Proposal: Market Making Proposal from Wintermute Trading

Summary/Abstract:

This proposal is published for presenting the terms of $NDX market-making services to the Indexed.finance community and approving it:

  • Authorize Wintermute Trading as official $NDX market-maker
  • Transfer 1.5% of NDX supply (150,000 $NDX) to the Community treasury for market-making purposes as a loan to the Wintermute Trading. Wintermute Trading will have to return either the full loan amount or 1.2 million USDC (~50% premium to current price) in 1 year
  • Wintermute will commit to maintain inventory in Indices upon them being listed on any Tier 1 exchange. The amount invested will be 10% of AuM up to a total of $20 mln

Wintermute basic 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

Wintermute is backed by Lightspeed Venture Partners, Pantera, Blockchain.com Ventures and others

Wintermute Trading is registered with FCA for our OTC business

Wintermute Indexed.finance specific background

Wintermute believes index products will be one of the key themes in 2021 and as a result is looking to back several teams in the space with an ultimate goal of:

  • Listing the index products on key cefi exchanges and facilitating liquid markets on these products and their derivatives (starting with perpetuals, following with options)
  • Combined total AuM of index products exceeding $25B by end of 2021

Wintermute believes the key issue with these products not being adopted outside of defi is lack of market making support as market makers and exchanges are not looking to support/list them because of low AuM, while the AuM stays low because there is not enough adoption/interest outside of defi. Wintermute wants to lead that adoption by committing a significant part of it’s resources and at the same time getting exposure to leading teams by becoming the official MM in protocol tokens and direct investment. Wintermute expects to be active in governance matters.

Specifically for Indexed.finance community Wintermute commits to:

  • Provide liquid markets across all tier 1 cefi exchanges* (and a handful of 2nd tier as well)
  • Proactively support listing of $NDX on key western exchanges
  • Support a number of flagship Indices towards cefi and defi listings
  • In particular, once Indices are launched on tier 1 exchange*, Wintermute commits to hold 10% of the AuM for market making purposes with a minimum of $0.5 mln per INDEX, up to $20 mln in total for all listed Indices

*Tier 1 comprising of: Binance, Huobi, OKEX, Coinbase, Kraken and Gemini

Ask :

We would like to request the Indexed.finance community to pass a proposal to approve the transfer of up to 1.5% of the total token supply of $NDX for Market Making services of $NDX on key centralized exchanges.

We propose to Indexed.finance Community appointing a third party agent (Wintermute Trading) to act as the Indexed.finance Community Agent to market-make $NDX across cefi, defi and OTC

To facilitate the work of the Community Agent on the community’s behalf, we propose to authorize operational actions required to effectuate the market making, including release of up to 150K $NDX to the Community Agent from the Indexed.finance Token Supply for liquidity provisioning.

A Yes vote for this proposal would accomplish the following :

  • Approval of the above terms to enable the Community Agent to proceed with creating and transferring 1.5% of the total $NDX token supply from the community token allocation, where the proceeds will be directed towards market making.
  • The loan will be returned in 1 year, in Apr 2022 in tokens or in DAI/USDT/USDC equivalent at a price of $8 per token

A No vote would result in rejection of these terms

12 Likes

Yes … it’s definitely going to help NDX on the long :running_man:‍♂

1 Like

This one’s a no-brainer, if you ask me. Needs to happen.

1 Like

Really good idea. Wintermute is top class team and a world-class player to engage with.
The loan terms seem a bit low in my opinion as as 50% permium to current prices is a one-day move in crypto…
It will however bring $NDX liquidity, exposure and big name backing lifting all the index products boats at the same time…Great idea all in all.

1 Like

This is an amazing opportunity, definitely voting yes.

No one will we know how good NDX products are if they haven’t heard of it…

Currently gas fees are very high for most people to buy these products on uniswap.

This proposal will give NDX alot of market coverage. Allowing people from all sort of platforms to access the products…

It’s yay for…

1 Like

definitely a “when” not “if” proposal, love it

1 Like

:fire: Get on Binance, then Voyager :100:

100%! Thanks for running it by us!

1 Like

Yes from me :+1: This shouldn’t even be a question :smiley:

A contract has been created and signed by Wintermute, and proposed on chain for the DAO’s acceptance or rejection.

https://gateway.pinata.cloud/ipfs/QmUNeb7VP7PabZR9U9NxvKAzZ8fgfxRkbaiCLo4fqDT8J9