Proposal Summary
If this proposal were to pass, the ssv.network DAO Multi-Sig Committee (“MC”) will make available to the SSV Foundation (“Foundation”) 250,000 SSV from the SSV currently in the DAO Treasury, so the Foundation can introduce one additional market maker.
Motivation
Under [DIP-20] SSV Foundation Market-Making Service Agreements (hereinafter: DIP-20), the DAO minted 100,000 SSV to be loaned to at least two market makers across multiple venues. [DIP-48] SSV Foundation Market-Making Service Agreements – Continuation of DIP-20 (hereinafter: DIP-48) added an additional 200,000 SSV and reduced market makers from two to one.
Since then, liquidity conditions for the SSV token have deteriorated, with fragmented market liquidity currently creating challenges with thinner order book depth, higher slippage, low trading volume, and single-provider dependency; a single-provider structure is no longer suitable.
A two-provider structure addresses this by quoting in parallel, maintaining liquidity when one is unavailable, extending coverage across a wider set of venues and pairs, and introducing competition on spread and uptime between the two maker makers.
Proposal Particulars
- Proposal Summary
- Motivation
- Proposal Particulars
- Mechanics
- Funding
- Operational Provisions
Mechanics
If this proposal passes, the Foundation will negotiate with top-tier market makers and enter into a twelve (12) to eighteen (18) month commercial loan agreement with a second market maker to manage 250,000 SSV.
The Foundation shall seek the best commercial terms and options agreement, taking into consideration the following:
- Provision of liquidity on multiple venues and multiple pairs
- The best competitive market spread
- The best commercial option and uptime
The Foundation shall inform the DAO, on the governance forum, of the selected market maker, the final conditions of the agreement to the extent their publication is permitted, and the date on which the term begins, within 30 days of execution.
At the expiry of the agreement, depending on the option agreed upon, the remaining SSV tokens or USDC received shall be returned to the DAO treasury within 30 days.
Funding
The 250,000 SSV shall be sourced from SSV tokens already held in the DAO treasury. No SSV is minted for the purpose of this proposal, consistent with the cessation of Market Minting under [DIP-52] SSV Network Asset Management Policy.
Operational Provisions
The DAO Multi-Sig Committee (MC) shall transfer 250,000 SSV from the DAO treasury to the SSV Foundation in the next Scheduled Batch following the passing of this proposal.
The Foundation shall inform the DAO, on the governance forum, of the selected market maker, the final conditions of the agreement to the extent their publication is permitted, and the date on which the term begins, within 30 days of execution.
For the avoidance of doubt, the mechanics, selection criteria, SLA, governance, oversight, and restrictions approved in DIP-20 and DIP-48 remain in full force and effect, and the 300,000 SSV allocated under DIP-48 is unaffected by this proposal.