GIP-18: Should GnosisDAO invest at TickDAO?

GIP-18: Should GnosisDAO invest at TickDAO?

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GIP: 18
title: TickDAO Investment
author: Kelvin Santos <kelvin@tickspread.com>
status: phase-2
type: Funding
created: 2021-12-08

Simple Summary

Tick is a hybrid cryptocurrency exchange powered by an off-chain, auction-based
order matching system. Here is a link to our alpha version: https://tickspread.com/

Context

After produtive discussions with @fleupold, originating from Ethereum Research, he introduced me to the Gnosis founding team (@mkoeppelmann, @ernst, @StefanGeorge), and we jointly agreed that having Gnosis as an investor at Tick would be mutually beneficial.

Based on that, we negotiated a deal in which Gnosis would invest $500,000 worth of ETH at a 20MM post-money valuation, followed by another $500,000 from angel investors. We are thrilled to have such strategic investors and we are looking forward to see this deal happening though GnosisDAO.

Here is a document with an introduction on what we are doing and details of the proposal.

Specification

  • GnosisDAO will invest $500,000 worth of ETH to purchase 12,500,000 TICK out of a current
    supply of 500,000,000.
  • A group of angel investors will invest $500,000 to buy another 12,500,000 TICK on the
    same conditions.
  • Company funds will be stored at TickDAO, a 3-out-of-4 Gnosis Safe (tickdao.eth).
  • The signers consist of two team members, one major investor, and GnosisDAO.
  • TickDAO holds the minter role for TICK tokens.
  • All revenues, including but not limited to trading fees generated by the protocol, will
    flow back to TickDAO.
  • The team will periodically request funds for its operations.
  • TickDAO shall approve requests done in good faith and in accordance the most recent
    business plan, as disclosed to the signers.
  • TickDAO shall approve of a plan to yield the power from the Gnosis Safe to a futarchy
    mechanism.
  • While operating in a custodial manner:
    • User assets will be held in a separate 3-out-of-4 Gnosis Safe (tick.eth).
    • The company will accept deposits and withdrawals through xDai/Gnosis Chain.
  • Once operating in a non-custodial manner:
    • User assets will be held in settlement contracts in different chains/rollups, including
      one to be deployed at xDai/Gnosis Chain.

Links

7 Likes

I support this proposal. I met Kelvin and agree with his analysis on ethreasearch (link for reference) regarding batch auctions being a superior trading mechanism in the face of HFT and MEV particularly on blockchains.

TickSpread is quite different from CowSwap in that it focuses on 2 sided orderbooks (no ringtrades) and works on much faster batch times (1 second vs. lower bound 15s ethereum block time for CowSwap). The settling is done by a single party (no “solver” competition). In that sense I think the protocol is much simpler than CowSwap and may allow for faster iteration and complementary insights into the consequences of using batch auctions for DEX trading.

Therefore I think having his team as part of the Gnosis ecosystem would be a strong addition.

8 Likes

We had a couple of calls with Kelvin and I can confirm Kelvin is a very vision-driven founder with a clear roadmap in mind. Given that GIP-16 will be approved by STAKE and GNO holders, it is important to point out that TickSpread will be deployed and operated (not necessarily exclusively) on Gnosis Chain. TickSpread can be a very important dApp to foster the adoption of the Gnosis Chain.

4 Likes

I support this proposal. I have spoken with Kelvin on it extensively and am heartened by his team’s commitment to building a high frequency batch auction matching engine AND progressively decentralizing it. Kevin’s values line up with Gnosis core beliefs perfectly. Clearly, Tick are still at the beginning but have an MVP and a plan :muscle:. Together with their commitment to Gnosis chain, this to me is a strong investment case.

3 Likes

The proposal has been moved to phase-2 and a poll is now open (thanks @auryn_macmillan). Thank you all for the support.

Please vote!

1 Like

After discussing with @mkoeppelmann, we agreed to use the last spot price from Chainlink to convert the proposal from USD equivalent to ETH, so that we can proceed to phase-3 voting. Current conversion rate of $4,142.21 according to

image

According to that the proposal is for GnosisDAO to invest 120.7085 ETH into TickDAO and receive 12,500,000 TICK tokens in return.

2 Likes

The snapshot vote is now open!

Voting will continue for seven days, closing on Dec 31st, 3pm UTC.

3 Likes