Enable SHU Listing & Trading on a Centralized Exchange

Shutter DAO DAO Proposals
1
Proposal Title Author(s) Phase Type Date Created
Enable SHU Listing & Trading on a Centralized Exchange Artis Systems I On-chain 17 May 2024

Title

Enable Shutter Token (SHU) listing and trading on a centralized exchange (CEX)

Proposal

  • Transfer 50,000 USDC to Artis, who will then transfer 50,000 USDC to the CEX for listing fees

  • Expressly authorize Artis to conduct market making activities for Shutter DAO 0x36

  • Transfer 2,400 USDC to JLH to cover annual account custody, balance report and monitoring bot

Background

Shutter Token (SHU) is the governance token of Shutter DAO 0x36.

Shutter DAO 0x36 currently supports a SHU/USDC pool on Uniswap v2 on Ethereum Mainnet, and is considering supporting additional SHU/USDC pools on Uniswap v3 on Optimism Mainnet (an Ethereum L2) and Swapr on Gnosis Chain. SHU is also available for trading on other DEXs and CEXs. However, Shutter DAO 0x36 does not support these pools.

Artis has been working to list SHU on a particular CEX. The CEX cannot be identified here due to a confidentiality clause in the listing agreement, and also in order to ensure the CEX can issue an exclusive announcement upon the listing going live. Artis believes the CEX is a mainstream, reputable centralized exchange, which can add value to Shutter DAO 0x36 and the SHU token.

Potential Benefits of a CEX Listing

Broader Audience: CEXs typically have larger user bases than DEXs. A larger user base may expose SHU to a larger and more diverse audience, including institutional investors and retail traders who may not be familiar with decentralized exchanges. Additionally, CEXs often promote new listings through their marketing channels, social media, and newsletters, which may increase SHUā€™s visibility.

Reputation Boost: Prospective token purchasers may view SHU as more legitimate and trustworthy.

Increased Trading: CEXs typically have higher trading volumes compared to DEXs. Increased trading may lead to better liquidity for the token, making it easier for users to buy and sell without significant price slippage. Furthermore, more buy and sell orders may create a deeper market, which may help in stabilizing the SHU price.

User-Friendly Interfaces: CEXs offer more intuitive and user-friendly interfaces than DEXs. CEXs also provide fiat on-ramp services, allowing users to purchase tokens directly with traditional currencies, which can simplify the buying process and attract more users.

Advanced Trading Tools: CEXs offer advanced trading features such as margin trading, stop-loss orders, and futures contracts - which can attract more sophisticated traders. CEXs also provide robust APIs for algorithmic trading, enabling developers to build trading bots and other automated trading systems.

Details

- Transfer 50,000 USDC to Artis, who will then transfer 50,00 USDC to the CEX for listing fees

Shutter DAO 0x36 will transfer 50,000 USDC to Artis. Artis will then pay the CEX listing fee of USDC 50,000.

This is a one time transfer.

Expressly authorize Artis to conduct market making activities

Shutter DAO 0x36 will expressly authorize Artis to conduct market making activities for it on:

  • the CEX, and
  • all DEX pools to which Shutter DAO 0x36 provides liquidity

Transfer USDC 2,400 to JLH to cover account custody and monitoring bot for 1 year

Shutter DAO 0x36 will transfer 2,400 USDC to JLH. JLH will manage the account which custodies the market making funds and create a monitoring bot.

Segregating strategies and funds is considered best practice. JLH will provide independent asset oversight, ensuring that all Shutter DAO 0x36 members have access to accurate account information.

This is a yearly transfer. In the future, Shutter DAO 0x36 may consider creating a payment stream to JLH for this purpose.

Platform

Fractal (on-chain transfers will be executed if the proposal is approved)

Executable Code for Fractal

Transaction 1 - Transfer 50,000 USDC to Artis

Target Address: 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48

Function Name: transfer

Function Signature: address,uint256

Parameters: ADDRESS TBA, 50000000000

ETH Value:

Transaction 1 - Transfer 2,400 USDC to JLH

Target Address: 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48

Function Name: transfer

Function Signature: address,uint256

Parameters: 0x39EE88e8c70f289a28892D062aB0D4EB06432Fa0, 2400000000

ETH Value:

Voting Options

Vote ā€œYESā€ to approve this proposal

OR

Vote ā€œNOā€ to reject this proposal

OR

Vote ā€œABSTAINā€ if you do not have an opinion but want to help the vote reach quorum

1 Like
2

I am not convinced that spending $50k to be listed on an unnamed CEX is good value for money. I would prefer to focus on supporting trading on the L2 DEX in the short term, not least because DEX volume is also likely to drive CEX listing without the need to pay listing fees.

1 Like
3

If the cex is not one of top tier2 cex such gate, bybitļ¼ˆI believe okx,cb do not charge and bn charge much more than 50kļ¼‰ I will vote no. Listing on cex is super important I believe. But list on a low liquidity cex with listing fee is not acceptable.

