Type
Operations Direct Action

Author(s)
Kollan House, Arad

Summary
We are requesting $1M and 600,000 newly minted META (~2.8% of supply) to engage market makers for the META token. Most of this is expected to be issued as loans rather than as a direct expense. This would cover at least the next 12 months.

At the end of 12 months, unless contradicted via future proposal, all META would be burned and all USDC would be returned to the treasury.

We plan to engage Humidifi, Flowdesk, and potentially one more market maker for the META/USDC pair.

This supply also allows for CEX listing fees, although we would negotiate those terms aggressively to ensure best utilization. How much is given to each exchange and market maker is at our discretion.

Background
Liquidity begets liquidity. Deeper books attract more participants, and META requires additional liquidity to allow more participants to trade it. For larger investors, liquidity depth is a mandatory requirement for trading. Thin markets drive up slippage at scale.

Market makers can jumpstart this flywheel and is a key component of listing.

Specifications
As stated in the overview, we reserve the right to negotiate deals as we see fit. That being said, we expect to pay $50k to $80k a month to retain market makers and give up to $500k in USDC and 300,000 META in loans to market makers. We could see spending up to 300,000 META to get listed on exchanges. KPIs for these market makers at a minimum would include:

Uptime: >95%
Depth (±) <=2.00%: ~40% Loan utilization
Bid/Ask Spread: <0.3%
Monthly reporting

We plan to stick to the retainer model.

We also plan on strategically working with exchanges: we are aware that once you get one T1 exchange, the dominos start to fall more easily.

The USDC and META tokens will be transferred to a multisig 3fKDKt85rxfwT3A1BHjcxZ27yKb1vYutxoZek7H2rEVE for the purposes outlined above. It is a 2/3 multisig. With the following members:

• Proph3t
• Kollan House
• Jure (Pileks)

Squads Transaction
Squads Transaction Simulation
Transaction Simulation