Approval of STG Market Maker Proposal by Stargate Community

02/20/2023 07:57 • Metaverse & Beyond • 104 views

On February 20, the snapshot page showed that the vote on the proposal of “hiring GSR as the market maker of STG in the centralized exchange” initiated by the Stargate community of the cross-chain bridging agreement had ended and was approved with 98.2% support. According to the proposal, Stargate will provide GSR with 8 million STG European options, on the condition that the average price of STG exceeds $1.15 after 24 months. Stargate said that in order to protect the market, it would not disclose the specific price required.

The proposal of Stargate community to hire GSR as a market maker was approved

Interpretation of the news:

The Stargate community of the cross-chain bridging agreement has initiated a proposal to hire GSR as the market maker of STG in the centralized exchange. The snapshot page on February 20 showed that this proposal had been approved with 98.2% support from the community. As per the proposal, Stargate will provide GSR with 8 million STG European options if the average price of STG exceeds $1.15 after 24 months.

The approval of this proposal indicates that the community members are in favor of creating a market that can enable the trading of STG tokens in different parts of the world. Being a cross-chain bridging agreement, Stargate is aimed at enabling seamless and efficient communication between different blockchain networks. The inclusion of GSR as a market maker is expected to enhance the liquidity of STG tokens, which is a prerequisite for their wide-scale adoption.

GSR is a global quantitative trading firm that specializes in automated market-making and algorithmic trading. It provides liquidity to a wide range of financial products, including digital assets. With this proposal, Stargate is essentially outsourcing the responsibility of ensuring adequate buy and sell orders for STG tokens to GSR. This will allow Stargate to focus more on its core business of cross-chain bridging.

The condition for providing 8 million STG European options to GSR is based on the average price of STG exceeding $1.15 after 24 months. This condition indicates that Stargate is optimistic about the long-term value of STG tokens. However, in order to protect the market, Stargate has not disclosed the specific price required. This is a reasonable approach as it prevents market manipulation by traders who might want to artificially inflate the price of STG in the short term.

In conclusion, the approval of the STG Market Maker proposal by the Stargate community is a positive development for the widespread adoption of STG tokens. By outsourcing market-making to a reputable firm like GSR, Stargate can focus on its core business. The condition for providing STG options to GSR indicates that Stargate is optimistic about the long-term value of STG tokens. However, the decision to not disclose the specific price required is a prudent approach to avoid market manipulation.

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Approval of STG Market Maker Proposal by Stargate Community

The proposal of Stargate community to hire GSR as a market maker was approved

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