Again happy to have you here, and to see the proposal:
Under the catagory “developers” you can also find the sub catagory " function x proposals, there you are more likely to get (more) feedback and it is easyer to find back. As well it then being dedicated to your proposal.
What is the normal continuation after the first year? Will you than fully stop providing liquidity, or propose another loan, or continue using own funds?
I agree with @Alchimist that kucoin would also be nice to add out of the existing exchanges
and @kenorb has formulated all other questions i have that come to mind for now
Lot’s of questions here, good to see. Some of our team is a bit light these days due to the Lunar New Year, but I’ll try to put together some of these answers.
In response to @Alchimist - we decided the markets based on a discussion with the FX team. These are the three markets by volume and with high confidence liquidity scores, which means most transactions are happening there:
As for @Jan - ideally, this would be the start of a long-term relationship between the FX Community and Kronos. After a year we’d post another proposal to continue the service. We’d have a formal agreement between the entities, which would be one thing to guarantee we didn’t disappear with the funds.
@kenorb asked about things like formal agreements - that will take place if this is approved. The main thing is that both us and FX wanted to operate in a transparent way, which is why we put it to the community first.
At the end of the day, our reputation is the biggest thing, its what allows us to be a designated market maker such as on dYdX as well as deal flow for our Ventures arm and market-making service.
Other random questions: How can the community benefit? Will other LPs earn less?
Investors will have better access in or out of the token, making it more robust as an asset. Other market makers will have to compete if they want to earn more, which is a good thing for everyone.
Is the loan interest free? Or profit is going to be split somehow?
The loan is interest-free as it’s idle capital for FX. Market-making can be very risky depending on market conditions and there aren’t any guarantees about profitability. Other market makers have structured similar deals in DeFi, this is a pretty common format.
Which blockchain you’re going to use for liquidity?
It will be market-making on CEXes, so not dependent on any specific blockchain.
For those asking about our capabilities, you can also check us out as a top 10 trader on FTX. Kronos trades across every major CEX, but FTX is one of the few places with a leaderboard.
Guys, they can only use what’s available on the market. If the exchanges don’t support fxcore, these guys are not magically going to make it happen. They’re just here to support the order books and trust me, FX needs it. I just tried selling a substantial amount on kucoin and it was absolutely pathetic. I gave up halfway and just did uniswap because there’s just no buy or sell support. Yes, kucoin is not part of the proposal but I was using it as an example.
This is great news, looking forward to your proposal. If I may suggest one thing, is it possible to include Kucoin mid way, or depending on market conditions to trigger additional funds for it, say to 7M perhaps…
I feel a small clause with regards to this may help in-between the proposal, so that users across, may find that Kucoin is less restrictive to their regions.
Or let’s say we surprisingly get listed on Binance in-between the year contract, we can therefore use this reserve of 1m for it, dispatched conditionally by the team.
kucoin is a musthave for many regions since upbit and bithumb are not really available in western regions and Coinbase for example excludes Germany.
Kucoin is #1 altoin exchange from operability and region support perspective and should be added.
Instead of 6m on 3 exchanges i would rather go for 8m and then go 2m on every of that 4 and if binance will be added for example draw out 500m per exchange and swap them over to binance positions.
Still some questions remains unanswered.
If you loan those, let us say 8M, coins what happens after that 1 year contract runs out. Will you pay back the 8M FX no matter what happened? Will you pay the USDT/BTC equivalant at the start time or end time?
i think this need to be fixed terms before such things could be decided.
I would propose the loan contract whould be fixed on repay FX only, with the same number of coin, the interest free loan is the payment for the services.
The Coins have to be in a market MAKER postion and it is forbidden to place the orders as taker (log of all transactions). Also the Market Maker postion need an uptime tracking, so that its not possible to let it lay in cold wallets or staking. This has to be monitored at all times and be visible for the dao.
If for example a bear market breaks in and you take away losses from every project you provide liquidity for, how is it ensured, that you dont loose the coins or cant pay them back going bankrupt?
Do you have an insurance covering for that?
I think if you manage to answer these points, most of the community and team would be behind it.