DWF Labs Liquidity Enhancement Proposal

  1. Abstract

DWF Labs aims to support bold founders across Web3. After working for 3 months with API3, the builders’ vision, commitment, and initiatives strongly align with our values, and we would love to work even more closely with API3.

About DWF Labs

DWF Labs is the new generation Web3 investor and market maker, one of the world’s largest high-frequency cryptocurrency trading entities, which trades spot and derivatives markets on over 60 top exchanges.

DWF Labs has already successfully partnered with the DAO previously to help grow and support the API3 ecosystem and improve $API3 off-chain liquidity, which can be found here: DWF Labs Ecosystem Support and Market Making Proposal. After the start of our partnership, we’ve become even more confident on API3’s future development, and thus would love to extend our support to the API3 ecosystem.

To further prove our commitment to the ecosystem, currently we have an ongoing proposal to lead the next strategic treasury diversification round. More details can be found here: Strategic treasury diversification round.

  1. Summary and Objectives

DWF Labs excels in dynamic prop trading, employing varied strategies in both CeFi and DeFi, including liquidity provisioning in DEXs and CEXs, cross-venue arbitrage, and HFT. Both DWF Labs and our venture arm oversee a broad portfolio that includes DeFi, gaming/NFTs, infrastructure, consumer applications, and RWAs.

Hence, DWF Labs would like to work even more closely with the DAO to further assist in its liquidity, minimising costs in onboarding new DAO participants and contributors.

  1. Specification For Strategic Partnership

​​Enhancing API3 Token Liquidity:

Utilising DWF Labs’ market-making expertise, DWF Labs aims to increase the liquidity of API3’s native token across multiple exchanges on different CEXs it is listed on (excluding those serving American users). The API3 loan will be 1,000,000 Tokens with a period of 24 months and DWF Labs will be providing a 6% annualised interest payable every 4 weeks with USDC tokens on Ethereum mainnet.

European Call options (expires at end of term):

· 33% of loaned tokens at a strike price of $5

· 33% of loaned tokens at a strike price of $6

· 33% of loaned tokens at a strike price of $7.5

API3 DAO Vote

A “FOR” vote would help set up an API3 Ecosystem support and loan + call options defined in the Specification section above. A “AGAINST” vote would prevent the proposal from going through.

4 Likes

Besides further deepening our CEX liquidity, the loan comes with good strikes that are proportional to the previous proposal in terms of spot+margin, and doubles the interest paid on the loan from the original loan’s 3% to 6%, which will reflect positively on the amount of API3 burned.

I’m in favor.

3 Likes

I put this proposal up but mistakenly as a secondary proposal - as the secondary agent has no API3 tokens this should be ignored, it will need to be resubmitted as a primary