Hi Ampleforth DAO community!
Wintermute is excited to put forward our FORTH liquidity provision partnership proposal to the community!
This proposal outlines the motivation, background, terms and commitments of FORTH liquidity provision services to the Ampleforth DAO community. Specifically, to approve Wintermute Trading as an official liquidity provider for FORTH and to authorise the transfer of 750,000 FORTH from the DAO’s treasury to Wintermute in the form of a loan over 12 months.
In return, Wintermute endeavours to actively guide discussions with centralized exchanges from day one, provide efficient and liquid markets on centralized exchanges that are supported by Wintermute, and promote FORTH’s accessibility through institutional channels.
Wintermute is the leading DeFi liquidity provider across multiple chains, and instrument types and aims to steer market accessibility throughout both DeFi and CeFi. As such, we pride ourselves in fostering long-term relationships and value-creation, partner-protocol alignment, and welcome the opportunity to support innovative, DeFi-leading protocols such as Ampleforth, ensuring sufficient liquidity for FORTH across all relevant CEX markets.
Wintermute believes DAO/governance participation is integral to the adoption and success of decentralized protocols, and therefore, the ability of an individual to participate with minimal transaction costs. Thus, It’s important to ensure potential demand is not bottlenecked by insufficient liquidity, and that valuable community members are not discouraged by large spreads. Wintermute would like to lead the liquidity efforts and eliminate $FORTH market inefficiencies across CeFi and DeFi, by committing a significant part of our resources and doing what we do best.
Wintermute’s Basic Background:
Wintermute is a leading crypto-native algorithmic trading firm, specializing in creating efficient markets across centralized and decentralized exchanges. 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. Since our inception, we have traded over $3T and expanded our presence across 80+ (de)centralized exchanges and various (non)EVM chains, continuously supporting and providing liquidity throughout the ecosystem for our partners and their communities.
Alongside our trading arm are Wintermute Ventures and Wintermute Governance, both enabling us to directly support projects where we know we can be true value-adding, develop a partnership, and help influence a positive outcome. Importantly, we do not target large ownership stakes; decentralized ownership is an important prerequisite to transitioning to a robust future.
Wintermute’s commitment to Ampleforth and its community:
- Provide liquid markets across major centralized exchanges.
- Proactively guide discussions and support listings of FORTH on key exchanges on day one and going forward.
- Wintermute also commits to being the go-to liquidity provider for any OTC institutional flow, providing competitive prices for tickets starting from 100k USD and beyond.
- Borrowed FORTH will be used exclusively for liquidity provision purposes. No farming, lending etc.
Wintermute is requesting approval for a 12-month loan of 750,000 FORTH from the DAO’s treasury for liquidity provision services.
Wintermute Trading agrees to return the full 750,000 FORTH loan amount to the DAO’s treasury at the end of the 12-month contract period OR exercise the repayment option below. The repayment option allows Wintermute Trading to purchase the full 750,000 FORTH loan amount on the respective option expiry date at a strike price specified below.
The Strike Price:
- P + 25% where P = the spot price of FORTH token once the liquidity provision agreement commences.
- The price of FORTH will be sourced from CoinGecko
Should Wintermute Trading choose to exercise our repayment option, the loan balance will be returned to the Ampleforth DAO treasury in the form of BTC, ETH or USDC assuming a USDC price of $1, and using BTC or ETH CoinGecko price at 23:59:59 UTC on the expiration date of the agreement.
If approved by governance, 750,000 FORTH will be sent from the DAO’s treasury to Wintermute’s address:
Following community discussion and feedback after 7 days, I will look to initiate a Snapshot Vote with voting options:
- Yes - Approve Wintermute Trading as a liquidity provider for FORTH subject to proposal specifications
- No - Reject Wintermute Trading as a liquidity provider for FORTH