Market Making AJNA on CeFi and DeFi

Grant Proposals
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Market making AJNA on CeFi and DeFi

Recieving Address: 0x6dF8f05E25Ae31F2ef38EC7c7b4323b61Af403db
AJNA Amount: 2,000,000

Applicant and Team Information

Applicant Name: Prycto
Email: info@prycto.com
About you and/or the team:
Market making on DEXs since 2017, Prycto is the first automated trader in the DeFi space, Prycto specializes in transparency, providing live dashboards with trading results, and helping partners get the insights out of the Data.
Prycto have been working with some of the most notable projects in DeFi over the years, including MakerDAO, Kyber Network, dYdX, SNX, and many others.
Additional Links: Prycto.com

Project Information

  1. What is it?
    Helping $AJNA get listed and traded on CEXs and DEXs.
    Prycto will market make $AJNA, to make sure there’s deep liquidity with tight spreads, so traders can get competitive pricing if trading on a CEX or on DeFi.

  2. What problem is being solved, how?
    The problem being solved is a mismatch between buyers and sellers in both time and trading venue, one trader wants to buy on Coinbase at 13:00 while another trader wants to sell on binance at 13:03.
    Without a market maker, both buyer and seller will get a large slippage for their trades, making them less likely to trade to begin with.
    By having a dedicated market maker that is constantly quoting on both exchanges, both traders would trade with the market maker, which will hold a position derived from multiple exchanges and over time, resulting in reduced volatility, a more reliable and predictable price for traders, and higher volumes.
    If a trader sees he’s gonna get a large slippage getting in and out of a position, the trade makes less sense and might not happen, as cost of execution gets lower, more trades can make sense and are more likely to take place.
    Prycto will solve it by constantly quoting (limit orders) on both sides of the orderbook on major centralized exchanges, as well as DeFi through concentrated liquidity on UniswapV3.

  3. How will this project be a source of growth or success for Ajna? Please include a step-by-step summary of how you imagine the completed project will affect Ajna.
    As liquidity improves and volumes grow, more parties will get confidence in the value of $AJNA, $AJNA incentives will get more valuable, and more institutions such as funds, degens, traders and yield farmers will consider allocations for $AJNA.

  4. What is/are the objective(s)?
    Improving depth and spreads for $AJNA tokens, improving trading conditions for all market participants.

  5. What is/are the deliverable(s)?
    An SLA of $6,700 worth of orders on both sides of the books on each of the supported exchanges within 100 BPS of the price for a minimum of 95% of the time for 12 months.
    A live dashboard will be provided to the community detailing the volumes, market share and spreads.

  6. What is the timeline for completing the deliverables?
    Liquidity will be up on day 1, it is critical for CEXs listings to have liquidity setup ready when listing, and we’re relying on the tech stack that Prycto have been building for the past 7 years, so the deliverables will be completed immediately.
    Dashboards will be provided within a week after first CEX listing.

  7. What level of support do you anticipate needing through the duration of the project?
    Prycto will require no support from the rest of Ajna community.

  8. How often will progress reports be published to the forum?
    Reporting will be through a real-time live dashboard, as well as a monthly in depth report with insights resulting from the data.

  9. What are the estimated costs associated with the full completion of this project?
    The costs are 2M $Ajna tokens which will be deployed in order books.

  10. If applicable, How will the project be maintained after completion of the grant?
    Not-applicable

Additional Information

  1. How will you handle a delay in your project timeline?
    Prycto Tech stack is already built, such listings and market making projects are being done by us on a regular basis and no delay is expected.

  2. How will you handle a scenario where the project can’t be completed due to insufficient funding or other factors?
    The funds are being used solely and entirely for deployment in the markets, no additional dev work is needed for the project, so such a scenario is irrelevant.

  3. How will you handle a scenario where the project is completed, but significantly under-budget?
    The funds are being deployed in the markets, without any additional dev work needed, and thus no surplus is expected.

The Prycto team are grateful for your consideration of our proposal :pray:

3 Likes
2

Just checked your website.
There is a 404 when you click on the OTC API.

1 Like
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Will look into it ser, thanks for letting us know :pray:

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With the PMM proposal from Prototech looking quite attractive for facilitating some UNIv2 DEX liquidity on mainnet, I wonder if it would make sense to shift any granted amount more towards the CEX pairs or if the community would rather fund even deeper liquidity on UNI, leaving this proposal as-is.

Either way, can always change the priority via future proposals so it’s not an urgent matter. Deeper liquidity is a win for AJNA holders and potential buyers so I’m in favor of supporting this proposal as-is.

1 Like
5

Would like to see a list of exchanges you plan on supporting with this proposal. Thus far appears only Uni-V3, would you also consider Uni-V2?

2 Likes
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We generally aren’t planning on UniV2 because of concerns regarding capital efficiency.
In terms of exchanges we will support, it’s all of the major ones, however we are of course limited to the ones who will list AJNA.
So the usual suspects, Binance, Coinbase, OKX, ByBit, Gate etc.

2 Likes