SAIP #39: DWF Labs $MIM Loan and Market Making Proposal

Governance Proposals General Proposals
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SAIP #39: DWF Labs $MIM Loan and Market Making Proposal

Tl;dr Provide 100k MIM to the DAO Market Makers, coming from the DAO treasury to deepen MIM liquidity on CEXs.

Who is DWF Labs?

DWF Labs is a crypto native investment firm and market maker, seeking to support bold founders who want to build the future of Web3 and ecosystem. DWF Labs is an affiliate of Digital Wave Finance, one of the world’s leading high frequency cryptocurrency trading firms founded in 2018, which is trading on more than 60 exchanges, CEXs and DEXs.

Since inception, DWF Labs has worked with more than 400 projects and provided customized ecosystem support, a few selected partnerships:

Alongside with investment and market making, DWF Labs also provides support on DeFi liquidity, token design, PR/Marketing, exchange listings, code and security audit. We aim to be a true ecosystem partner.

DWF Labs has already successfully partnered with the DAO previously to improve $SPELL off-chain liquidity in AIP #28, which can be found here.

Introduction

Despite its deep on-chain liquidity, $MIM liquidity on Centralised exchanges is currently very poor. Having good CEX liquidity is extremely important for smooth on ramp and off ramp of capital, and a valuable onboarding tool for new $MIM users.

Additionally, poor CEX liquidity can lead to delistings and issues with the CEX providers, hurting the Abracadabra Money ecosystem.

Specifications

Given the recent unfolding of the crypto market, we strongly believe that DWF can improve MIM liquidity on the different CEXs it is listed on. In order to execute this liquidity improvement, DWF proposes a loan model, where the Abracadabra DAO would provide 100k $MIM to DWF Labs as a loan to start the market making operations.

DWF would provide the other side of the order book, in this case USDT, and then require a 4k monthly payment from the DAO treasury to execute the market making operations and order book depth.

The initial deal would be lasting 8 months, and can then be re-assessed in following proposals.

Next Steps

The current proposal will remain as an RFC for 48 hours, and will then be moved to voting as AIP #39.

The current proposal is time sensitive, so voting has already been posted and will last 72 hours.

Snapshot voting will start tomorrow, 16:00 CET and last 72 hours. It can be found here.

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This proposal seems reasonable and valuable for the DAO in my opinion.

Having a solid MIM liquidity on CEXs is important and should be achieved as soon as possible!

On a personal note, I can say that working with @dwflabs in the has has been extremely professional and efficient, I am excited to see what SPELL holders think of this, and move it to a vote as soon as possible.

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Thank you for the proposal! It seems very reasonable. While I don’t personally see that much demand for MIM on CEXs, I do think that there could be demand in the future. I also think having a MM helps with maintaining the current MIM listings, and potentially set the stage for future listings.