Dear community members, we have been actively engaging with the GSR team in the past few months to discuss the loan renewal to provide liquidity on designated avenues for PDEX tokens. The GSR team is preparing to launch the proposal on-chain shortly and has requested assistance communicating the agreement terms through this discussion thread. Below is the content drafted by the GSR team, specifically for your insight and consideration.
<h3 id="shortdescription">Short Description:</h3>
This proposal outlines an agreement for market making services, to be provided by GSR Markets Limited(&ldquo;GSR&rdquo;), for the PDEX token. The purpose of this proposal is to seek approval for a loan of 1.2M PDEX tokens that would be used by GSR to provide liquidity for PDEX tokens listed on GSR supported exchange(s).
<h3 id="motivation">Motivation:</h3>
About GSR: GSR is a leading market maker, ecosystem partner, and active, multi-stage investor in the crypto ecosystem. In addition to the veteran traditional finance and derivatives background of its founders, GSR maintains an ethos of client service that is at the center of its offerings. With 200 employees around the globe and a core engineering and trading focus, GSR uses nearly a decade of market data and crypto expertise to continuously refine and expand its trading engines and programmatic execution capabilities, with a focus on providing best-in-class service to projects across different stages of their development. Its trading technology is connected to 60+ exchanges, including major decentralized exchanges (DEX&rsquo;s) and lending protocols. GSR works with projects across the entire crypto ecosystem, and has considerable expertise across the decentralized finance (DeFi) space - with a particular focus on core infrastructure, security, and protocol levels. It has provided, at times, over US$1bn of liquidity a day to DeFi markets, while investing heavily in DeFi protocols across the Web3 ecosystem.
<h3 id="gsrpolkadex">GSR + Polkadex</h3>
GSR has been the market maker for PDEX supporting the token on Kucoin and Gate for the last year. We hope to continue to partner closely with the Polkadex team, by helping to provide liquidity on current trading venues and any future exchanges that GSR is integrated with and actively trading on during the tenor of the agreement.
<h3 id="renewalterms">Renewal Terms</h3>
<ul>
<li>Loan Tenor: 18 Months</li>
<li>Loan Amount: 1.2M $PDEX</li>
</ul>
<h3 id="loanrepaymentcalloptions">Loan Repayment Call Options</h3>
<ol>
<li>
<ol style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: decimal;">Leg 1:</li>
<ol style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Start: Commencement</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Tenor: 18 Months</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">No. of $PDEX Tokens: 400,000</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Strike: [ATM1 + 15%]</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">ATM1 = the average price of $PDEX at 12:00 UTC on each of the last three trading days before the Commencement Date on an agreed upon venue</li>
</ol>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: decimal;">Leg 2:</li>
<ol style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Start: After 3 months</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Tenor: 15 Months</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">No. of $PDEX Tokens: 400,000</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Strike: [ATM2 + 20%]</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">ATM2 = the average price of $PDEX at 12:00 UTC on each of the last three trading days before end of month 3 on an agreed upon venue</li>
</ol>
<li style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: decimal;">Leg 3:</li>
<ol style="background: transparent; margin-top: 0pt; margin-bottom: 0pt;">
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Start: After 6 months</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Tenor: 12 Months</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">No. of $PDEX Tokens: 400,000</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">Strike: [ATM3 + 25%]</li>
<li class="ql-indent-1" style="background: transparent; margin-top: 0pt; margin-bottom: 0pt; ; list-style-type: lower-alpha;">ATM3 = the average price of $PDEX at 12:00 UTC on each of the last three trading days before end of month 6 on an agreed upon venue</li>
</ol>
</ol>
&nbsp;
</li>
</ol>

GSR Commits to: Provide liquidity for any listing on supported centralized exchanges Gate.io and KuCoin, using commercially reasonable efforts. GSR will use the loan solely to provide liquidity to PDEX markets.&nbsp;
References:
<ol>
<li><a href="https://www.gsr.io/">GSR Website</a></li>
<li><a href="https://twitter.com/GSR_io">GSR Twitter</a></li>
<li><a href="https://www.gsr.io/insights/">GSR Insigts</a></li>
</ol>

Problem Statement:
- The GSR team is seeking approval for a loan of 1.2M PDEX tokens to provide liquidity for PDEX tokens listed on supported exchanges.

Significance:
- GSR is a leading market maker with expertise in the crypto ecosystem, including decentralized finance (DeFi).
- GSR has been the market maker for PDEX on Kucoin and Gate for the past year and aims to continue providing liquidity on current and future exchanges.

Proposed Solution:
- GSR proposes a loan tenor of 18 months with a loan amount of 1.2M PDEX tokens.
- The loan repayment is divided into three legs, with different strike prices based on the average price of PDEX tokens on agreed-upon venues.

Expected Outcomes:
- GSR commits to providing liquidity for any listing on supported centralized exchanges Gate.io and KuCoin.
- The loan will be used solely to provide liquidity to PDEX markets.

#2392 GSR Liquidity Loan Renewal

No Active Proposals