Host Archway Trading League on Demex

Proposals Proposal Discussions
1

Summary

This proposal aims to launch and promote the first on-chain ARCH Perpetual Market on Demex, an all-in-one perp DEX in the Cosmos ecosystem. The proposal, put forth by the Switcheo Labs team, suggests co-hosting a trading competition for the Archway Ecosystem to encourage traders to trade ARCH perpetual contracts and provide liquidity to the ARCH perp pool. This is a signaling proposal to gauge the community’s interest before we can move ahead with an on-chain proposal.

Goal

To promote the awareness of ARCH-PERP to traders, which will help to grow the Archway community, we propose a competition to reward traders participating in trading ARCH-PERP. This is part of Demex and Archway’s long-term partnership plans that we envision together. [If you are unfamiliar with Demex, jump to the “What is Demex” section below.]

Community Spend Proposal

Archway Trading League

Demex proposes to launch an ARCH-PERP market, backed by an Archway Perp Pool denominated in stablecoins. This connection aims to bootstrap deep liquidity and minimize slippage for trading. To promote these 2 launches, we propose to launch the Archway Trading League aimed at rewarding traders and bringing price action for the ARCH token.

We will implement a leaderboard for traders, incorporating the following mechanics:

  1. Traders must accumulate points on the leaderboard to compete for top rankings.
  2. For every $100 in trading volume (post-leverage), traders will earn:
    • 3 points when trading on the ARCH-PERP market.
    • 1 point when trading on other perpetual markets.
  3. Each competition will reward 20 winners with prizes paid out in ARCH tokens. The prize pool will unlock in ascending tiers based on participant traction and activity to ensure the prize pool is used up efficiently.

Prize Pool

To promote and incentivize the trading competition tailored to benefit the Archway community, we seek support from the Archway Community Pool.

For the competition prize pool, we request $10,000 worth of ARCH tokens. The funds will be used exclusively to reward winners of the competition, and a small amount may be allocated to incentivize liquidity for the Archway Perp Pool. The funds will be used to host 2 or more trading competitions, ensuring sustained engagement for a more impactful and lasting effect on traders and Archway’s external exposure. We commit to collaborating closely with the Archway team to strategically plan the competition and prize pool structure, ensuring efficient and timely utilization for maximum impact.

Liquidity Provision

As mentioned above, Demex can create a dedicated Archway Perp Pool to exclusively support the ARCH-PERP market. To bootstrap liquidity, there are two options: a) the Archway Team can provide liquidity from the community fund, or b) ARCH incentives can be used to encourage liquidity from the community. Alternatively, the existing Cosmos Perp Pool could support the ARCH-PERP market. The best option for liquidity support will be discussed and decided through a collective community discussion.

Demex’s Support

  • Demex is experienced in hosting successful trading competitions centered around top projects (Celestia, Secret Network, etc) and will host the entire Archway Trading League on Demex to ensure a fair trading competition. View our past competitions here.
  • Demex will maximize marketing efforts during the competition to aggressively promote the competition.
  • The competition will be specially designed to match Archway’s branding dedicated to the Archway Ecosystem.
  • Demex also has an ongoing Carbon Credits Program that any new users participating in the Archway Trading League to join in, to earn Carbon Credits and offset their trading fees.
  • Demex has a lucrative loyalty system called Demex Points, any traders participating in the Archway Trading League can actively earn Demex Points.

Distribution

  • This proposal, if well received by the community, will proceed to an on-chain governance proposal. This will be initiated as a community spend proposal and if passes, it will distribute the authorized amount of tokens to the Switcheo Labs’s dev team address at **archway1t8lz3zjv9cyd8x4h060w3hhdnzagm5cusj6wx7 .**
  • This sum will be used only for payment of prizes to the winners of the competition. Winners will receive $ARCH on Demex within 60 days of the competition concluding.
  • The Switcheo Labs Team will work alongside the Archway Team to make sure that the prize funds are used efficiently to maximize the reach and awareness around this competition. Any extra unused prize funds will be transferred back to the community pool fund.

