Market-Making AJNA on CeFi and DeFi

Grant Proposals
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1

Market Making AJNA on CeFi and DeFi

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

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 thereā€™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 heā€™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 weā€™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 canā€™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:

2 Likes
2

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 wonā€™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

3

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.

4

Iā€™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
5

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

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

  2. ā€œLendingā€ market makers an allocation of tokens so that they have an inventory to make a two-sided market

I would think AJNAŹ»s 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.

6

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

1 Like
7

Hey guys and thank you very much for the detailed proposal.

I believe there should be greater liquidity for the AJNA token. With this aligned with Prototechā€™s initiative, Iā€™m excited at the prospsect of additional AJNA liquidity support from multiple ends.

My questions on the scope of this proposal are outlined below:

  1. There isnā€™t a specific period or end date to engaging in these activities, would it be correct to assume the grant amount requested is toward market making in perpetuity? This would also help to uncover why the answer to question 10 (in the proposal) is ā€˜Not-applicableā€™

  2. I am not sure if it fits but it would be great if you could add clarity as to what factors could contribute to dissolving the arrangement or refund of the grant amount. 2a) is there any clarity we can acquire on a target spread across exchanges?

  3. By ā€œas cost of execution gets lowerā€ do you mean that would happen due to lower slippage?

  4. There is an amount of 1,000,000 requested at the beginning of the proposal but a 2M quote at the end. Perhaps 1m is for compensation and 2m is for market-making activities? Please help us clarify the amount Prycto is looking for and also whether listing requirements (fees) need to be considered and will be coming out of this AJNA allocation.

  5. For liquidity thatā€™s provided to Uni v3 could you specify the address that will be managing the liquidity?

1 Like
8

I think the 2m was a copy pasta from their first proposal.