Author: coderdan (1484) Duration: 10 days Quorum: 7.2M GHST Google doc: https://docs.google.com/document/d/1ea5ayINGVYJEJIsMFduRgHzzgD_tXd9mXPMALEznRBA/edit?tab=t.0#heading=h.w56bqhbmdux0

Summary

This Core Proposal seeks approval for AavegotchiDAO to engage SkyNet as a professional market maker for GHST on Binance and other top centralized exchanges.

The DAO will allocate:

• 200,000 USDC
• 200,000 USD equivalent of GHST

to SkyNet under their monthly retainer model for a one–year term, with an option to cancel on two weeks notice. The intention is to improve GHST liquidity depth and order book quality on major exchanges without the DAO taking on directional price exposure beyond what it already holds in GHST.

Background and Motivation

Recent changes to GHST’s status on Binance have raised concerns about the long term stability of GHST listings on major centralized exchanges. One of the key factors that exchanges evaluate for listings is liquidity quality, including:

• Order book depth near the mid price
• Tightness and stability of spreads
• Ability to absorb moderate buy and sell flow without excessive slippage

AavegotchiDAO already holds treasury assets earmarked for liquidity initiatives, yet a portion of this capital is currently idle. Rather than leaving these funds unutilized, the DAO can deploy them into a professional, structured market making program to:

• Support deeper, more resilient GHST order books on Binance and other CEXes
• Reduce slippage for both buyers and sellers
• Improve the perceived health and tradability of GHST in the eyes of market participants and exchanges
• Strengthen the long term case for maintaining and expanding CEX listings
• Stimulate organic trading volume through creation of healthier markets

SkyNet is a professional market making firm that operates on a retainer basis. Clients provide capital while SkyNet executes automated, largely delta neutral strategies designed to enhance liquidity and manage risk.

About SkyNet’s Model (High Level)

SkyNet’s offering, as it relates to this proposal, can be summarized as:

• Retainer structure. The DAO pays a fixed monthly retainer of 5000 USDC per month for the service of providing market making on selected exchanges and pairs. All profits (or losses) incurred through trading are borne by the client (AavegotchiDAO).

• Capital provision. The DAO supplies trading capital in both quote (USDC) and base (GHST) assets. SkyNet uses this capital in designated exchange accounts to maintain order books and manage positions.

• Delta neutral orientation. Strategies are designed to be broadly delta neutral, focusing on spreads, volume, and inventory management rather than directional price bets.

• Risk management. SkyNet typically employs hedging and inventory balancing methods in an effort to limit net exposure and reduce the risk of large, unhedged positions.

This proposal focuses specifically on applying that model to GHST markets on Binance and potentially other top tier CEXes where GHST is listed.

Proposal Details

1. Capital Allocation

• 200,000 USDC from AavegotchiDAO treasury
• 200,000 USD equivalent of GHST from AavegotchiDAO treasury

The GHST amount will be calculated based on a predefined price reference at the time of execution, for example a recent time weighted average price (e.g. 7 or 30 day TWAP) to avoid short term volatility distortions.

Total initial trading capital under SkyNet management for this mandate: 400,000 USD equivalent across USDC and GHST.

2. Retainer Terms

• Monthly retainer: 5000 USDC per month, paid by the DAO
• Term length: 12 months from the go live date
• Renewal: Automatic monthly renewal unless cancelled by the DAO
• Termination: The DAO may terminate with one month notice Upon termination, SkyNet unwinds positions and returns remaining capital (USDC and GHST) to the DAO. Note: working capital can also be returned within 5 business days at any time during the agreement period.

The DAO can decide closer to implementation whether to prepay any portion of the retainer or pay month to month.

3. Scope of Work SkyNet’s responsibilities under this mandate will include:

• Providing continuous market making for GHST spot markets on Binance and other mutually agreed top tier CEXes
• Targeting improved order book depth within a defined percentage band around the mid price
• Aiming to maintain competitive spreads aligned with comparable tokens of similar size and liquidity profile
• Managing inventory risk between GHST and USDC while maintaining an overall delta neutral or near neutral posture
• Executing in compliance with the relevant exchange terms and conditions

The DAO’s goal is not to push price in any specific direction but to enhance liquidity and trading experience for participants.

Custody and Operational Setup

Exact implementation details can be finalized during the engagement process, but the expected structure is:

• Funds are allocated from the DAO treasury into exchange accounts designated for the market making program.
• These accounts are configured for API based trading by SkyNet’s systems.
• Where possible, accounts remain under DAO or designated entity ownership, with SkyNet having only the necessary trading access rather than full custodial control.
• Any off exchange custody required for operational reasons can be structured to minimize counterparty risk and maintain clear ownership.

The final setup, including account ownership and permission structure, will be documented and shared with the community prior to deployment.

Reporting and Transparency

To maintain accountability, this proposal expects SkyNet to provide regular reporting to the DAO, including monthly summary reports with:

• Overview of volumes and trades facilitated
• Order book quality metrics (for example average spread, depth at key levels)
• High level PnL of the market making program (realized and unrealized)
• Current balances of USDC and GHST under management
• Quarterly check in with Aggregated KPIs compared to baseline (pre engagement), Observations about liquidity, volume patterns, and exchange feedback, Recommendations for parameter adjustments, expansion, or scaling down

Reports will be published in the AavegotchiDAO forum and/or shared via a designated dashboard for real-time tracking of liquidity depth, volume, and balance tracking..

Budget and Source of Funds

Capital:

• 200,000 USDC from DAO treasury liquidity allocation
• 200,000 USD equivalent of GHST from DAO treasury liquidity allocation

Operating cost:

• Monthly retainer of 5000 USDC for twelve months
• Total annual retainer budget: 12 × 5000 USDC

The exact treasury addresses and allocation transactions will be defined and executed after a successful vote and prior to activation.

Implementation Plan

Upon Core Proposal approval, treasury transactions are executed to:

• Allocate 200,000 USDC and 200,000 USD equivalent of GHST for the program
• Set up and fund designated exchange accounts or custody structure
• SkyNet onboards GHST into its systems and begins active market making on agreed exchanges.
• Monthly reporting begins after the first full calendar month of operation.

At or before the end of the twelve month term, the DAO reviews results and decides whether to:

• Renew under similar terms
• Adjust scope or budget
• End the engagement and withdraw funds

Voting Options

• Yes, engage SkyNet under the described retainer model, allocate 200,000 USDC and 200,000 USD equivalent of GHST for market making on Binance and other top CEXes
• No, do not engage SkyNet at this time. The DAO may consider alternative liquidity initiatives or partners in a future proposal.