Benefits

Launching the Archway Trading League on Demex offers several distinct advantages for the greater Archway community:

  1. Pioneering Market Access: Demex will be the first platform to introduce a perpetuals market for ARCH, filling a notable gap as ARCH-PERP is currently unavailable on major centralized exchanges (CEXs) like Binance. This exclusivity positions Demex as the primary destination for traders seeking exposure to ARCH.
  2. Expanded Trading Opportunities: With ARCH Perps available for trading with leverage on Demex, users can significantly enhance their capital efficiency while gaining exposure to ARCH. This provides traders with innovative avenues to maximize investment potential and actively engage with the ARCH token, fostering increased market activity and liquidity.
  3. Enhanced Project Discoverability: By providing a dedicated trading market for ARCH tokens, Demex elevates the visibility of the project within the broader crypto ecosystem. Traders actively seeking exposure to new and promising tokens are more likely to discover and explore ARCH when it is readily available for trading on Demex. This heightened visibility can lead to increased attention, engagement, and investment in the project.
  4. Facilitated Price Exposure: The availability of ARCH-PERP trading pairs on Demex enables traders to actively speculate on the price movements of ARCH tokens. This speculative activity not only contributes to price discovery by reflecting market sentiment and demand but also facilitates price transparency by offering real-time pricing information. As traders react to market developments and news related to ARCH, the price movements observed on the perpetuals market provide valuable insights into market sentiment and investor confidence, further enhancing price exposure for the token.

What is Demex?

Demex (Decentralized Mercantile Exchange) is a cross-chain derivatives DEX designed to support any type of financial asset imaginable. Demex aims to make finance accessible and trust-optional while providing an intuitive and familiar user experience. Demex is home to several popular and exotic perpetual markets.

Demex exists on Carbon Network, a DeFi-focused L1 Cosmos Network built with Cosmos SDK and is IBC-enabled. The team behind Carbon Network is called Switcheo Labs, a doxxed Singapore Web3 development studio founded in 2018.

Demex’s Perp Markets and Pools

Demex’s Perp Markets, the flagship product, will leverage the launch of the ARCH-PERP market, providing anyone with the opportunity to take both long and short positions on the token. This initiative will significantly enhance the token’s exposure and visibility, fostering price speculation and increasing project discoverability. Supported by our Pro Mode, advanced traders can utilize special limit order types, take profit-stop-loss triggers, chart trading, and more, while Lite Mode caters to those seeking a streamlined trading experience on the go. In essence, the ARCH-PERP market enriches our product offerings, empowering traders of all levels with versatile tools and opportunities for dynamic trading experiences.

Demex’s Perp Pools represent Demex’s most revolutionary innovation, fundamentally altering the landscape for both liquidity providers and traders. These automated market-makers are meticulously crafted to offer deep liquidity and minimal slippage across supported markets. The introduction of the Archway Perp Pool will further solidify this commitment, guaranteeing ample liquidity and tight spreads, thereby enabling traders to execute seamless transactions with negligible slippage and facilitating the hosting of a lucrative trading league.

Feedback

Suppose the community has any feedback regarding the mechanics of the competition or any concerns. In that case, we are more than happy to address them or make changes together in favor of the community. Feel free to leave comments below on this post, or we can engage in a lively discussion on the Archway Telegram channel.

Consolidated reference links:

3 Likes
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I fully support the proposal to launch the ARCH-PERP market on Demex, as it strategically aligns Carbon & the Archway ecosystem by introducing the first on-chain perpetual market for ARCH in the Cosmos ecosystem. This initiative should help to attract new traders and liquidity for the ARCH token, benefiting all ARCH token holders with increased market activity and broader exposure and token distribution.

