SPS Governance Proposal - Contract Market Maker for Crypto.com
Community Proposal #7
This proposal is to hire Flowdesk to provide Market Making services for the SPS token. After the previous proposal failed and then collecting more feedback from the community, option 1 in the term sheet below was chosen to bring forward as a new proposal:
If this proposal passes the SPS DAO will contract Flowdesk to provide market making services for the SPS:USD trading pair on Crypto.com. The SPS DAO will provide 20,000 USDT and $20,000 worth of SPS for trading liquidity, scheduled to be returned upon contract completion, as well as allocate $42,000 of USDT for 12 months of service fees.
Author Notes
I have been gathering feedback on this topic since it became clear the last proposal would fail. While the last proposal was ongoing I was contacted by HTX (Huobi) and informed that we are scheduled to be delisted. After sharing this information it seems that more people are concerned with keeping at least 1 centralized exchange listing alive so we are trying this proposal.
I was able to do a Twitter Space with Flowdesk to address many of the concerns from the last proposal that you can hear at the link below. You may have to have a Twitter/X account to access it:
https://twitter.com/TheSPSDAO/status/1724818403582763078
Hey what is the difference in cost between this and a current LP?
edit. another question. How do we buy on MCO and send directly to game? i.e hive directly to binance etc.
Related to 1. this are our current LPs or we have more?
1.5M SPS / Month - SPS-BNB Pool on PancakeSwap (BSC)
1.5M SPS / Month - SPS-ETH Pool on SushiSwap (Ethereum)
1.5M SPS / Month - SPS-HIVE Pool on Hive Engine (Hive)
750k SPS / Month - SPS-DEC Pool on Hive Engine (Hive)
https://peakd.com/sps/@clayboyn/sps-dao-lps-an-exploratory-post
This may be a little cheaper, but the difference is that LP rewards go back to actual players/investors in the game. Whereas this $42K fee goes straight into crypto.com pocket and exits the SL ecosystem forever.
Thank you for participating in SPS DAO Governance @clayboyn!
You can place or monitor SPS Stake Weighted votes for and against this proposal at the link below:
Link to this Pre-Proposal
Updated At: 2023-12-07 21:14 UTC
Hey, thanks for the initiative, as always. I have a couple questions:
1-Does it make sense to spend $42K on curating a $40K pool for a year? How much volume do you expect from it and that will mean any revenue? It's hard for me to understand why to pay $42,000 USD for a Pair...
2-Related to 1: Will not be better to live in DEXes like Sushi / Cake and (whatever the good one is in Solana)? Cheaper? Reaching more people?
Sorry if this kind of questions were answered before. ty again
This is an outright expense. We are not going to make money on this. It's simply to help boost liquidity on the exchange so that people can actively trade and raise the volume and help us avoid being delisted.
I did a detailed breakdown on this topic on a previous post here:
https://peakd.com/sps/@clayboyn/a-discussion-about-sps-exchanges-and-market-makers
Thanks a lot! You make a great job man
I agree... not worth it. The big winner of this proposal is the exchange, which is guaranteed to profit $42K.
If you're going to burn that much money, I'd rather you buy $42K worth of SPS and just burn it all immediately.
As far as onramp or offramp for SPS... it can be achieved with the HIVE token on an exchange and converting to/from SPS on the hive blockchain.
Tbh, I have no clue what this means. I gues I wait for more comments explaining this before voting.
Agree. This proposal seems focused to more technical sps stakers, i would think a proposal should have more details, explanations, and so on... specially if this goes to vote for everyone, not just technical users. For now i voted No.
I previously broke this down and went very in depth on the topic here:
https://peakd.com/sps/@clayboyn/a-discussion-about-sps-exchanges-and-market-makers
Thanks. I don´t know how this really works, and i like to vote with info.
I've wrote a pretty in depth post about what it all means if you'd like to check it out here:
https://peakd.com/sps/@clayboyn/a-discussion-about-sps-exchanges-and-market-makers
i have no clue what it all means but i have an account on coinbase and i'd rather not make a new account. So would it be possible to change that crypto.com to coinbase?
i do support the proposal because it seems easier to use for beginners
We can't pay for market making services on an exchange we aren't listed on.
What is the benefit of this? How much volume does SPS do currently on crypto.com? What would be gained from this listing? I find in so many projects, people focus on the need for a CEX. If there is no direct withdrawal to hive from crypto.com to make onboarding easier, I don't see the point really.
The benefit is that it would boost liquidity on the exchange to make easier on/off ramps for SPS. More liquidity and volume on the exchange is what would be gained.
