Proposal 54: Market Making Proposal from Gotbit

Annotation

We’ve noticed that all the funds from the previous market maker were returned to the project multisig. This proposal presents the terms of $CVP market-making services to the PowerPool community to authorize Gotbit as an official $CVP market-maker.

Gotbit introduction

First of all, we’d like to point out that we’re almost day-one PowerPool fans. We’ve been farming PIPT, YETI, ASSY, and YLA all along. We believe that “the future of France" is in sophisticated builders like the PowerPool core devs, and by creating such a proposal, we’d like to support the ecosystem and the project.

Gotbit has been in space since 2017. We worked with 500+ different projects, teams, and concepts during this time. In our experience, founders are most productive when they can spend most of their time building the product.

Our focus is to support projects in each area, starting from the very beginning steps (Token Economy, Roadmap, Backers) and ending with their Launch and Market Strategy. In the PowerPool case, we see a substantial base in tech, project reputation, and partnerships with the most significant DeFi projects in the Ethereum ecosystem. In other words, we think that PowerPool is underrated. We hypothesize that the critical thing missing is token market effort. That is why we want to offer our resources to the final stage of the rest of the project’s life — market making.

As an example: the 2-years road from tier-3 exchange to Coinbase listing. It was a mix of quality and patience, with a lot of real street marketing actions and professional market managing. Twitter announcement link.

Our team members graduated from different top schools and hackathons with an average experience in blockchain development of 4+ years.

In our portfolio, we have fully developed projects such as IDO platforms (Zelwin), NFT Marketplaces (PenguinKarts), DeFi Apps (Staking, Farming), Bridges (XinFin, DBA), Games. On the other hand, we keep warm relationships with the VC side of the market, and you can check the list of our partners on the website. Besides, Gotbit is closely working with several audits companies and firmly understands the value of cybersecurity.

Gotbit strongly believes that market, project idea, and marketing do not work separately and vice versa showing the maximum result in coaction of these factors. That’s why we are deeply integrated into each project’s lifeline. Every week we have ~5 launches on CEX or DEX (supporting all networks), preventing the weak launch (according to global market conditions and TGE trends) or any attack (like a sniper). On DEXes, we are using our unique algorithm to fill sell/buy orders directly, check the mempool, and work primarily with the organic market.

Some of our live examples: 1) HEC; 2) KLO; 3) HAI; 4) UFO; 5) UPI.

Proposal

Our priority on the market is to make it attractive and reliable for traders. Based on our experience, the critical thing here is the balance between the project’s progress and the strength of its markets. Our job is to keep this balance according to the project stage.

Based on our experience Gotbit will work with USDT/BUSD and ETH pairs Binance, Huobi, Gate, OKX, and MEXC due to the liquidity volumes and quality. As Market Makers, we will focus on supporting the product announcements with market actions like liquidity management, a tighter spread, and arbitrage avoidance. We will discuss all details with the project personally. Our basic KPIs are: spread at least < 0.2% and ± 2% depth > 50k $ on all pairs. These numbers will be adjusted according to the local goals in extreme market fluctuations.

We ask for 3% of CVP supply (3 million $CVP) for market-making purposes. The number of tokens consists of 2 parts (~50/50) – daily needs and extreme reserve. While the first one will cover all the order books on regular trading days, the second one will be used in moments of higher volatility to avoid unexpected pumps or crashes. Both situations are bad for the project’s reputation and signal the market’s weakness.

The contract is based on several stages — one month, three months, and one year. In case of any issues between PowerPool and Gotbit, or the community decision, the contract can be stopped or extended. In case of contract termination, Gotbit should send all initial funds back to the PowerPool wallet within one month.

Our ERC-20 address: 0x8A57cA1bC98F281BfA0e4cb60114190F03110A50

1 Like

I think liquidity management is important for the project’s future. The main KPI should be deeply liquid market for $CVP.

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Absolutely support this proposal moving forward to a vote.