Protocol
Long Tail Market Making Services
Description
RavenDAO will provide market making services on dYdX v4 long-tail assets through an ongoing monthly agreement with the DEP. The goal for these services is to improve top of book liquidity and spreads for the supported markets.The DEP will provide an initial list of markets to be supported. In addition to these markets, RavenDAO will be asked to support new markets listed through governance. The DEP will inform RavenDAO four days in advance of the market being listed. RavenDAO will be expected to add liquidity within twelve (12) hours of the market being listed on dYdX.
Specifications
Term: 2 Months (renewable monthly following the second month)
Capital: Market makers to provide their own USDC liquidity for the service
Markets to support:
Existing Markets (20): BNB, SHIB, UNI, WLD, APT, SUI, TIA, JUP, JTO, STRK, TRX, SEI, PYTH, FET, DYM, INJ, IMX, BLUR, BONK, ORDI
New Markets (5): To be assigned by DEP.
SLAs
Across all markets:
- Uptime: >= 95%
- Depth Requirements:some text
- Existing Markets:some text
- $2,000 at 5 bps per side
- $5,000 at 25 bps per side
- $15,000 at 50 bps per side
- New Markets (listed through governance, one month following approval):some text
- $2,000 at 10 bps per side
- $5,000 at 25 bps per side
- $10,000 at 50 bps per side
- Existing Markets:some text
Funding
$2,500 per market per month
Monthly totals will be distributed at the end of each month based on markets supported and SLAs accomplished.
Reporting
We expect the market maker to provide their own reporting to assess SLAs. The DEP team will also perform their own assessment of each market supported.
