Grant for GM <> Mango Markets

Continuing the discussion from Grant for Trader Support and Customer Relationship Management:

Hi All,

It’s been great working with everyone over the past 4 months, both a fun challenge onboarding our own trading systems, backstop liquidity and that of other HFT MM’s in the space. The GM team is looking forward to expanding on this relationship under terms discussed with the core team at the start and over this period. All of the required contributions have been met & I’m very pleased to say that mango liquidity is at an all time high with spending at an all time low.

Some notable points that I’d like to make:

  • It’s a tricky sport combining trader/HFT privacy with onboarding targets & book targets but this can be confirmed by the orderbooks themselves and the product that @waterquarks had built for the purpose of the MM program & tracking Mango’s health: Mangolorians
  • The current GM team is 3 fold strong (waterquarks will quit his data science role at a CEX and full time mango data + full stack development, Crusher will focus on onboarding trading firms from the dev side as full time integration specialist - which is a huge lift off the core team so that they can focus on developing V4)
  • A close friend of GM and an exceptional developer will join the Mango Labs team under a separate proposal to focus on smart contract development with the core dev team
  • Goals have changed over the past 4 months, in particular around getting required tools necessary to manage risk - namely TIF (which was a 3 week sprint), focusing on pairs that matter (BTC, AVAX, LUNA, ETH, SOL) rather than smaller pairs where the benefit vs cost isn’t worth it.
  • We have had a few successful events in the short time - namely Prague (running a trader panel) & CryptoBahamas [and looking forward to a big Lisbon this year]

Going forward:

  • GM will expand to ensure that there is 24/7 coverage
  • Closely contribute alongside the core team for all things latency, connectivity and shape the development of core features required by trading firms / market makers & institutional players & core requests from the community–> So that Mango V4 (and V3) can support the flow of all the hordes of traders when the gates are properly opened
  • GM will work with key B2B partners (i.e. wallets, custody solutions, borrow/lenders, exchanges, additional languages) to insure the required integrations are delivered, hackathons are managed, events are held - all giving the core team more time to focus on the product at hand and free up a large chunk of their time

The initial grant of $150,000 USDC stood as a trial period & matched market rates. We are looking forward to expanding on this and working with Mango collectively as a core team member - if the DAO members & team are in agreement:

  • GM moves into BD role which encompasses liquidity, flow, volume, revenue & support
    Compensation of 500k/yr + 40m MNGO (5 year vesting with clawback)
    200k/yr expenses budget
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Love what you are doing and how you’ve meshed with the Mango team. I have no idea about how this proposal fits into the Mango budget however, and cannot vote intelligently (unfortunately). In case someone from the core team wants to add context: the key elements (to me) are whether this proposal officially integrates GM into Mango and if you’re all working with the same, or at least similar, incentive structures.

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Thanks @Autocatalytic - appreciate the kind words, I think it would be fitting to get some feedback from the core team too on how we’ve meshed and how the next chapter could look. I believe this brings GM into the same realm in terms of incentive structures as what is live internally + what the market currently would offer. For the most part GM manages trading with partners / through partnerships so I can confidently say this reflects a commitment to be fully invested, time wise - into Mango.

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Hey some color from my side. I have been supervising the GM team with their work for the DAO so far as they have taken over a lot of the work I was doing previously.

whether this proposal officially integrates GM into Mango

First, it’s an independent company with it’s own leadership and employees. I participate in daily meetings with the whole team though to give feedback on their process and make sure they don’t re-invent the wheel and pursue duplicate efforts. The goal there is mainly to remove friction and to create some form of transparency towards the rest of the core devs. My goal for the next 3 months is to make the process transparent so that every contributor can easily follow their progress. There is currently no plan to make green mamba a part of Mango Labs or any other DAO affiliated organization.

if you’re all working with the same, or at least similar, incentive structures.

Great question. This came up before in different discussions before, so it’s good to explain it openly as well. I don’t think everyone working on this project has the same incentive structures.

People with individual grants from the DAO usually have contributed to the project a lot before and enjoy enough trust for that level of autonomy.
People employed by Mango Labs, are basically vetted by Tyler and Daffy. They made a lot of previous contributors quit there daytime jobs to start working full-time for Mango.
As far as I know, everyone under these arrangements is fully dedicated to Mango and not pursuing any other efforts at the moment.

There are a bunch of part-time contributors that receive grants from the DAO, but are not on the same incentive level, because their contributions don’t warrant a full time position or because they want to focus professionally on something different.

Green Mamba is a pre-existing firm that has been mostly dedicated (90%) in it’s work to Mango from what I know. There were offers from other solana native teams to work with them (zeta, juiced) but none of them accepted, because they value the opportunity Mango gives them. There is no exclusivity agreement that would bind them though. Most full-time contributors to Mango consider their relationship exclusive on the contrary.

In case you have more questions I’d invite you to come to the dev meetup tomorrow, invite is on discord. That will be the best place to discuss these questions further.

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GM seem to be doing good work and they already are using their own subDAO to administer the market making program, which is super cool. The grant size is large but GM have big plans for their team’s future. And see how they are embracing the DAO mentality, I look forward to seeing how their relationship with the mango DAO continues to grow.

