Market Maker RFP Submission - Mikael Olofsson / Daler Trading

Shutter DAO DAO Proposals
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MO ( CET time zone ), [3 Feb 2025 at 13:55:34]:

Market-Making Proposal for Shutter DAO by Daler Trading

Daler Trading is a well-established market maker with deep experience in both traditional finance and digital assets, specializing in spot and derivatives markets across CEX and DeFi platforms. Our core mission is to enhance liquidity and drive sustained growth within the digital asset ecosystem.

We are submitting this proposal to Shutter DAO with the objective of providing comprehensive market-making and advisory support for SHU (Shutter token) on both CEX and DEX platforms. Leveraging our extensive network and knowledge of the crypto market, we are confident in our ability to facilitate a smooth token deployment and drive SHU’s liquidity and market growth.

Proposal Overview: 3-Month Initial Term

Launch CEX & DEX Strategy

Our goal is to increase liquidity and trading volume for SHU across both DEX and CEX platforms. The proposed strategy includes the following:

  • Uniswap V3 to V4 Strategy: Initially, we will focus on boosting liquidity and trading volume on Uniswap V3, followed by transitioning to Uniswap V4 to further enhance liquidity and trading efficiency.

  • CEX Listings: While CEX listings are crucial, we will evaluate exchanges carefully based on a cost-benefit analysis, considering both listing fees and strategic value. At this stage, we will avoid committing to specific CEXs but will focus on identifying exchanges that provide the greatest long-term benefit.

  • Selective Listings: Our approach is to prioritize high-quality CEXs rather than targeting multiple smaller platforms. A few well-chosen exchanges will yield a significantly larger impact on liquidity and market volume compared to spreading resources thin across many exchanges.

Liquidity Requirements

  • CEX Listings: For Tier 2 exchanges, liquidity requirements will range between $25k - $50k in USDT/C and an equivalent amount in SHU.

  • Tier 1 Exchanges: We will consider Tier 1 CEX listings once the first CEX listing is live, along with 3-4 DEX pools, and a total daily trading volume exceeding $5M USD.

  • DEX Pools: For pools such as Uniswap or Aerodrome, a liquidity pool size of 1-3% of market cap will be sufficient to start. These pools will be actively monitored to ensure stability and liquidity growth.

  • DEX Pool Income: Trading fees generated from DEX pools will help further bolster liquidity and improve overall market position.

Key Offerings

  • SHU/USDT Liquidity: Ensuring robust liquidity for SHU across both CEX and DEX platforms.

  • DEX Pool Setup & Management: Creating and managing DEX liquidity pools aligned with CEX liquidity levels.

  • Spreads & Arbitrage: Minimizing price fluctuations and maintaining balanced SHU prices between CEXs and DEXs.

  • DEX & CEX Launch: Providing end-to-end support for SHU token listings, including structured rollout strategies for both centralized and decentralized exchanges.

  • New Listings: Leveraging our network to assist with new CEX listings, DEX setups, and ongoing maintenance.

  • Manual Intervention: Collaborating with the Shutter team to adjust pricing strategies during key market events and news.

Communication & Reporting

  • 24/7 Support: Ongoing communication via Telegram, ensuring real-time support and updates.

  • Regular Updates: Daily updates and weekly reports to keep all stakeholders informed on market activity and progress.

Goals & Targets

  • Liquidity Management: Maintaining spreads within +/-2% as required by exchanges.

  • Arbitrage Control: Ensuring consistent price stability across CEXs and DEXs.

  • Treasury Building: Optimizing trading opportunities to drive SHU growth and strengthen Shutter DAO’s treasury.

  • Strategic Growth Optimization: Long-term focus on optimizing SHU’s growth and stability in the market.

Cost Structure

To support market-making efforts, Shutter DAO will compensate Daler Trading as follows:

  • $1,500/month for the first CEX/DEX pair.

  • $1,000/month for each additional exchange/pair.

  • Once the total reaches $4,500, Daler Trading will accept payment in both SHU and USDC.

Termination Clause

Unless required by regulatory restrictions, either party may terminate this agreement with 30 days’ written notice. However, we are committed to fostering a collaborative and long-term partnership that benefits both Shutter DAO and its community.

Summary

With proven experience in market-making across both traditional finance and crypto markets, Daler Trading offers unparalleled expertise in liquidity management, exchange listings, and token stability. Our tailored approach will ensure SHU’s growth, enhance trading conditions, and maintain strong liquidity, positioning SHU for long-term success.

We look forward to collaborating with Shutter DAO and driving the success and growth of the SHU token.

Daler Trading

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