The Custom Market Maker: call for feedback

[c3rnst]

Hi community!

We are introducing the Custom Market Maker (CMM) on Gnosis Protocol (available on xDai through a Gnosis Safe App. All details are part of this Medium post.

In short:

The CMM takes Automated Market Makers (AMMs) to the next level, putting a tool to create highly customizable and sophisticated trading strategies directly in the hands of end users.You can imagine the CMM as a customizable AMM, using the capital you provide on a specified, narrower range than on the pre-defined curves of traditional AMMs. It also allows you to set your strategies with one token only and whenever you want!

I am opening the discussion on this Forum:

Why?

Our motivation is to gather meaningful feedback from users and listen to external opinions to gauge the interest and priority for re-creating this on Gnosis Protocol Version 2 (v2 being actively discussed here).

Do users want the customizability of an automated market maker?

Do users want to select their own strategy? Is this too complex? What information is missing?

What use case is particularly intriguing? Who are the users?

Next steps?

Try it out and take part in the discussion!

It’s launched only on xDai to not prevent users from participating due to high gas prices (of course now an onboarding to xDai is required instead, but that is an ecosystem friendly hassle we can live with for now).

You are even incentivized to do so: First 100 CMM strategy deployments to be rewarded with 1GNO each (concrete rules are part of the post).

Meet us here to discuss your comments and concerns. Which strategy have you chosen and why? Is it as customizable as you would like? Do you have ideas for improvement?

[c3rnst]

A brief follow-up:

One use case is the deployment of the strategy with just one token. We might want to improve on the UI, however, for now you can do this easily as follows:

To deploy a strategy with one token, you will have to select a starting price close to either of your price limits (to lowest price or to highest price). The only purpose of the start price is to split the funding of the two tokens into the right brackets.

Each bracket - which corresponds to a certain price range - receives only one token when depositing. Which of the two tokens is deposited depends on the chosen start price: depending on what you select, the deposited amount can be available at a price cheaper than the current market price (which may well be intended). You can of course also simply select the start price to be the market price to be either the lowest or highest price!

[cryptorus]

Im trying to deploy my first strategy and it wouldnt allow me to click “deploy strategy” if im providing only 1 token.

[cryptorus]

Also, when flip them (do Token A: USDC and token B: STAKE) the market price is completely off.

[c3rnst]

Hi @cryptorus - thanks for the feedback, super cool you’re checking it out!!
Definitely, so for the first issue, setting a strategy with one token, does the “brief follow up” I posted above make sense? You will have to set the starting price to either the lowest or highest price - all it does is split the funding to the brackets. Let me know if it works!

As to the market price: Indeed, it might be off. We chose to display it to the user based on current Gnosis Protocol prices. However, it is better if you check some additional sources (price oracles on xDai are scarce right now) - the market price we show is only indicative and not used for any of the parameters (unless you select so).
Let me know if this helps, super curious about more feedback!

[cryptorus]

Thank you, Christiane!
I was able to deploy a strategy with 1 token. Will see how it performs.

Thank you for your help

[leandro]

Don’t know whether you have provided some of us your address or not, but if you deployed a xDai CMM strategy you will be eligible for 1GNO reward as stated in the medium post above.
You can share your xDai Safe address privately or publicly to be considered for the first payout batches we intend to send out tomorrow.

[cryptorus]

Thank you for the reminder. Sent you my address in the discord channel.

[JB123]

Here’s some feedback:
I tried and eventually backed out. My process was as follows:
Trade ETH for DAI on Ethereum mainnet
Use the xDai bridge to move my Dai to xDai
Create a gnosis safe on xDai
Go to the custom market maker app
Attempt to make a market on the app with my xDai
-there was no xDai market listed in the custom market maker
-Spent a few minutes checking for places on the xDai chain to exchange my xDai for another asset listed in the custom market maker.
-No luck, frustrated, took my xDai back to the bridge and turned it back into dai on Ethereum mainnet.
All in all incurred several instances of fees and was unable to get a market maker running.

So I think what I did wrong was dai - xDai? If I would have instead transferred over an asset listed on the custom market maker then I would have been able to complete the setup.

I gave it some effort and definetly could have put in more time, but I didn’t. Hopefully there is some useful information in my attempt.

[c3rnst]

Hiya @JB123 - much appreciated feedback! This onboarding journey is quite cruel, I am sorry that you experienced this. Wish you had pinged us before you bridged back your xDai, though:
you did everything correctly! The only missing step was that if you want a strategy with xDai, it has to be wrapped for being used on Gnosis Protocol (different standards, such like wrapping ETH to become ERC20 compatible).
There are quite a few ways on how to do it (unfortunately we do not provide this option in the Gnosis Safe or CMM App, which is very consumer unfriendly of us and we would love to implement wrapping as one of the next features).
The process for exchanging tokens or wrapping xDai is explained here in the tutorial: https://blog.gnosis.pm/introducing-the-gnosis-custom-market-maker-and-tutorial-b48774d746cb
Please let me know if you want to try again (though bridging forth and back is where you spent gas) - we also have active support on our discord channel if you ever need input urgently.
thanks for giving it a shot!