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I support this proposal. GM provides a very unique skill set and a healthy ecosystem of market makers is critical for Mango’s long term success. Progress so far has been impressive given the network issues.

I look forward to seeing what they can achieve once Solana is reliably functioning and they have more time and resources to improve liquidity even more.

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Thank you all very much. I love the tone of this discussion, on discord and dev calls. Half mil a year for three productive, motivated contributors plus expansion to 24/7 coverage seems like a solid approach to realize Mango’s potential in the face of oncoming competition.

One quibble with the budget is expenses of $200K/yr ongoing seems a bit high considering how much flights and lodging have changed, but I also hate the idea of using a person to track expenses or having a request system to administer. Maybe this can just be a debit card with an $X account or something? If there’s money left at EOY it just gets topped back up to $X.

We like the Shadowy Super Quoters

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Thanks everyone for the trust - the vote passed, we’re all looking forward to the next couple of months.

As an update, I’m pleased to state that Waterquarks has now officially joined the GM team full-time. We’ll expand the team likely in the Asia region. Main goals for the next few months will be to ensure that liquidity is unmatched, all whilst getting ready, until we go all out for V4 launch and break all previous thresholds.

Klossie

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Just seeing this now, can we please have a breakdown/projection of how the 200k / yr in expense allowance was decided?

Also in the interest of transparency, can GM commit to a monthly or quarterly expense report? Given the amount, it wouldn’t be unreasonable to ask imo

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Expense reports are already a thing, reviewed by Max - if that ceases to be the case, happy to drop some form of an expense report for sure.

Regarding breakdown/projection, I expect that the budget is larger than what will be spent at this current point (given we’re just at the beginning of ramping up) - expenses would most likely fall into travel, events and conferences with events taking the largest portion.

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Hi Mango Dao,

Just wrapping up a summary of the last 3 months here & what we’ve seen / done:

  • We’ve been trialing low (to no) rewards on Mango perps to see how MM’s perform purely with rebates + relationships, instead of the older model of high rewards and little support. This included building out a ticketing system and a great degree of time spent helping out market makers / traders.
  • It’s safe to say that we have a good model to use for the launch of V4 now, that will work very effectively to bootstrap liquidity and interest in using the exchange and protocol. Naturally the issues of Solana over the past few months have made it quite difficult to onboard new trading firms / traders due to negative experiences. We did however road-show the platform to a long list of names that represent a good amount of the MM market.
  • We introduced the spot serum trading competition to the serum dao which was approved and has also been successful (spreads during the first week were reduced by 53% when compared to prior periods) - expecting this relationship to develop throughout the launch of V4 as well. The DAO gained 100k SRM as part of this proposal. All in all, more trading of perps vs spot has done Mango well with the exchange being revenue positive when considered LM rewards spent from outside versus fees earnt from taker flow.
  • Discussions around promoting Mango whilst Solana was suffering lead to the decision to hold off on promoting liquidity on perps and as of such the liquidity Dao retains 404k USDC which will likely only be touched come V4 launch.
  • We worked with a CIS community member (Yakov) to build out a presence for Mango and have V3’s UI translated (which should go out soon) - this ties into our plans for the next 3 months (see below).
  • We redesigned the gitbook to be more readable & have more developer resources, whilst also running a fills service.
  • As with all entities we have had some ups and downs, but we’ve hired a marketing intern to begin working on all things related to promoting the exchange, who should be up and running in the next week.
  • We planned to put out some content around the SRM trading competition, to the Mango Youtube account but didn’t get to this yet. (As well as proposing & explaining changes to perp fees for V3)

Where to next?

  • Clearly we haven’t focused enough on getting the Mango brand out to the market, partnerships with wallets - onboarding users to Solana, focusing on different geographical regions from the user perspective and tracking the success/failure of content that is put out. So therefore we will focus less on liquidity for the next few months, still ensuring that there is sufficient liquidity but rather focusing on growth of the mango brand & ecosystem. (this will be measured by increased sign ups & pubkeys trading on Mango)
  • We’ll finalize the SRM trading competition and propose continued support from SRM to promote liquidity and trading on Serum given our provable improvement to the order books. (As mango doesn’t take a cut from any Spot volume)
  • We’ll onboard one more top tier market maker to Mango, which in our view will remove the need for much further development on this front - we have a great lineup of MMs currently live. This could likely include building out a collateralised lending program for top makers on a delegate account with automated controls.
  • Marketing for Mango is added to GM’s plate + focus on language/geo expansion CIS & Asia for a start - we’ve already begun to sync with Solana directly in order to work together on multiple fronts.
  • We’ll work on having language tracking, retention tracking analytics and get data on which communities are actually working - so we can prioritize changes where necessary
  • Finally, we’ll be putting out some more informative content on risks, trading strategies and a few more demo trading programs, whilst also integrating the off-chain program tracking into the UI itself (similarly to dYdX rewards UI)

Regarding expenses (reviewed with Max), please find a breakdown below:

Categories Quarter
Travel / events / Relationship Management $25,718.12
BD development (Geo expansion) $15,342.05
Tech / Servers $7,910.58
Total Spent $48,970.75

This was an aggressive 3 months of getting the word out and meeting with trading firms, so we’re expecting a much lower spend for the next 3 months (by at least 40%).

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