Renew Wintermute Trading/SkyNet Trading

This proposal seeks to renew the DAOs existing liquidity provisioning agreements with both Wintermute Trading and Skynet Trading.

1. Renew Wintermute Trading to act as official CTX Market Makers

Wintermute’s Basic Background:

  • Wintermute Trading 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 $4.6T USD in volume and expanded our presence across 80+ (de)centralized exchanges and various (non)EVM chains, continuously supporting the ecosystem for our partners and their communities.

  • Alongside our trading arm, Wintermute Ventures and Wintermute Governance support and work with leading crypto projects with the goal of truly adding value, enabling partnerships, and helping shape a positive outcome for the ecosystem. Importantly, we do not target large ownership stakes; decentralized ownership is an important prerequisite to transitioning to a robust future.

Loan Specifications:

  • An initial loan of 400,000 CTX for 730 days (2 years) from the DAO Treasury for liquidity provision purposes.

  • Additional loan top-up of 50,000 CTX for each Tier 1 Exchange listing of CTX. (i.e., Binance, OKX, Bybit)

  • Additional loan top-up of 25,000 CTX for each Tier 2 Exchange listing of CTX. (i.e., Kucoin, Gate, Bitfinex, WOO, Crypto.com, and other retail outlets)

Loan Return:

  • Wintermute Trading will return the first 200,000 CTX at the end of year 1 and the remaining loan amount including top-ups (if triggered) at the end of the 2-year loan term OR exercise the repayment option below.

  • Repayment Option: The repayment option allows Wintermute Trading to purchase CTX from the loan amount according to the Option schedule below:

Options:

  • 200,000 CTX with a Strike at market price on the day of token transfer and expiry on the 365th day.

  • 200,000 CTX with a Strike at market price on the 365th day and expiry on the 730th day.

  • Any CTX top-up amount with a Strike at market price on the day of token transfer and expiry on the 730th day.

  • Should Wintermute Trading choose to exercise our repayment option, the value of the loan at the strike price will be returned to the DAO Treasury in the form of USDT or USDC assuming a USDC/USDT price of $1.

Wintermute’s CTX Loan Plans:

  • Proactively guide discussions and support listings of CTX on key exchanges on day one and going forward.

  • Provide liquid markets across major centralized exchanges.

  • Provide liquidity across DeFi aggregators such as CoW Swap, UniswapX, 1inch, Bebop, Airswap, and Hashflow.

  • Be the go-to liquidity provider for any OTC & Institutional flow, providing competitive prices for trades $100k+.

  • Borrowed CTX will be used exclusively for liquidity provision purposes. NO farming, lending, governance, etc.

2. Renew Skynet Trading to act as official CTX Market Makers.

  • 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.

https://skynettrading.com

  • Authorize the transfer of 200,000 CTX from the DAO Treasury to Skynet Trading for market-making purposes in the form of a loan to Skynet Trading.

  • Skynet Trading will commit to providing CTX liquidity on the following platforms: Coinbase, Huobi, Gemini and on Base via Aerodrome.

  • More trading venues might be added when new listings of CTX would occur. Coverage for new exchanges is upon Skynet Trading’s discretion.

  • Skynet Trading agrees to either return the full 200,000 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.

  • TWAP based strike price.

  • Should Skynet Trading choose to (partially) exercise their CTX option, the loan balance will be returned to the DAO treasury in the form of USDC.

- Voting FOR this proposal will initiate these actions.

- Voting AGAINST this proposal will subject the DAO to zero liquidity provisioning across exchanges, which may result in disruptions due to limited/lack of liquidity.

- This proposal is not intended to be investment or financial advice. Always do your own research. The Cryptex DAO, its contributors or community members make no guarantees or warranties any efforts are successful.

1 Like

I will vote for this proposal as it is essential for the Cryptex DAO to maintain liquid markets and ensure that people can participate in governance.

By renewing the existing liquidity provisioning agreements with both Wintermute Trading and Skynet Trading, we can continue to benefit from their expertise and support in expanding the presence of CTX across various centralized and decentralized exchanges. This will not only enhance the accessibility and trading experience for our community members but also contribute to the overall growth and stability of the Cryptex ecosystem.

Furthermore, the option for these market makers to exercise their repayment options in the form of USDT or USDC provides a level of flexibility and security for the DAO treasury.

Ultimately, the DAO is grateful to have the support of Wintermute Trading and Skynet Trading as market makers, and this proposal reaffirms our commitment to creating a robust and liquid market for CTX.

Supportive as well, and excited by the DEX and potential expanded CEX coverage in these renewals. Thanks Joe for fostering a strong continued relationship with these market makers.