I kind of sense a disrespect regarding community wishes with these repeated failed proposals coming back to be voted again. Soon we will be voting again for Rebbelion Packs in chests (but if you can't remember, NOT PUTTING those in chests PASSED, meaning packs should be on chests and not being voted again).
Feeling like from now on, every time the community chooses something the DAO does not want, they will just create the same proposal again until the proposal pass in the way they want to.
Sorry but this has being frustrating for me to follow, and despite the good intentions on this one, I'll keep my No. In fact, in the same detailed post you mentioned below:
"https://peakd.com/sps/@clayboyn/a-discussion-about-sps-exchanges-and-market-makers"
The points made by user bitcoinflood were great, and I guess he's right.
Listing is too expensive, with fewer benefits then using the money to make the game better.
Me running these proposals does not indicate my support for them. If you read what I wrote on that post I linked you'll probably be able to deduce my sentiment on the whole situation. It's a job. I try to educate and help everyone make their best informed decision.
You can read the discussion that led to the creation of this proposal in the Community Discord if you have a registered account at the link below and see that it had significant support to run a second proposal. Currently we are discussing how to handle another Rebellion Packs in chest proposal as well. If there's some indicator we have reached a compromise or consensus I'll run another proposal for that.
https://discord.com/channels/447924793048825866/1175328200323252294
I voted for this as a compromise to those that felt it was important to keep a centralized exchange. I hope I'm proven wrong and this gives us some marketing benefit. I will be asking @fatjimmy and @azircon to evaluate this honestly in the future (since they both felt it was important). Spending $42k is not huge, but we should always consider whether we are using any money wisely or not.
I hope that others in the future also recognize the importance of compromise on other proposals. I certainly don't like this whole model, but I voted for it out of respect for others that do.
Appreciated Dave. Just wanted some presence at some exchange.
Hello All, over all exerience with gate.io is not good. just sharing own experience.
I dont see why not. this is a good time to do it
In my opinion, the proposal is worth considering, but it is important to make sure that the terms of the contract are in the best interests of the SPS DAO. For example, the contract should include a clause that allows the DAO to terminate the contract if Flowdesk does not meet its performance obligations.
It is also important to note that this proposal is not a long-term solution. The SPS DAO should continue to work on developing decentralized markets for the SPS token. This will help to reduce the reliance on centralized exchanges and make the SPS token more accessible to a wider range of users.
Here are some of the pros and cons of the proposal:
Pros:
Flowdesk is a well-respected market maker with a good track record.
The proposal would provide much-needed liquidity to the SPS market.
Keeping at least one centralized exchange listing alive would help to increase the visibility and accessibility of the SPS token.
Cons:
The proposal is expensive.
There is no guarantee that the proposal will be successful in preventing Huobi from delisting SPS.
Some members of the community are concerned about the centralization of market making services.
With Amazon recently supporting GodsUnchained, now Splinterlands could also use some more global visibility in this bullish cryptospace. Step in the right direction. Speculative benefit outweighs any reasonable initial marketing cost.
Hello Clayboyn! What about funds of Proposal Allocate up to 30 million SPS to pursue exchange listings#25? Are those funds just gone or somewhere in teams pockets?
They were not enough to get a top tier exchange listing as the price of SPS declined. It had nothing to do with the "the team" so no. If the price of SPS rises or more funds are allocated they'll be used to pursue a tier 1 exchange listing. The proposal also expires in March.
Not the exchange I wanted... But I think the values are fair and we should keep at least one CEX listing. For those reasons, this time I will vote yes.
This is clearly being voted yes by large holders of SPS as how does this benefit anyone who has never touched $3,500.... There is nowhere in the world right now were an economy is close to "booming." The whales control the crypto market to MAKE MORE MONEY because we live in a very dark and greedy nasty world.
How about Splinterlands finally does something with DEC-B that I still own but cannot touch as I have not heard any news about when I will be able to access something I invested in.
I just don't see the value in keeping this listing open on CDC. I've had miserable experiences the two times I did try to use CDC, so maybe I'm a bit biased here. I also have the knowledge to take advantage of pancakeswap on the BNB smart chain, which provides me a superior experience (although I'm not a big trader so the limited liquidity issues of the DEX's LP is no issue to me). I think it might be helpful for the SPS DAO to have an OTC desk of sorts to help facilitate large OTC orders that might come in from investors. Otherwise, I see the exchange listing as a place for people to dump, not for newbies to acquire tokens.
IT doesnt support NY is there a way to make a account option that can create accounts for ppl so they dont need to kyc I am trying to just fake it by getting a fake id online and making it not ny lol but its a pain.
Might want to take a look at https://coinalpha.com/ for market making services.