Background
Shutter DAO 0x36 provided a grant to Artis to provide post-LBP market making services in February 2024:
- Shutter Forum: https://shutternetwork.discourse.group/t/provide-a-grant-to-artis-for-post-lbp-market-making-services-for-shu-token-for-six-months/220 - Snapshot: https://snapshot.box/#/s:shutterdao0x36.eth/proposal/0x3a0396a8e018250455d600c31f3e6e26161b8dca9338a6fd477d408503b185a5
Shutter DAO 0x36 concluded its relationship with Artis in late December 2024:
- Shutter Forum: https://shutternetwork.discourse.group/t/conclude-grant-to-artis-for-market-making-services/559 - Snapshot: https://snapshot.box/#/s:shutterdao0x36.eth/proposal/0x63571e343cddc8fc6c11228e7fb7aeef77e7cd211fa482d5107d5413d6c213b9
Rationale
A savvy and reliable market maker plays a critical role in ensuring the health and value of governance tokens, including the Shutter Token (SHU).
Shutter Token (SHU) is currently available for trading on decentralized exchanges (DEXs) on Ethereum Mainnet and Gnosis Chain, and on a few minor centralized exchanges (CEXs) which have listed SHU from their own initiative.
Shutter Token (SHU) would benefit from listing(s) on top- and mid-tier centralized exchanges (CEXs) and market making activity on those CEXs. It would particularly benefit from market making activity which is coordinated with Shutter protocol launches and major announcements, and large movements in the broader crypto market.
By issuing an RFP, Shutter DAO 0x36 can attract competitive and qualified candidates who align with our values and technical requirements. This initiative will provide a transparent and efficient process to identify and engage a partner that can bolster Shutter Token (SHU)’s distribution and market performance.
Criteria
Market makers proposals must include:
- Overview: A brief introduction to the individual or organization submitting the proposal, including relevant experience and qualifications.
- Technical Capabilities: Details about the tools, technologies, and algorithms to be deployed for market making activities.
- Liquidity Commitments: A description of liquidity provision strategies, including expected depth and spreads.
- Risk Management: An outline of risk management practices.
- Reporting: Details about reports, and reporting frequency.
- Fee Structure: A transparent breakdown of the proposed compensation model.
- Alignment with Shutter DAO 0x36: Evidence of alignment with Shutter’s mission, values, and decentralized ethos. In addition, willingness to work for a true, decentralized DAO, which requires specific knowledge and capabilities.
- References: At least two references from relevant previous engagements.
Instructions
Market makers must submit proposals as follows:
- Submit a proposal as a post on the Shutter Forum DAO Proposals category with the title: “Market Maker RFP Submission - [Your Name/Organization].”
- Include contact information.
- Proposals will be accepted until end-of-day 7 February 2025. Late submissions will not be considered.
Evaluation
Shutter DAO 0x36 will evaluate the Market maker proposals as follows:
- Shutter DAO 0x36 members will be able to comment on and ask questions regarding proposals in the Shutter Forum (now to 2 March 2025).
- Shutter DAO 0x36 will host one or more Governance Calls, giving all Market Makers the opportunity to pitch their proposal to and answer questions from Shutter DAO 0x36 members (likely the week of 10-14 February 2025).
- Shutter DAO 0x36 will consider a proposal to select one (or none) of the proposals via a Snapshot vote (voting likely the week of 24 February - 2 March 2025).
Platform
Snapshot (If passed, this proposal will not trigger an on-chain transaction.)
Voting Options
Vote “FOR” to if support Initiating a Request for Proposals (RFP) aimed at selecting a new market maker
OR
Vote “AGAINST” if you do not support this proposal
OR
Vote “ABSTAIN” if you do not have an opinion but want to help the vote reach quorum