Introduction
Most recently, TRUUSDT perpetual contracts were launched on Binance and TRU added to cross-margining, leading to an impressive boost in daily volume and activity for the TRU token.
While the main trading pair (USDT-Binance) is very liquid, seeing significant volumes and healthy depth on both sides, it is important to cater to the entire roster of exchanges and ensure there is backstop liquidity across the board.
Flowdesk’s background
Flowdesk was founded in 2020 and combines significant experience from traditional markets with acute knowledge of algorithmic trading and crypto. Flowdesk’s proprietary infrastructure connects to more than 100 CEXs and DEXs. The company is headquartered in Paris and is a regulated Digital Assets Service Provider by the French regulator ACPR. Flowdesk employs 60 people, has an office in Singapore and plans to open up a physical presence in the U.S. beginning of Q2. In June last year, Flowdesk announced a $30M raise and are backed by Eurazeo, Aglae, Fabric Ventures, Ledger, Coinbase Ventures.
Value proposition and differentiating factor
Flowdesk ambitions to become a one-stop-shop for token issuers. Flowdesk specialize in Market Making ‘As a Service’, which seeks to give the control back to the projects over their trading and liquidity strategy on both CEXs and DEXs.
Instead of asking for a traditional loan of X% of the token supply, We trade with the project’s funds (what we call inventory/working capital), either directly with the project’s accounts on exchange (via API where permitted) or through our own accounts (to facilitate daily operational activities and benefit from reduced exchange fees)
You can find more information on our model, its technical differences and its philosophy on Flowdesk’s gitbook
You can find here an example of us collaborating with an established DAO.
Proposal
To test our operating model, we propose initiating a partnership with the following specificities, so the DAO can test our model on a limited scope:
3 month initial contract proof of concept → renewed on a 3-month rolling contract
Scope of the mandate:
- Market-making on the Coinbase TRU/USD pair through Flowdesk’s account on Coinbase.
- Some balances will be used on Binance for hedging purposes (and not for a MM mandate)
- Flowdesk will seek to remain delta-neutral.
Monthly retainer fee: $3.5k
Working capital requirements (notional):
- Coinbase: $100k in TRU and $100k in stablecoin
- Hedging: $50k in TRU and $50k in stablecoin
- Possibility to provide $300k in TRU and no stablecoin, in which case Flowdesk will seek to source USDT/USD/ETH/BTC in the open market through a best execution mandate, not impacting the price of TRU.
Profit sharing: TrueFI will retain 100% of any potential profits
Other services: Flowdesk has a global presence with offices in Paris, Singapore, and opening a desk in NYC in April. As such the team will provide ongoing account management, reporting (daily and monthly reports), 24/7 service via either Slack and/or Telegram, as well as access to a personalized dashboard (uptime, liquidity metrics, assets valuation, market share, counterparty risk…)
Please also note:
- The working capital, size, depth, and spread relating to the operations with Flowdesk are adjustable and are dependent on the strategy undertaken at the time, targeted metrics, and number of exchanges to be supported.
