Wintermute Trading would like to extend our market making agreement with BarnBridge and continue to be the main market-maker for BOND on centralized exchanges, as well as the go-to market-maker for OTC institutional flow.
To continue our partnership and ensure we are providing sufficient liquidity across all major centralized exchanges, we are requesting an additional loan of 250,000 BOND (~$2.23m at current prices) for 12 months.
This proposal outlines the motivation, background, terms and commitments of extending Wintermute’s BOND market-making services to the BarnBridge community. Specifically, to approve the extension of Wintermute Trading as an official market-making partner of BOND, and to authorize the transfer of 250,000 BOND from the DAO’s treasury to Wintermute Trading for market-making purposes in the form of a loan over 12 months. In return, Wintermute will continue to provide efficient and liquid markets on centralized exchanges, and promote BOND’s accessibility through institutional and decentralized channels.
Prior to the establishment of the BarnBridge DAO, Wintermute Trading had entered into a market making agreement with the BarnBridge Team. At the time, Wintermute received a loan of 80,000 BOND tokens which was originally worth $2.5m USD with an attached call option. Given the unfortunate decline in the market and subsequently the price of BOND, these tokens are now worth $716k USD. This makes it challenging for us to sufficiently market make across tier 1 exchanges like Binance, Coinbase, Kraken, etc. and with the agreement coming to an end we are looking to reevaluate the loan amount.
With the approval of the community, Wintermute would love to continue our market-making partnership with BOND. However, in order to provide sufficient market-making services we would require a similar loan value as agreed upon previously.
Wintermute’s Basic Background:
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.
As of January 2022, Wintermute has traded over 250+ digital assets and 20,000+ digital asset pairs across 80+ exchanges (DEXs and CEXs) and over $1.9T in cumulative trading volume since January 2020. We trade over $5B a day in volume on average, continuously supporting and providing liquidity throughout the ecosystem for our partners and their communities.
Wintermute is backed by Lightspeed Venture Partners, Pantera, Blockchain.com Ventures and others.
Wintermute Trading is registered with FCA for our OTC business.
Wintermute’s commitment to the BarnBridge community:
- Provide liquid markets across all tier 1 CeFi exchanges* (and a handful of tier 2 exchanges)
- Ensure BOND buyers/sellers are receiving an efficient price across leading DEXs
- Market-make across DeFi aggregators such as 1inch, paraswap, matcha etc.
- Continue to proactively guide discussions and support listings of BOND on key western exchanges
- Wintermute also commits to be the go-to market-maker for any OTC institutional flow, providing competitive prices for tickets starting from 100k USD and beyond
- Borrowed BOND will be used strictly for market-making purposes. No governance voting, farming etc.
*consisting of: Binance, Huobi, OKEX, Coinbase, Kraken, Gemini, Crypto.com, BinanceUS and a few smaller ones. (If listed on these exchanges)
Wintermute would like to request the BarnBridge community to approve the transfer of 250,000 BOND tokens, from the DAO’s treasury to Wintermute Trading for Market Making services of BOND on key centralized exchanges in the form of a loan over a 12 month period.
Wintermute Trading agrees to return the full 250,000 BOND loan amount and the additional 80,000 BOND from the previous agreement 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 330,000 (250,000 + 80,000) BOND loan amount on the respective option expiry date at a strike price specified below.
The Strike Price:
- P + 30% where P = VWAP (volume weighted average price) of the first 7 days of trading once the market making agreement commences.
- The price of BOND will be sourced from CoinGecko
Should Wintermute Trading choose to exercise our repayment option, the loan balance will be returned to the BarnBridge 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.
Following community discussion and feedback after 5 days, I will look to initiate a Snapshot Vote with voting options:
- Yes - Approve Wintermute Trading as a market-maker subject to proposal specifications
- No - Reject Wintermute Trading as a market-maker