CIP - 002 OTC Marketplace Proposal

What are we proposing?

We create a Congruent sanctioned OTC marketplace, operated by a trusted 3rd party, where wsGaas holders can sell up to a maximum of 0.15 wsGaas or less for BUSD.

We have changed the swap token from USD Coin (PoS) to BUSD. This is because most of the small bags migrated from BSC, are familiar with the process, and won’t need to be coached on a whole new blockchain.

An OTC (Over the Counter) crypto deal is one where two independent parties swap tokens without the use of a CEX or DEX.

What is the goal?

Reducing the cost of swapping less than 0.15 wsGaas.

Consolidating our smallholders.

What is the benefit to Congruent holders?

50.76% of all congruent holders have less than 0.15 wsGaas, for these individuals the cost to liquidate their position is anywhere from 25% (0.15 wsGaas) to 100% (Less than 0.035 Gaas.) This would help our smaller holders sell if they wanted to.

100% of the net profits from the exchanges would go to the treasury and the bribe pool, benefiting those that still hold vGaas.

The OTC proposal will also consolidate smallholders allowing us to operate more smoothly and with less FUD.

Concerns with OTC Transactions The biggest reason OTC transactions aren’t very popular is trust. An OTC transaction requires one party to blindly send funds to another party with the hope that they’ll send back the agreed-upon token in the agreed-upon amount. To prevent this, I would like to propose a ‘Broker’ that would handle all OTC transactions. This Broker would accept payment from both parties to a specified wallet. After the funds from both parties were received, they would be redistributed back out. In a sense, the broker would be acting as an escrow to ensure everyone involved would follow through with their agreement. This broker (trusted third party) would be monitored/ regulated by the use of a multi-sig wallet requiring 2 signatures for a transfer. (The total amount of signers will be 5, to allow swift acceptance of transfers.) To cover the ETH gas fees needed to resend out the wsGaas there would be a small fee paid by the ‘buyer’ in addition to the cost of the wsGaas purchase. This will allow the program to be self-sufficient and cost the treasury nothing, while simultaneously saving money for our smaller investors.

What about the USDC/wsGaas Liquidity pool?

When this is launched it will most definitely provide buyers with a more streamlined purchasing platform.

What it will not do is reduce gas fees for smallholders, as the OTC proposal would.

The USDC/ wsGaas Liquidity pool will add to our treasury since we will hold the majority of the liquidity, therefore we will put a max buy amount of $500 for OTC transactions leaving the larger buyers to use the liquidity pool.

How does it work?

In order to not interfere with future projects, the maximum wsGass you’re allowed to sell is 0.15 and the current maximum amount you’re allowed to purchase at a time is $500. (The OTC team may decide to change these Maximum amounts at anytime to ensure we don't interfere with the Liquidity pool.)

1. The seller deposits the wsGaas, maximum 0.15 wsGaas per sale, (minus up to 15% of the wsGaas as a transaction fee) into a multi-sig wallet, (trusted third party & Mod/Dev.) Sellers with less than .01 wsGaas will be refunded up to a maximum of $10 of the ETH used for gas in BUSD. (For this benefit to trigger the seller must have 0 wsGass left in their wallet.) a. After the deposit is made, the seller must fill out the provided google forms sheet including transaction hash to verify the deposit.

https://forms.gle/C5tKc3BpRFpaW7qWA

2. A buyer sends BUSD for the value of the desired purchase amount (minimum $100; max $500) The Buyer will pay for ETH gas to receive wsGaas along with up to a $45 transaction fee. (THIS TRANSACTION FEE IS ONLY PAID ONCE PER BUY.) a. After the deposit is made, the buyer must fill out the provided google forms sheet including transaction hash to verify the deposit.

https://forms.gle/y6J9DLxSq9NvPs2n9

3. The wsGaas is bundled for the buyer and the BUSD/ wsGaas is released from the multi-sig to the buyer/ seller.

The google forms will populate onto an excel spreadsheet which will be manually worked through to match buyers with sellers.

If the project is determined able to sustain itself on lower transaction fees, they will be lowered at that point in time.

The $45 transaction fee from the buyer and 15% transaction fee from the seller will create the gross profits of this project.

30% of gross proceeds will be kept in the OTC wallet to pay for the project making it self sustaining and not utilizing any funds from our treasury.

The Multisig holders will receive a salary of up to $500, (depending on profits.) The remainder of proceeds for the OTC Marketplace will be paid to members of the Congruent community that participate in assisting the OTC team with completing their work (Carrot M and c(Holy) are excluded from the payment).

Determining Price

Price will be determined at the time of calculation, immediately before the time of swap, this means when the tokens are sent in they enter a ‘waiting room’ until they can be processed. Being in this ‘waiting room’ is exactly the same as them staying in your wallet.

The processing of these transactions is most likely to occur between 2am and 8am UTC when gas prices are the lowest.

OTC TEAM MEMBERS: (Multi-sig 3 out of 7)

1. Handsome Adam - Management/ Operations/ Multi-sig Holder

Duties will be to create and post jobs to the community including but not limited to:

• Verify transaction hashes to ensure deposit into the Multi-sig wallet.
• Work through the data to match buyers with sellers and submit the transactions for approval of multi-sig holders
• Prepare and post weekly/ monthly profit reports.
• Continually work on increasing profitability of the OTC Marketplace for the Treasury/ Bribe Pool.
• Continue to spread the word trying to reach the inactive members of the DAO.

Any of these tasks may be outsourced to volunteers of the congruent community for a reward on completion.

(All completed transaction reports and all weekly/ monthly profit reports will be completely transparent and available for audit by any member of the community at any time.)

2. Chrom -

Duties: Multi-sig Holder

• Verify transactions and approve them for sending.

3. necro ツ -

Duties: Multi-sig Holder

Verify transactions and approve them for sending.

4. AtomB -

Duties: Multi-sig Holder

Verify transactions and approve them for sending.

5. Kama -

Duties: Multi-sig Holder

Verify transactions and approve them for sending.

6. Carrot M. -

Duties: Multi-sig Holder

Being sassy like a redhead should be.

7. c(Holy) -

Duties: Multi-sig Holder

Providing the majority of all frog animations.

Carrot M. And c(Holy) will be acting as redundant backups for emergencies only. This will allow the transactions to continue to happen even if we have absent team members. They will not be participating in day to day operations as they will continue completing other tasks.

Implementation

1. Create a multi-sig vault requiring a 3 out of 7 multi-sig holders to confirm.
2. Fund the Vault with BNB and ETH for the gas required for the initial swap transactions. (This gas will be supplied by the OTC Team, not the Treasury, be repaid at the convenience of the OTC Marketplace.)
3. Create a channel on the Congruent.fi Discord server with the sole purpose of initiating, answering questions, and finalizing OTC transactions.
4. Add a tab to the drop-down menu on app.congruent.fi with a link to the OTC Marketplace. (When there is a functional product)

Distribution of all net proceeds:

50% Congruent Rewards Pool 50% Congruent Treasury

The funds allocated for the treasury will be transferred on a weekly basis, every Sunday, between 2am and 4am UTC. (Gas fees for this transaction will be paid for by the OTC team.)

Yes, adopt an OTC Marketplace for wsGaas using USDC (PoS) with 50% of net profits to the Congruent Rewards Pool, 50% of net profits to the Congruent Treasury paid every week.

Vote Details: Minimum required quorum - 10% of vGaas Supply Minimum required affirmative vote to pass - 50% in favour Users who hold vGaas are able to vote.

The voting lasts for 72 hours. Yes - Represents “Agree” No - Represents “Disagree”