The inclusion of the Archway Trading League initiative will help incentivize sustained engagement through the competition, aligning with our goals of growing the community and increasing the utility of the ARCH token. The dedicated Archway Perp Pool will ideally help reduce slippage leading to a better UX.

I hope to see Demex provide substantial marketing efforts, to help enhance the visibility and discoverability of ARCH.

I personally will be supporting this proposal and encourage the community to consider supporting this as well if they see the above reasons as a net benefit to the ARCH utility.

6 Likes
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thank for your support as always!

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I support this proposal and use of funds, looking forward to seeing these competitions in action!

@Sam just a few things I’d like to see clarified before going live with on-chain proposal

  • What’s the total amount of funds being requested? I know 10k for prize, but how much are we thinking regarding the liquidity provision?
  • Ideally, how many prize competitions will be run and what will those prizes be individually?

I think it makes sense to use treasury for as a single grant for both amounts so I guess we’d need to dial in the amounts so on-chain proposal is super clear :sunglasses:

Cheers!
d.

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Hey Drew

Thanks for your support

  1. We are still in consideration for the liquidity. It can be bootstrapped from the community using liquidity incentives, a part of which you can use from this 10k sum.
  2. We are thinking of 1-3 competitions. Thinking of something like 3k-3k-4k or 5k-5k accordingly (still need to consider if we will use liquidity incentives). We’d like to work more closely with the community to see what you’d like to see, more competitions or bigger prize pools!

Hope this sheds some clarity! We’ll be joining the governance call this week so happy to discover more.

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Hey guys, adding a response here based on conversation about it in the Archway governance call.

I’d like Archway to be in the habit of not just using the community pool to pay service providers for potentially free services, but rather to make sure partnerships bring more bi-directional value. Obviously I work for Astrovault, but I think that a passing of this proposal should also include some bootstrapped liquidity on Archway so that it brings direct benefit/TVL/tx volume to the Archway blockchain rather than paying to focus it offchain.

I like Demex, and don’t think the spend is too high, think it could be a nice go-to-market. I just think that’ll be amplified by forming a true partnership, not just establishing a client. Perhaps the Liquidity Council could get involved here?

@ethanill @Phunky

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Validatrium supports proposal to launch on Demex

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Ordinarily I would support partnerships of any kind, and feel a sense of urgency to fight for attention during a bull market. Right now, the overall crypto market cap is near all time highs. But, Archway is struggling to find footing & the token price is suffering. While I’m sure this proposal is well intentioned, I believe it to be problematic if it were to pass as is. I oppose this for 2 major reasons:

  1. Using the community pool to seed liquidity is a mistake. We have seen this backfire all over Cosmos. Look at the price action of $ATOM, $WHALE, $JUNO, $MNTA, $STARS, $OSMO and others who have done similar actions with their community pools. Deploying CP funds in this way puts risk on the community, and removes accountability from individuals (and validators) who push the ideas forward. Also, it removes the positive dynamic of price appreciation when tokens are purchased on an AMM. By the way, this is called price impact, not slippage, and this is what makes “price go up.” Therefore, individuals should PURCHASE the tokens on Astrovault for liquidity purposes, and not use the CP.

  2. Token unlocks begin in July according to the link here: Archway Tokenomics and Unlock Schedule - Tokentrack Assuming this is accurate, the supply is set to double by January, then double again by next January. This prop provides an easy avenue to short $ARCH & an easy way to profit off of failure during a time when supply explodes. This trading will occur on DEMEX, not Archway so it is unclear how this benefits Archway’s economy. Therefore, stakeholders should think long and hard on this point: Do we want newly unlocked team tokens to hit circulation while the same team members have the ability to short that token and possibly win $10,000 for doing so?

TLDR: Partnerships. YES! Attention grabbing contests. YES! Prizes for traders. YES!
Use community pool to facilitate shorting of token (on another network) 1 month before massive unlocks occur. NO!

2 Likes
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Congratulations on this passing. Still wish there was better discourse here.