Summary

Wintermute is requesting a loan of 700k INST/FLUID tokens from the DAO’s Treasury to provide liquidity across various decentralised and centralised exchanges. The 700k INST/FLUID tokens will be transferred from the DAO Treasury to the Instadapp Team’s multisig and then transferred to Wintermute’s wallet.

Context

The recently published “Rebranding and Growth Plan for Fluid Protocol” proposal outlined various goals, growth plans, and a vision for Fluid Protocol. To achieve these goals, the Instadapp/Fluid Team outlined a strategic allocation using 12% of the DAO’s Treasury Funds which included a 2% allocation to Market Making initiatives.

Currently, the only way to acquire a sizeable amount of INST is through decentralised channels which at times has had insufficient liquidity due to the increased demand for the token. While the Instadapp/Fluid Team has been working to improve this situation, only having decentralised channels to acquire INST/FLUID makes it inaccessible to a lot of users and institutions.

Through our partnership, we aim to make INST/FLUID more accessible to gas-sensitive users, institutions, high-net-worth individuals, and potential investors through centralised and decentralised channels.

Proposal

Wintermute’s Basic Background:

Wintermute Trading is a leading crypto-native algorithmic trading firm, specialising in creating efficient markets across centralised and decentralised exchanges. Wintermute was founded in July 2017 by three Optiver veterans. Evgeny Gaevoy, founder and CEO, was previously head of ETFs (screen and OTC) at Optiver Europe, one of the largest ETF market-making desks. Since our inception, we have traded over $5.4T USD in volume and expanded our presence across 80+ (de)centralised exchanges and various (non)EVM chains, continuously supporting the ecosystem for our partners and their communities.

Alongside our trading arm, Wintermute Ventures and Wintermute Governance support and work with leading crypto projects with the goal of truly adding value, enabling partnerships, and helping shape a positive outcome for the ecosystem. Importantly, we do not target large ownership stakes; decentralised ownership is an important prerequisite to transitioning to a robust future.

Specification

Our Ask:

Wintermute is requesting a loan of 700k INST/FLUID for 1 year from the InstadappDAO Treasury for liquidity provision purposes.

Wintermute’s INST/FLUID Loan Plans:

• Proactively guide discussions and support listings of INST/FLUID on key exchanges on day one and going forward.
• Provide liquid markets across major centralised exchanges (once listed).
• Provide liquidity across DeFi aggregators such as CoW Swap, UniswapX, 1inch, Bebop, Airswap, and Hashflow.
• Be the go-to liquidity provider for any OTC & Institutional flow, providing competitive prices for tickets $100k+.
• Borrowed INST/FLUID will be used exclusively for liquidity provision purposes. No farming, lending, governance, etc.

Loan Return:

Wintermute Trading will return the full 700k INST/FLUID loan amount at the end of the 1-year loan term to the Instadapp Team’s multisig OR exercise the repayment option below.

Repayment Option:

The repayment option allows Wintermute Trading to purchase INST/FLUID from the loan amount on the respective loan expiry date at the strike prices specified below.

Loan Strike Prices: 700k INST/FLUID @ $10

Should Wintermute Trading choose to exercise our repayment option, the value of the loan at the strike price will be returned to the Instadapp Team’s multisig in the form of USDT or USDC assuming a USDC/USDT price of $1.

Implementation Plan

Assuming the Rebranding and Growth Plan for Fluid Protocol proposal is successful and the Instadapp Team receives funds from the DAO Treasury as outlined in the proposal. The Instadapp Team will then facilitate the transfer of 700k INST/FLUID from the Team’s multisig to Wintermute, pending approval of this proposal.