Proposal 26: Invalidate outcome of "FALCONX MARKET-MAKING PROPOSAL v2" proposal

[richard]

Summary

• It has come to light that the previously agreed terms for market making with FalconX are unfavourable
• Discussions / negotiations are underway investigating how we want to go about market making moving forward
• This proposal is a simple one invalidating the results of the FalconX market making v2 proposal, to un-muddy the waters and give us time to discuss properly
• Following this there will be another proposal with an improved market making deal, which may be with Wintermute, FalconX, or indeed another market maker

Motivation

It has come to light that the previously agreed terms for market making with FalconX are unfavourable:

Proposal 24: Market Making Proposal

Just read the v2 of the market making proposal: “The loan will be returned in 1 year, in March 2022 in CVP tokens or in DAI/USDT/USDC equivalent based on the price at the moment of transferring 2m CVP to FalconX.” https://snapshot.powerpool.finance/#/powerpool/proposal/QmTnsDzBbCsyyV1eAXUZuqcYcdBXV7XAucqt32HLbi7Hv2 Congratulations people, you just gave away a call option for 2m CVP to a randomly selected (without a transparent and fair open-to-competive-bids auction)…if CVP doubles in a year …

The management board are renegotiating with FalconX:

Proposal: Market-Maker change of terms

I support this move, we definitely need to either change terms or change the MM. Plz share MMs you know who can be a good candidate for PowerPool.

Meanwhile Wintermute have submitted a market making proposal with more favourable terms:

Proposal: Market Making Proposal from Wintermute Trading

I believe it’s a good idea to add a paragraph to this proposal, that if passed, FalconX MM proposal is deemed invalid, by doing this we don’t to run an additional proposal.

And the management board are looking into other market making options:

Proposal: Market-Maker change of terms

I support this proposal, but, are there any other candidates for MM?

I propose to invalidate the outcome of the previous market making proposals

Specifications

Option 1: Invalidate results of FalconX proposal
Option 2: Proceed with FalconX with the existing terms

Option 1 outcome

Invalidate the results of the “FALCONX MARKET-MAKING PROPOSAL v2”
https://snapshot.powerpool.finance/#/powerpool/proposal/QmTnsDzBbCsyyV1eAXUZuqcYcdBXV7XAucqt32HLbi7Hv2

After this proposal passes Powerpool will have no obligations to any market maker.

A subsequent proposal will create a new agreement with the market maker we decide to proceed with, if any. This may be Wintermute or could be another FalconX proposal, or indeed a different market maker entirely.

Option 2 outcome

We proceed with FalconX with the previously agreed (now believe to be unfavourable) terms, no other market makers are involved.

[richard]

I think splitting the market making discussions into two proposals makes sense, as opposed to rolling this clause into (say) the Wintermute proposal, because there may be CVP holders who would like to invalidate the previous agreement without necessarily accepting a new agreement.

Rolling it into the wintermute proposal is messy because if the community votes against the wintermute one then we haven’t managed to invalidate the falconx one.

[pahuyswap]

I like what @DrGonzo said on discord. If it takes too long for @wishful_cynic to run his proposal on snapshot, then we need to launch FalconX cancel proposal.

[richard]

Makes sense to me. This proposal is oven ready so good to go if there is a delay with the wintermute proposal for whatever reason.