GSR Market Making Proposal

GSR Market Making Proposal <> Nation3(NATION)

This proposal outlines the indicative terms of an agreement for market-making services (the “Agreement”) to be provided by GSR Markets Limited (“GSR”) for the NATION token, and provides relevant background on GSR. The aim of this proposal is to seek approval for a loan of 2,104 NATION tokens, which would be used by GSR to provide liquidity across a set of specifically-supported venues.

GSR: Who are we?

Founded in 2013, GSR is a crypto market-maker that utilizes its proprietary trading system, often trading $3 - $5bn a day of volume across the entire crypto ecosystem. Composed of nearly 300 individuals, with a core engineering and trading focus, GSR uses nearly a decade of market data and expertise to continuously refine and expand its trading engines and programmatic execution capabilities, with a focus on providing best-in-class service to our clients across different stages of their development. With connectivity across 60+ crypto exchanges, GSR is also integrated with various major decentralized exchanges (DEX’s) and lending protocols.

GSR partners with projects across the entire crypto ecosystem, and has considerable expertise across the decentralized finance (DeFi) space. GSR has provided, at times, over US$1bn of liquidity a day to DeFi markets. GSR has invested in excess of $50m in DeFi protocols in the Web3 ecosystem, with the intention of further expanding its investments in the second half 2022.

Nation3 and GSR: How can we add Value to Nation3’s community?

After engaging with some of the prominent partners of the Nation3 movement, and observing the evolution of its governance, which echoes the ideals of a true Web3 crypto-powered community, we believe GSR is uniquely positioned to provide liquidity for the NATION token across various centralized exchanges (many of whom require a dedicated market-maker).

Nation3’s ability to leverage the Web3 ecosystem in transforming the concept of nation-states to crypto-powered communities is a testament to its unique ethos. As the Nation3 community evolves beyond its current size, it is essential for it to gain exposure across a broader set of market participants. Being listed across centralized exchanges (CEX’s) should allow the NATION token to penetrate a larger and more diverse audience and facilitate its further adoption across retail and institutional investors who seek trading opportunities. As a market-maker, GSR aims to facilitate frictionless price discovery and, while doing so, GSR will serve as a buyer and seller of last-resort, help reduce transaction costs and provide liquidity in periods of heightened market volatility.

Market-Making Proposal

This market-making proposal will require:

• Approval for GSR to serve as an official market-making partner for Nation3.
• An authorization to lend 2,104 NATION tokens from the community treasury to GSR to be used for providing liquidity across different venues.

The Agreement will allow GSR to repay the following NATION token amounts from the loan on the dates set out below:

• 1,052 NATION tokens, 6 months from the inception date of the market-making deal, at 1,578,000 USDT*, paid to the Nation3 treasury.
• 1,052 NATION tokens 12 months from the inception date of the market-making deal, at 2,104,000 USDT, paid to the Nation3 treasury.

At the end of the 12 month period, if GSR has not elected to repay the loan in USDT (as outlined above), GSR will return the balance of the 2,104 NATION token loan amount to the Nation3 treasury.

*USDT refers to the stablecoin ‘Tether’

GSR Commits To

As part of this market-making proposal, GSR will:

• Use commercially reasonable efforts to provide liquidity for any NATION token listing on supported centralized exchange venues.
• Deploy the loan to provide liquidity to NATION token markets, and will NOT use the loan for any other commercial purposes such as lending or staking (diluting current yields).