[Proposal] Caladan Liquidity Provisioning + Collaboration

Introduction to Caladan

Founded in 2017, Caladan is at the cutting edge of technology-driven trading, pioneering quantitative trading strategies on the blockchain. Operating algorithms 24/7 on a global network of trading servers, our expertise encompasses over 65 exchanges (both centralized and decentralized), managing more than $2 billion in daily trading volume with a team of 80 professionals worldwide. We work with dozens of counterparties on a daily basis, and have developed a substantial portfolio of investments and market making clients.

Proposal Overview

Caladan aims to continue to leverage its market-making expertise and technology infrastructure to enhance the liquidity and market presence of API3’s native token across key exchanges. This proposal outlines a strategy that ensures Caladan is aligned with API3’s specific needs in the future (excluding support of CEXs on American exchanges). Combined with Caladan’s investment in API3 via the private token sale, Caladan aims to use this proposal to continue to align itself with API3.

Loan and Repayment Terms

  • Loans: 500,000 additional API3 tokens, loaned by API3 to Caladan for the 24-month duration following this proposal’s execution, should it pass. This loan would supersede the existing agreement Caladan has in place with API3, and the terms of that loan would be updated to these terms.

  • Repayment Options: Upon the conclusion of the term, Caladan has the option to repay the loan in either the original amount of loaned tokens (1,000,000 total API3 tokens) or in an amount of USDC based on the following structured tiers:

    • ⅓ of the token loan is repayable at 7-day TWAP (calculated beginning on commencement date) + 50%
    • ⅓ of the token loan is repayable at 7-day TWAP + 100%
    • ⅓ of the token loan is repayable at 7-day TWAP + 150%

Benefits to API3

Continued partnership with Caladan offers API3:

  • Enhanced liquidity and market presence, facilitating easier access for users
  • Continued alignment with API3 via newly structured strike prices far from the current price and investment in API3
  • General ecosystem support via portfolio company introductions, service provider introductions, and potential client introductions (already in progress)


Caladan’s proposal presents a comprehensive strategy to support API3’s growth and adoption in the DeFi ecosystem. Through strategic loans, targeted market-making activities, and ecosystem support, we aim to enhance API3’s liquidity, utility, and industry position. A “FOR” vote would help set up the Loan and repayment outlined in the “Loan and Repayment Terms” section above. An “AGAINST” vote would prevent the proposal from going through. We invite the API3 community to consider this proposal as a testament to our commitment to fostering innovation and growth in the DeFi space.


As I hinted at here, this proposal represents part of the effort to have our market makers become strategically aligned long term partners for our project.

The practical benefit of the proposed loan extension is that it cancels a 500k API3 loan expiry event coming in July (that’s close to being in the money with a $3.5/API3 strike) and increases the strikes to est. $4.8, $6.4 and $8, respectively. It also deepens our partnership with Caladan for the purposes of pursuing ecosystem activities that support our business development functions.

So all in all, I’m in support.