3 Likes
4

Sticking to the DEX only narrative can be strong for some projects and I definitely see where that would come from considering the value proposition of Shutter. However, we canā€™t deny that in order for the token to become a healthier premise than it currently isā€¦we are lacking some organic participation. There is no easier way to reach a wider audience than through setting ourselves up for a path of growth to the bigger CEXs. It simply is not realistic to expect a T1 to T1.5 (think of KuCoin or OKX, HTX etc.) to be willing to have a conversation surrounding listing. If we can prove a track record on a low cost exchange (from maintenance perspective) then there is a conversation to be had with the bigger names. There simply are no shortcuts unless you have undeniably aggressive upward drift.

The sophisticated participant is treated to their DEX venues and can trade in and out to heartā€™s content but if we stick to our guns on said DEXs, we will remain covert. Happy to answer more questions

5

This proposal received mixed / limited feedback here on the Forum, so I suggested that Artis put this proposal to a ā€œTemp Checkā€ vote on Snapshot so we could see the sentiment of all SHU token holders.

The ā€œTemp Checkā€ vote on Snapshot is now open for voting:

https://snapshot.org/#/shutterdao0x36.eth/proposal/0x047c9832467cbce46a6c0830f4431267af58e8758c458b8691a079da2c412d54

6

Wait so we are supposed to vote on a proposal to spend 50k on a CEX for listing fees but weā€™re not allowed to know where we spend the money?

ā€¦ is this proposal real?

1 Like
7

Update:

:x: REJECTED - 10% Yes, 90% No

ā€œTemp Checkā€ - Enable Shutter Token (SHU) listing and trading on a centralized exchange (CEX)

https://snapshot.org/#/shutterdao0x36.eth/proposal/0x047c9832467cbce46a6c0830f4431267af58e8758c458b8691a079da2c412d54

Next Steps:

Would members of Shutter DAO 0x36 ( especially those who commented and/or voted against this proposal - @d0z3y @franklivid @Lanski ) please share some ideas and/or suggest some next steps?

A few questions to get help focus the conversation:

  • Do you see value in getting SHU listed on a CEX?
  • If so ā€¦ (a) Which CEXs would you like to prioritise? (b) Are you willing to pay for listing? And how much?
8

I do see long term value in listing on a CEX. However in the short term I would focus on building the community (X followers and discord members), building DEX transaction volume and also greater awareness from production implementations. These will all drive demand, support the price and then importantly a CEX will be much more inclined to list SHU if they see the potential for transaction fees. Possibly without the need for a listing fee.

I donā€™t see any short term benefit listing SHU on a lower tier CEX alongside hundreds of meme coins. I would rather the $50k be spent on conferences, marketing etc.

Having said that, if someone can provide examples of comparable early stage (infrastructure!) projects, with similar levels of adoption that received a sustained boost from a CEX listing, then I would change my mind.

Regarding which exchange - I donā€™t really have an opinion as I only really use tier 1 and DEX. I have previously used gate.io for lesser known tokens however I am geoblocked now and so just use DEX.

1 Like
9

I 100% think $shu should list on a good CEX in all perspective. Because the token price looks ugly now. Listing on CEX will help this especially if artis can do more work on CEX. For piorities, BN, OKX,Coinbase definitly will be tier0 but they only list the token which have good trading volume, hot on the market(narratives) or potentially bring more user to them. So $SHU can not make any of this especially the trading volume and big drop of token price. This is what community need to work on and make the token price back to the positive circle and wait MEV be more popular or make MEV narattives more popular. After this, gate or other CEX with liquidity and real user will good choice.The name on my mind is gate and bybit now.Upbit and korea CEX is good too but they only list the token on bn okx and CB now. To answer @d0z3y, I agree to do marketing, building, community and so on is important. But the fact is that if the ā€˜teamā€™ do not care about the token price then user will not care because they have to many token could buy? Why they buy yours. If more people do not hold ur token they do not care what u do and how u do. So if the ā€œteamā€ do not make the token price back to the positive circle it will just fall. And I do not think only do hackhouse and conference marketing will simply solve the problem. As a early investor, I really want to see the change. I been the industry for quit long time. I saw too many good tech team with good product fail because they do not do token management or done it bad. Shutter build a really good product, I hope we all can make it.

10

I basically agree with this except for the part about the team making the token price go up. How do they do this other than by continuing to build and pushing for adoption?

Also any changes to tokenomics or the use of DAO funds need to be approved by the DAO and cannot unilaterally be done by the team. There havenā€™t been any proposals to that affect other than the recent unknown exchange payment.

Also, what makes people think that the team donā€™t care about the price? They are just as invested / dependant on the token as investors, if not more so?

11

Hi, listing on a CEX is a must. There are various ways to list on a CEX, and this should not be a cost to the DAO itself, however it also requires knowledge to do it. I would suggest that Artis does a crowdfunding, like Alephium did for example, to list on MEXC or GATE. Whatever people say, we have an example of a grassroots project that did this and it generated a real amount of huge volume among users and it was extremely succesful. Maybe do a temp check for that.