#51 Adding Liquidity

Proposal to add liquidity to our market maker accounts.

Background

Market makers or liquidity providers pair up buy and sell orders from traders on centralized exchanges and act as a counterparty in case no one is willing to take the other side of the trade at a specific price.

For example, if the highest METFI buy order is 2.02 USDT and the lowest sell order is 2.10 USDT there is a gap of 0.08 USDT and this is called the ‘spread’ i.e. the difference/gap between buyers sellers.

In these instances the market maker bridges that gap by buying or selling so as to give traders a good experience trading the token and not waiting for hours or days to have their orders filled.

The DAO has had a market maker performing this service since our first CEX listing and we have always provided them with the METFI tokens to trade.

Our market maker trades the DAOs METFI tokens, they do not dump or sell them on to the market but rather recirculate them by buying and selling.

The DAO always owns and controls these METFI tokens.

Motivation

We are expecting increased interest in METFI after MetaQuiz Beta launches later this month.

Providing additional liquidity to our market maker accounts on Gate and MEXC will allow the market maker to facilitate more trades, reduce the spread and give traders a better overall experience trading METFI which should correspond with an increase in trading volumes.

This liquidity will also be used to arbitrage or equalize the prices between CEXs and DEXs and improve price stability.

Liquidity

The proposal is to send 170,000 METFI tokens from the METFI Vault to our market maker wallet.

Remember, the DAO owns these tokens.

Vote Discussion

Join the discussion in the #vote-discussion channel of our MetFi DAO Discord.

Proposal

If the community approves this proposal with a FOR vote 170,000 METFI tokens will move from the METFI Vault to the market maker wallet.

Please vote FOR to approve this proposal or AGAINST to block this proposal.