Strategic cooperation with DWF Labs

Proposals
1

Summary

We propose to join in cooperation with DWF Labs in order to boost liquidity and trading volumes on SushiV3 and improve the SUSHI token’s liquidity on major exchanges. Considering DWF Labs skills and experience in market making in liquidity provision, the cooperation should bring a lot of benefits to SUSHI tokens, such as improved liquidity and spread on Binance and OKX, and trading activity on SushiV3, which could bring more users and LPs.

Abstract

Cooperate with DWF Labs in order to make SushiV3 and SUSHI token more liquid and traded

DWF Labs
DWF Labs is a large prop HFT shop, global digital asset market maker and multi-stage web3 investment firm

Motivation
We believe that we can bring a lot of value to Sushi ecosystem and be long term partners.

DeFi market is super competitive nowadays and we have capability and experience in liquidity provision and active trading on DEXes. Our intention is to make SushiV3 more liquid and actively traded, which allows LPs to collect more fees and traders have a minimum slippage.

SUSHI token will have almost doubled depth within 2% around the spread on the major exchanges and we can provide active market making models in order to support the SUSHI markets nicely.

Specification

SushiV3 support
Liquidity provision

  • DWF Labs commits to add at least 1.6m$ liquidity to pairs:
    • WETH/USDT
    • WETH/USDC
    • LDO/WETH
    • LINK/WETH
    • SUSHI/WETH
    • WBTC/WETH
    • BLUR/WETH
    • MATIC/WETH
    • SNX/WETH
    • COMP/WETH

Trading activities

  • DWF Labs commits to reach the following market share (DWF Labs trading volume VS SushiV3 trading volume)
    • 3% within 3 months
    • 6% within 6 months
    • 10% within 9 months

DWF Labs will implement its proprietary trading logic, which performs quantitative AI based short and middle term trading strategies on decentralised exchanges.

Market making support for SUSHI token
Added market depth (±2%):
Binance USDT and BUSD pairs: 100k$
OKX USDT pair: 75k$

Resources for DWF Labs
Loan of 2M SUSHI tokens for market making
Maturity 24 months
DWF Labs pays 5% annualized yield, paid every 4 weeks in USDT to SUSHI Treasury

Inventive for DWF Labs
Call option Type: European (can be exercised only in the end of the agreement)
Strike prices (⅓ of the loan each one)
Strike price 1: 125% of a spot price on a day of receiving the loan
Strike price 2: 175% of a spot price on a day of receiving the loan
Strike price 3: 200% of a spot price on a day of receiving the loan

5 Likes
2

Hey @ag_dwf thanks for the proposal

what legal protection would the DAO have when recovering the loan of SUSHI tokens? To be quite honest I’m pretty sceptical given DWF’s recent actions framing OTCs as ‘partnerships’ with the token’s price dumping shortly after DWF deposits to exchanges and more generally your history pre-DWF

For more context:
twitter(.com)/nay_gmy/status/1645426204114305027
(www).theblock.co/amp/post/225705/dwf-labs-biggest-crypto-investors
(www).coindesk.com/business/2023/04/14/market-maker-dwf-labs-more-than-200m-in-deals-blur-what-investing-means/

How do you plan to calculate the spot price and at what timestamp? preferably before you receive the tokens because we all know what comes next

(forum doesn’t let me post links)

1 Like
3

Hey!

We would sign proper coin loan and MM agreements with the DAO’s legal entity.
Regarding the spot price, it would be 24h TWAP

1 Like
4

Hey SUSHI people! Let’s move to xSushi quorum voting?!)

  • Yes, let’s vote and see what the community wants
  • No

0 voters

174 Likes
5

Would love to see SushiV3 has DWF Labs support, bring in more liquidity flow!

1 Like
6

320 votes seems suspect to me for a first time post so I suspect this is not being considered.

1 Like
7

It’s been botted, will take care of it in a bit

8

If this is beneficial to sushiswap, I am sure you can reach a similar agreement with a trading firm that doesn’t have a shady past.

1 Like
9