidity.
- This proposal is not intended to be investment or financial advice. Always do your own research. The Cryptex DAO, its contributors or community make no guarantees or warranties any efforts are successful.