Renew the OGP Market Making Initiative for One Year

Proposal Discussion
4
  • can we see the performance of the market making somewhere?

While we can’t get you access to the MM performance reports, the MMs were held to specific KPIs related to liquidity spread within a given dollar value, and were responsible for ensuring minimum depths on various centralized exchanges. We know this isn’t very specific, but as was the case in the previous proposal, we’re required to keep this info confidential.

Worth noting, though, that since these agreements have ended, traders are clearly feeling the impact of the loss in depth on various markets. That should give you a decent high-level idea of how much the initiative has been helping.

  • what is the payment for Amber in return for market making in the first place?

Apologies, we should’ve spelled this out a bit more clearly in the proposal. As with the last proposal, we’ll be carrying forward with the option model described here:

This also applies to your question about the MILK tokens

  • why do we want to go back to one market maker instead of multiple?

For the sake of simplicity, more reasonable costs, and to streamline KPI review.

  • what is the current price of $MILK? In other words, it is nice that is seed price, but in current markets a lot goes down… how will that affect deployment?
  • why is the MILK send to the OGP and not after that to the CP?

I don’t understand what you mean by these questions.

  • why do we want the MILK to be deployed via the OGP in the first place? What is the special place MILK has compared to other assets?

Primarily it’s because it’s the most efficient way to deploy that Osmosis-owned liquidity to make Osmosis the best DEX venue to trade MILK. We (Osmosis’s community) have a healthy supply of this particular token, and there isn’t a lot of DEX competition for it. If Osmosis deploys this liquidity via a market maker, it’s likely that we’ll win the bulk of the DEX orderflow for this asset.

  • why would we want a market maker for MILK and not for other assets? It will most surely also involve some kind of payment, meaning we will have costs on one of our not-core-focus asset?

See our note above re: the payment structure. This won’t involve any additional out of pocket payments to any market makers.

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