Velar Technologies - Market Making Renewal Proposal
Authors: Velar Technologies (Storm King Trading - US Entity)
Summary : This proposal outlines an agreement for market making services, to be provided by Velar Technologies (also known as Storm King Trading, US entity), for the GFI token. The purpose of this proposal is to seek approval for a MM contract renewal.
Motivation: Velar Technologies has been supportive of GFI liquidity, on CEX and DEX venues, over the past 2 years in turbulent, volatile and illiquid periods - and therefore is seeking to renew the liquidity agreement. Both parties have had positive experiences working together and wish to continue the partnership based on the discussed terms below.
Specifications:
- Loan Size: 1,371,428.25 GFI (25% decrease from the existing/prior loan).
- Loan Term: 24 months
- Loan KPIS: Same existing Key Performance Metrics as existing/previous contract
- Payback Option (Strike Price Calculation): Velar agrees to return the full token loan to the community treasury at the end of 24 months or exercise one or both of the repayment options:
- 50% of loaned GFI tokens purchasable at $25% Out of the Money (set at Commencement)
- 50% of loaned GFI tokens purchasable at $50% Out of the Money (set at Commencement)
Further details may be found under the original Proposal.
Info on Velar Technologies:
-Velar Technologies is a leading proprietary algorithmic trading firm that specializes in digital assets.
-Website: https://www.velar-tech.com/
Credibility:
-Listed as a DYDX top MM (Ecosystem Report: dYdX Annual Ecosystem Report 2023 | dYdX Foundation)
-Preferred Coinbase MM (https://coinbase.bynder.com/m/6bc0abd4a8ed0b16/original/Market-Making-101-for-Asset-Issuers.pdf).
-Binance VIP Pairing Liquidity Partner (contributing to over 50 basis points of global spot volumes).
Voting:
YES vote: Authorize Velar Technologies to continue as a market maker and renew the Agreement
NO vote: Do not authorize Velar Technologies as a market maker