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Active PIVX Liquidity Expansion

Jeffrey

Administrator
Staff member
Code:
Title: Liquidityexpan1
Name: Liquidityexpan1
Term: 1
Cycle Amount: 1
Total Amount: 141,315
Author: Jeffrey
Receiver: Jeffrey
Address: DMQ5NozAnauC5tWoCMu9z4XDh1efwbnYc7
Status: Active
Vote Hash: 95afa0cf404bcacda6b7ca7cc1f9fc8a559a400f6ac224f9cc248bae43fa8f4d

Hi everyone,

The main goal of this proposal is to enhance liquidity for our market makers across a diverse array of exchanges. This strategic initiative represents a pivotal step within a comprehensive plan, encompassing multiple top-ups, all geared towards achieving an optimal level of liquidity necessary to fortify and sustain a vibrant and healthy PIVX market and to meet liquidity requirements for additional listings and expansions such as Leverage/Futures and higher margin contracts.

Over the past six months, my collaborative efforts with two distinguished market-making entities have delved deep into the intricate nuances of PIVX, meticulously examining the factors that contribute to market inefficiencies. Our thorough analysis has conclusively identified the predominant challenge residing in the realm of liquidity. As we observe the market dynamics, a recurring pattern emerges—during significant price upswings, our bid walls undergo a substantial transformation, predominantly shifting towards market buys which is a good thing and shows our markets have active traders. However an issue becomes apparent when sellers, aiming to capitalize on profit margins, opt for market sells. In such instances, the insufficiency of bid orders becomes a glaring vulnerability in the system. The resultant scenario leaves the market without an adequate buffer to absorb and maintain the sudden surge in selling activity, jeopardizing the overall stability and coherence of the PIVX market and therefore making growth unsustainable.

To address this fundamental challenge, the proposed plan seeks to strategically infuse liquidity into the market at crucial junctures. By reinforcing bid orders during periods of heightened volatility, we aim to create a more resilient PIVX market that can seamlessly navigate through substantial price movements. This multifaceted approach not only acknowledges the existing challenges but also demonstrates our commitment to proactively address and rectify market shortcomings, fostering a more robust and sustainable environment for all stakeholders involved in the PIVX ecosystem.

Here is an example with DASH
1707640211602.png

As you can see for the DASH price to drop by -2% one would need 121K, Whilst PIVX:
1707640248523.png

Is sitting at 30K. The change won't be evident instantaneously but rather during moments of volatility where our market makers strengthen our orderbooks.

Eventually we will get to a stage where we have sufficient liquidity to then focus on growing our market with more listings that can be better maintained.
The liquidity at all stages belongs to the PIVX DAO. In some cases I control custody of the funds on an account that the market maker has API access to but in some cases such as the Binance market making custody is held by Aramada Labs.

Note: I will provide a breakdown of funds under request and during upcoming proposals. The value of all funds is subject to fluctuations in market conditions.


Funding:
1707640729503.png

I will be submitting this first series of liquidity top ups for 45,000 USD which equates to 141,265 PIVX
I will also be asking for my 50 PIVX back used for submitting this proposal.

Total = 141,315 PIVX

Voting Details:


To Vote YES for this proposal:
Code:
mnbudgetvote many 95afa0cf404bcacda6b7ca7cc1f9fc8a559a400f6ac224f9cc248bae43fa8f4d yes
To Vote NO for this proposal:
Code:
mnbudgetvote many  95afa0cf404bcacda6b7ca7cc1f9fc8a559a400f6ac224f9cc248bae43fa8f4d no
 
Last edited:
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