GMX <> Flowdesk

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Introduction

Flowdesk is a French company founded in 2020. We specialize in Market-Making as a Service and provide a comprehensive range of crypto financial services for token issuers, blockchain projects, foundations and DAOs. We are regulated with the French financial markets authority.

We opened a desk in Singapore in 2022 and will open a desk in the U.S. in 1H2023.

Context

We are seeing a lot of growth and momentum coming from the Arbitrum ecosytem. We recently partnered with TreasureDAO to support them with their various listings, managing their liquidity and assisting with sales/funding program.

[Commonwealth](https://Link to the Commonwealth proposal)

What we do

Our MM model is different from traditional MM. We do not ask projects for a token loan coupled with a call option. We trade with the project’s funds on the exchange through API. There is never any transfer of ownership of the project’s tokens.

We also have the option to trade through Flowdesk’s accounts and/or take funds in custody to proceed to rebalancements between exchanges and interact with DEXs. This also helps ensuring we minimize counterparty risk with the exchanges.

Our mandate is to remain strictly delta neutral, however, should there be any profits generated by the daily trading activity, we share it all with the projects. We are compensated with a flat retainer fee.

We also assist projects with running coordinated buybacks, burn, or funding programs. These are relevant for protocols looking to fund part of their daily operations by selling their native tokens in the open market without impacting the price.

Proposal

We would love the opportunity to explore being market makers for GMX trading pairs on all CEXs and DEXs. Should you be already working with a market maker under a loan arrangement, there would be merit in exploring the economic difference between both models.

I am looking forward to hearing your thoughts

Thx

2 Likes
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It’s refreshing to know MM that trade without token loan.

Is it possible to also service DEXes, because it might not be possible or strait forward with API calls, how does GMX prevent Flowdesk from taking away the tokens if it’s being tasked to MM on GMX DEX itself?

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thx for your reply

For CEXs, the project disable withdrawal and deposit permissions for the API keys.

We trade via API through our tech stack with all the DEXes we have integrated (26 atm across 8 chains)

Unfortunately we need to hold some funds in custody (fireblocks/ledger) to be able to interact with the various pools. We are happy to look at GMX integration if relevant/helpful

1 Like
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thanks! what’s your model? is a pure agency desk or do you take principal risk / have your own inventory that you trade? you said MM so assuming you have your own inventory that you trade

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We identify primarily as a tech company providing the infrastructure for projects to stay in control of their own market making for their token (SaaS). As such and to answer your question, we are mostly an agency desk.

That said, we engage in prop activity periodically and on a case by case basis. It is not our core business model though.

The value prop is really:

  • no transfer of ownership of tokens
  • transparency on liquidity KPIs/metrics (dashboard)
  • 100% profit sharing
  • efficient capital usage
1 Like
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Helpful and good to know. Thank you!

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You mentioned the need to hold funds if it’s traded on DEX, what fund size ballpark r we talking about?

Will you be forgoing the retainer fees w GMX?