Introduction

As flovtec, https://www.flovtec.com/, a market maker with proven expertise and innovative trading solutions, we are excited to submit our proposal to enhance liquidity and market stability for XPR on Metal X. Our prior experience on decentralized exchanges and successful collaboration with Metallicus for the last 1.5 years, including trading on Metal X on the account https://explorer.xprnetwork.org/account/flovtecprod,  sets us apart, enabling us to offer specialized strategies tailored to the Metal X ecosystem.

Our foremost objective is to help transform Metal X, operating on the XPR Network, into a premier trading hub for XPR, thereby cultivating a vibrant trading community. We aim to enhance the trading environment, making it more appealing and inviting for traders globally to engage and contribute to the ecosystem's growth.

Funding Request and Pricing Strategy

For our market-making initiatives on Metal X, flovtec respectfully requests a loan of 50 million XPR from the XPR Grants fund, overseen by the XPR Network community. While the request is directed towards community funds, we acknowledge that the formal agreement and custodianship of the funds will be managed by Metallicus Inc. This custodial arrangement ensures that the loan is managed in accordance with the community's guidelines and the mutual agreement's terms.

In accordance with the loan agreement between flovtec and Metallicus, flovtec has a six-month period post-signing to exercise an option to purchase the entirety of the loaned 50 million XPR. This option can be enacted in full or partially, with the price set at the 14-day TWAP determined at the signing date. Should flovtec partially exercise this option, the remainder of the loan must be repaid. Any purchased XPR will transfer all associated rights and titles from the lender to flovtec. Payment for any exercised option must be completed within 48 hours in USD or an agreed-upon USD Stablecoin.

This structured pricing strategy aims to reflect fair market value and accommodate future market dynamics, reinforcing our commitment to a productive and equitable partnership that supports the growth and liquidity of the XPR ecosystem.

Recognition and Experience

• Proven Track Record: flovtec brings a wealth of experience in digital asset trading, including direct engagement with the Metal X DEX and a deep understanding of its mechanisms.

• Innovative Trading Technologies: Our proprietary trading bots and strategies have been fine-tuned to adapt to the unique challenges and opportunities of the Metal X environment.

Strategy and Technical Approach

• Innovative Trading Bots: Leveraging our proprietary technology, we plan to deploy advanced trading bots tailored specifically to the nuances of Metal X. This strategy is designed to enhance liquidity, reduce spreads, and improve the overall trading experience.

• Customized Solutions: Beyond our standard offerings, we are open to developing customized liquidity solutions that meet the specific needs of the Metal X community, ensuring that our market-making efforts are as effective and beneficial as possible.

• 14-Day TWAP Strategy: Our proposal includes a detailed plan to manage the XPR loan, leveraging a 14-day TWAP (Time-weighted average price) for precise and fair pricing, enabling us to buy back the loaned XPR under agreed conditions.

Detailed Plan for XPR Loan Management

Initial Allocation and Utilization: flovtec requests a loan of 50 million XPR from the XPR Grants fund, managed by Metallicus Inc. as the custodian. This loan will be strategically used to bolster market-making activities on Metal X, enhancing liquidity for the XPR_XMD market.

Repayment and Purchase Option: Three (3) months after signing the Loan Agreement flovtec may purchase the Loaned Assets (see Appendix 1), whole or in part, from the Lender, for a duration of Six (6) months after the signing of the Loan Agreement.

In the event of termination after the initial Three (3) month period, flovtec may only purchase the Loaned Assets, whole or in part, within Fifteen (15) working days after the effective date of termination of this agreement.

The purchase price shall be determined as follows:

Loaned Tokens: 50.000.000 XPR
Amount: 100% of Tokens

Tenor / Expiry: 6 Months

Strike Price (% of 14-Day TWAP)*: 100%

*The 14-Day TWAP is calculated backwards looking from the day of mutual signing.

If flovtec chooses to execute the purchase option, it will make payment in USD or mutually agreed USD Stablecoin within 48 hours of such exercise. If flovtec exercises the purchase option in part, flovtec will repay to the Lender the remainder of the Loaned Assets. If flovtec exercises the purchase option, flovtec shall assume all of the rights, title and interest in and attached to such Loaned Assets purchased from the Lender.

Commitment to the XPR Community

• Community-First Approach: Our strategies are designed not just for profitability but to support the XPR community's growth, ensuring a stable and liquid market that benefits all stakeholders.

• Continuous Improvement: We are committed to refining our strategies and sharing insights with the community, fostering a collaborative environment that drives forward the success of the XPR network.

Conclusion

flovtec is uniquely positioned to serve as a market maker for the XPR community. Our advanced trading solutions, combined with a strategic approach to managing the XPR loan, will contribute significantly to the liquidity and stability of Metal X. We are excited about the opportunity to collaborate closely with the community and Metallicus to achieve shared goals.

Thank you for considering our proposal.

Best regards,

The flovtec Team