[PROPOSAL] CEX Market Making partnership - Skynet trading

[c2yptic]

Summary

This proposal is for the approval of Skynet Trading to act as official SBR market maker.

Read on Skynet Trading here: https://skynettrading.com/

• Loan SkyNet trading 100M SBR for market making purposes on CEXs.
• Authorize Skynet Trading as an official SBR market-maker.
• Skynet Trading will commit to providing SBR liquidity on the following platforms: Kraken, Gate.

More trading venues might be added when new listings of SBR occur. Coverage for new exchanges is upon Skynet Trading’s suggestions and the DAO management's approval.

Skynet Trading agrees to either return the full 100M SBR of the loan amount at the end of the 12 month contract period, OR exercise the option to purchase the SBR token amount specified below on the respective option expiry date.

TWAP based strike price in tranches of 1/2 of the token loan amount.

Should Skynet Trading choose to (partially) exercise their SBR option, the loan balance will be returned to the Saber treasury in the form of USDT.

Motivation

Currently, the liquidity for SBR is very low, causing hefty volatility upon bigger buys and sells, making it difficult for people of larger sizes to get onboard the SaberDAO mission.

The volatility also causes greatly volatility APY% in from the liquidity mining emissions in the Saber Gauges, making it difficult for liquidity providers to evaluate longer term impacts on their liquidity provision strategies.

Actions

Skynet trading would loan 100M SBR tokens for a 12M period.

Skynet will provide MM on 2 CEXs. (gate.io and Kraken)

Skynet Trading agrees to either return the full 100M SBR of the loan amount at the end of the 12 month contract period, OR exercise the option to purchase the SBR token amount specified below on the respective option expiry date.

Tokens would be emitted from the SaberDAO treasury.

Upon passing the proposal; 100M SBR tokens will be issued to SaberDAO Ops multisig wallet: C8vvHyFKiuAqdugpVtrALV8iS1smPsb4NzPrpNjP5Qpn

SaberDAO management contributors will issue the SBR tokens from the DaberDAO Ops Multisig Wallet, once the contract have been signed with Skynet Trading.