Market-Making AJNA on CeFi and DeFi

Market Making AJNA on CeFi and DeFi

Recieving Address: 0x6dF8f05E25Ae31F2ef38EC7c7b4323b61Af403db
AJNA Amount: 1,000,000

Applicant and Team Information

Applicant Name: Prycto
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:

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)?
    A live dashboard will be provided to the community detailing the volumes, market share and spreads across exchanges, for both the market performance and our trading performance.
  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?

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:

1 Like

Respectfully, paying a person to make money seems strange. Ajna has $16k in liquidity so granting $30k in selling pressure to trade seems like a tough sell. The token won’t be on Binance anytime soon.

The entire economics of the token is liquidating the few users of the protocol. I think this would be better shaped as defi market making or protocol usage.

I hope the delegates or users who have control over the forum choose to engage positively or negatively rather than ghosting everyone except their buddies

Does AJNA have a plan for listing on a CEX? This would be a good signal to the market and increase AJNA liquidity but CEX listings are not cheap.

I’ve been working with Prycto on applying to multiple exchanges. We are in the process of gathering quotes and setting up a deal to get a listing up.

1 Like

The typical CEX listing / market-making arrangement consists of:

  1. Paying a CEX to list a token ~ $20-50k.

  2. “Lending” market makers an allocation of tokens so that they have an inventory to make a two-sided market

I would think AJNAʻs bottleneck would be the first issue and not the second since there are a lot of market-making firms. Adding AJNA to an L2 would also increase their interest as they could conduct CEX-DEX arbitrage.

Definitely needed USD/AJNA market on Ajna to support the number 2. incentive?