Code:
Title: PIVX x CoinAlpha (Armada Labs) - Binance Market Making
Name: PIVXxCoinAlpha
Term: 2 Cycles
Cycle Amount: 119 118 PIVX
Total Amount: 238 236 PIVX
Author: Jeffrey
Receiver: Jeffrey
Address: DTrZy9ePemyJrg5dyZXF54ZCHVoCN9TQwX
Status: Active
Vote Hash: 75db17e6821856c66a866d8674adb3e11037706ea15a6373adb764d940e48157Hi Everyone,
This proposal has been a long time running and has required me to have meetings with quite a few market makers in the past 4-6 months. I was introduced to a major MM company often used on Binance and recommended by them, WinterMute. Their requirements at this stage are out of budget as we would need over a million dollars in liquidity excluding their fee. Market making is a norm of practice for all exchanges that provide orders to facilitate trades. If it is done in a correct manner it also attracts others that run trading bots as well as other investors. If we can establish a healthy market it also assists with payment providers that use Binance as a gateway such as NowPayments and other swap aggregators. Keeping spread down is key to growth.
The guys from CoinAlpha have worked with us well over 2 cycles now to provide a liquidity mining campaign on their Hummingbot Miner Platform. This has attracted new investors, stabilized our markets and provided much needed liquidity to facilitate healthy trades. After some initial research by them they have recommendeded a MM strategy that provides the required liquidity as well as trades in a way to attract new investors and other trading bots. The strategy would be deployed by CoinAlpha's wholly owned Malaysian subsidiary, Armada Labs.
Why do we need a market maker on Binance?
Market making is a requirement set by all exchanges, I have made it clear to Binance that we aim to get a PIVX/USDT pair. The requirements provided by them was a more attractive market that consisted of healthy liquidity and an active order book. This market making will assist with meeting this requirement. I will then proceed to discuss this pair again and see if additional requirements are in place.
Funding:
We will start at the minimum liquidity amount which will be held in custody by CoinAlpha but will always be owned by the PIVX DAO. This amounts to 20K USD worth of BTC and 20K USD worth of PIVX. They will also offer us a discounted service fee of $2000 monthly.
I will use this proposal to cover 3 months initially of this service fee. Due to the size of this proposal I will divide it over 2 cycles. Should price change drastically I may need to submit a top up or if I have remaining funds they will be used towards future proposals to minus down from the amount requested.
Liquidity - 40K USD ( 188,292 PIVX)
Service Fees - 6K USD ( 28,246 PIVX)
Due to volatility and potential price change within these 2 cycles I will also ask for an additional 10% - 4600 USD (21,648 PIVX)
Submission fees - 50 PIVX
Total - 238 236 PIVX (119 118 PIVX / cycle)
I will be sharing some additional information from them once provided but will proceed to submit this.
Thank you for all your support. Lets keep building
Please note any and all market making activities are done via Armada Labs. Due to previous dealings with coinalpha for the HummingBot campaign their name was specified. However this entity does not receive payment or instruction for taking out market making activity
Voting Details:
To Vote YES for this proposal:
Code:
mnbudgetvote many 75db17e6821856c66a866d8674adb3e11037706ea15a6373adb764d940e48157 yes
Code:
mnbudgetvote many 75db17e6821856c66a866d8674adb3e11037706ea15a6373adb764d940e48157 no
Last edited by a moderator:
