This proposal is published for presenting the terms of MKR and DAI market-making services to the
Maker community and approving it:
- Authorize Wintermute Trading as official MKR and DAI market-maker
- Transfer 10000 MKR from the treasury for market-making purposes as a loan to the Wintermute Trading. Wintermute Trading will have to return either the full loan amount or 100 million USDC (~400% premium to current price) in 1 year
- Wintermute will commit to maintain inventory and liquidity in MKR and DAI across all major centralised and decentralised exchanges.
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 $3B
Wintermute is backed by Lightspeed Venture Partners, Pantera, Blockchain.com Ventures
Wintermute Trading is registered with FCA for our OTC business
Wintermute Defi and Maker specific background
Wintermute believes defi is the future of financial industry and Maker will be one of the pillars of new age. Wintermute wants to lead 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 or direct investments, examples of recent work in that direction:
- Designated MM for major defi projects like Polygon, Indexed, Skale, dydx exchange,
- Working with Paxos on de-risking Maker PSM collateral by depositing 500mil USDP
- actively supporting MKR and DAI trading on dex and cex for over two years
- integrated our trading system with Maker and PSM in order to keep DAI peg
Specifically for Maker community Wintermute commits to:
- Provide liquid markets for MKR and DAI across centralised exchanges*
- Support MKR and DAI liquidity on ethereum and other L2s via trading against the pool or directly LP-ing where necessary
- fund the other side of the pair with its own capital. If an exchange requires GBP, Euro, BTC, USDC, etc. to settle a trade, Wintermute will be able to provide it.
- Provide OTC services for large MKR trades - this would give best execution for potential buyers and also protect the price of the token for sellers as well
- Use MKR tokens received for a purpose of market making only. Wintermute would never lend, yield-farm or use those for voting.
*comprising of: Binance, Huobi, OKEX, Coinbase, Kraken, Gemini, crypto.com, binanceus and a few smaller ones
EDIT 28th of October - Call option strike price have been raised to $10k per MKR which means much better terms for Maker community and to show our commitment.