Token holder DAO Governor Bravo Proposal
DAO Elected Representative Sponsor:
Flowdesk is the leading regulated digital assets Market Making as-a-Service infrastructure provider for token issuers, exchanges, and institutions. Our model offers token issuers a fully transparent and capital-efficient approach to managing liquidity on both centralized and decentralized exchanges. We enable our clients to directly manage their own capital, while giving them access to our OTC and execution services supported by our global trading desk.
Our Market-Making as-a-Service model has been designed to improve trust, control, and fairness. We trade with the token issuer’s capital and are compensated with a flat retainer fee, solving for misalignment of incentives. This has several advantages:
- Full control over the trading strategy - Comprehensive set of data & analytics to facilitate reporting - On-the-fly parameter adjustment - Trade and custody assets with a regulated counterparty - Better forecasting of costs
We are not a hedge fund or a prop desk, which gives comfort to our more than 100 clients that we will never trade against them or engage in controversial market behaviors. This is backed by robust internal conflict of interest policies
Liquidity for T is fragmented and essentially concentrated on Binance. Prominent exchanges like OKX, Coinbase or Kraken exhibit varying levels of liquidity in the 2% depth bucket.
We are presenting our Market-Making services with the goal of enhancing the overall liquidity of T across CEXs. This initiative is envisioned to lay the groundwork for a more extensive collaboration with the DAO, with the aspiration of nurturing a long-term partnership.
We suggest a scope of 7 pairs on the following exchanges:
- Binance (USDT & BUSD) - OKX - Coinbase - KuCoin - Kraken (EUR & USD)
We are able to trade on more than 100 CEXs/DEXs, and we can tweak the scope as needed/required. Unfortunately we are not able at this time to trade on Korean exchanges due to local restrictions.
In DeFi, we will mostly cover Curve and Balancer, ensuring prices are in sync across the board and capturing any arbitrages in the process. We can also trade there for hedging purposes.
|Option 1||Threshold to provide ~35M T and $650k in quote currency assets (stablecoin/ETH/BTC…)|
|Option 2||Threshold to provide ~75M T, Flowdesk to run a twap/vwap sell program to fund the other leg used for MM.|
Liquidity metrics and inventory requirements can be tweaked and tightened.
We trust the DAO will notice that the inventory requirement amounts to only ~0.8% of the circulating supply and that these funds are still the DAO’s property (no loan). These funds can be withdrawn and are in custody with us (Fireblocks/Ledger), and deployed as required on exchanges.
OTC & Execution:
It is our understanding that the DAO (and/or DAO participants) may have various liquidations/OTC/diversification needs. As part of this proposal, the DAO will be able to trade up to $400,000 in notional value with our OTC desk per month for no additional cost.
We can provide direct quotes by chat or voice and also run bespoke algorithmic execution strategies to minimize market impact and buy/sell a block of asset over a period of time.
|Price||$14,250/month or $17,000/month for a payment in T|
|Duration||12 month contract|
We are happy to be more aggressive on pricing should you be interested in paying more upfront.
We are committed to partnering with Threshold and developing a strategic long-term relationship. There are several avenues of synergy between ourselves, our client base and Threshold Network.
- tBTC liquidity across DeFi and CeFi (important for a lot of liquid funds)
- BTC wrapping for our clients (this goes hand in hand with the above)
- Facilitating OTC clips in tBTC
- Synergies with our clients looking to diversify their treasury
- Synergies with Flowdesk’s treasury
Thank you for taking the time to read through our proposal. I am looking forward to answering any questions you may have.