Proposal discussion: Market-Making Initiative from Kronos Research

Have we considered liquidity providing networks like Woo Network ?

.@BinanceLabs has made a $12 million strategic investment in @WOOnetwork, which provides liquidity on Binance Smart Chain and other protocols. @BrandyBetz reports

— CoinDesk (@CoinDesk) January 4, 2022


[Proposal: Market-Making Initiative from Kronos Research]
Hey guys, based on positive feedback to my thread from a few days ago, thought I would drop in and make a more formal proposal for market-making services. Putting it in this thread since its in the suggestion forum, rather than the one for questions.

Summary: This proposal aims to improve FX liquidity on centralized exchanges. Market makers provide buy/sell orders on either side of the midpoint, allowing users on exchanges to buy, sell, and trade the token more efficiently, giving greater confidence in the asset. In order to provide ample liquidity, Kronos Research is requesting a loan of 6,000,000 FX tokens for a period of 1 year. With this loan, Kronos Research can provide liquidity on Coinbase (FX/USD), Bithumb (FX/KRW), and Upbit (FX/BTC). Currently the liquidity on these platforms is inconsistent, and we expect, as the terms of this proposal, to increase it by 50%-100% with stable uptimes.

Note: Kronos Research does not attempt to influence market price in either direction.

Kronos Background:
Kronos Research is a proprietary trading firm founded in 2018 that trades on average more than $5b USD per day across global platforms. In DeFi, Kronos Research is a leading designated market-maker on platforms like dYdX, Matcha, and ParaSwap. Kronos Research also incubated and is the sole market maker on WOO Network and WOO X.

Action items:
Vote YES for: Accept the proposal
Vote NO for: Reject the proposal


What about binance or indodax indonesia

1 Like

i personally would see kucoin on that list aswell since its one of the most important Altcoin exchanges.


Fx need fx network on cex


So if i understand correctly, the request is for a loan of 6m fx, with which you will stimulate trading on mentioned cex-es.
And after 1 year the 6m wil be refunded into the EGF?

And if so, what wiil that do to liquidity after the 6m is pulled out of the cex?
Will liquidity fall back again?

Are there any references for other similar projects where you where involved in to refer to?

Forgive me my questions.
I am not a trader, just a hodler :slightly_smiling_face: and i try to understand the matter and method of the liquidity providing, so i can make a considered vote.

Thank you.


Where is the poll? Make sure to create it before the proposal.

Few questions:

  • It’s a loan from which pool? Who’s going to fund it? Team or EGF?
  • I guess some formal agreement is going to be signed?
  • What’s your expected profit? Or it’s a proprietary information?
  • Is the loan interest free? Or profit is going to be split somehow?
  • How community can benefit from it? I assume with that huge amount, the other individual liquidity providers will earn less at the same time.
  • Can you provide link to your websites and resources?
  • Which blockchain you’re going to use for liquidity?
  • What is going to happen if you can’t give it back for any reason (you lost it, wallet hacked, stolen, smart contract error, etc.)? Do you provide any insurance of the funds?

Again happy to have you here, and to see the proposal:

Under the catagory “developers” you can also find the sub catagory " function x proposals, there you are more likely to get (more) feedback and it is easyer to find back. As well it then being dedicated to your proposal.

What is the normal continuation after the first year? Will you than fully stop providing liquidity, or propose another loan, or continue using own funds?

I agree with @Alchimist that kucoin would also be nice to add out of the existing exchanges

and @kenorb has formulated all other questions i have that come to mind for now

Look like a scam :grinning:

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I’ve confirmed his account via Twitter message, so it seems legit.

why exactly 6 million?
How many funds do you already have in FX?

@eduardstal @Peko @DavidK

I think they’re aware as per Reaching out from Kronos Research, this thread is more community focused.

Lot’s of questions here, good to see. Some of our team is a bit light these days due to the Lunar New Year, but I’ll try to put together some of these answers.

In response to @Alchimist - we decided the markets based on a discussion with the FX team. These are the three markets by volume and with high confidence liquidity scores, which means most transactions are happening there:

As for @Jan - ideally, this would be the start of a long-term relationship between the FX Community and Kronos. After a year we’d post another proposal to continue the service. We’d have a formal agreement between the entities, which would be one thing to guarantee we didn’t disappear with the funds.


@kenorb asked about things like formal agreements - that will take place if this is approved. The main thing is that both us and FX wanted to operate in a transparent way, which is why we put it to the community first.

At the end of the day, our reputation is the biggest thing, its what allows us to be a designated market maker such as on dYdX as well as deal flow for our Ventures arm and market-making service.

Other random questions:
How can the community benefit? Will other LPs earn less?
Investors will have better access in or out of the token, making it more robust as an asset. Other market makers will have to compete if they want to earn more, which is a good thing for everyone.

Is the loan interest free? Or profit is going to be split somehow?
The loan is interest-free as it’s idle capital for FX. Market-making can be very risky depending on market conditions and there aren’t any guarantees about profitability. Other market makers have structured similar deals in DeFi, this is a pretty common format.

Which blockchain you’re going to use for liquidity?
It will be market-making on CEXes, so not dependent on any specific blockchain.

For those asking about our capabilities, you can also check us out as a top 10 trader on FTX. Kronos trades across every major CEX, but FTX is one of the few places with a leaderboard.


do you use fxcore network or still on ethereum network

Look the answer

Do you have any plant to listing fx on indodax exchange