PIP-2: Centralised Exchange Listing

Author:
Core contributor of PathDAO

Summary:
$PATH tokens are currently trading only on Uniswap. Per requests from the community, we propose to list $PATH tokens on Centralised Exchange (CEX) as a way to improve price discovery process and tap into a larger investor base.

Abstract:
Centralised Exchange in discussion is a Tier-2 CEX (name of which we cannot disclose due to regulatory constraint). We have submitted Legal Opinion, Contract Audit and Due Diligence documents for approval.

The cost to list on the aforementioned CEX is as below:

  • 110K USDC worth of $PATH tokens (price of $PATH is based on the last-3-day average price of $PATH at the time of agreement signing). $PATH tokens given to CEX will be given as rewards to CEX users to drive demand for $PATH
  • 30K USDC as security deposit, which is refundable in a month
  • 5K USDC as market-maker fees per month on an ongoing basis

Voting options

  • In favor (Yes): Get $PATH listed on CEX,
    or
  • Against (No): DO NOT get listed on CEX

Rationale:
Improve price discovery process and tap into a larger investor base on CEX

Budget:

  • 110K USDC worth of $PATH
  • 30K USDC as security deposit, which is refundable in a month
  • 5K USDC as market-maker fees per month on an ongoing basis

Process:
PIP-2 will proceed in the following manner;

  1. This proposal will be open for discussion until 26th December 10AM EST
  2. After the discussion concluded and any possible adjustments have been made, the proposal will be up for voting on Snapshot. This link will be provided in due course
  3. The snapshot voting will last for 24 hours after it goes live
  4. After the voting concludes and if the proposal is accepted by the token holders, the proposal will be executed
3 Likes

Without being an expert, I’m just posing the question here for the more knowledgeable ones here:

Is listing on a Tier-2 CEX “good value for money” compared to listing on one of the top exchanges? (E.g. factoring in the Coinbase/Binance effect?)

My reasoning is that if we spent “a little more” can we get more value out of a better tiered CEX?

2 Likes

Good question, but I suspect it’s not that simple. Tier 1 probably wants certain criteria to be met that we don’t yet conform to (volume / price / mcap / budget)

Thank you for the proposal. A question please:
Can your advisers (or yourselves) put together a few notes on the pros and cons of listing at a CEX? I know you have mentioned a few things in the Discord but thought it might be helpful to have it here, to understand the positives and potential negatives too. Thanks.

2 Likes

Can you list what you define as a tier 2 cex as well? That will help the community make informed voting as now the definition of “tier 2” is ambiguous. Thank you

3 Likes

I agree. Please define Tier 2 CEX.

1 Like

Question for people with more understanding than me on CEX: How do CEX reward its users for buying a certain token? Do they get a bonus amount depending on how much they buy?

1 Like

Yeah second some of the comments here:

  1. What constitutes a Tier 2 CEX? Can you give 5 Tier 2 examples?
  2. What are some of the risks that were discussed rgd a CEX listing this early?
  3. Also, why does the team think it’s important to tap into a larger investor base at this point in time? How does that help us to build the treasury/fundamentals? (e.g. brand etc)

Thx!

It’s really hard for small projects to be listed on Tier 1 exchanges straight away. Either they have to show extraordinary trading volume, or have some connections within that exchange, or have that exchange be one of the backers (which in most cases doesn’t even guarantee them being listed), or pay a lot of money to the exchange (millions). For most projects they go to tier 2 or 3 exchanges, show that the project has enough hype and trading volume, then they can start talking with tier 1 exchanges.

1 Like

Very good idea, actually giving free token to centralized exchange users will definitely increase the demand, but I purpose to give free token to those who purchased tokens from cooper auction for 50x.

4 Likes

I don’t see how being listed on a Cex could hurt the project. It has more benefits than drawbacks. Easier for smaller orders to be filled without paying high gas fees, Possibilities of promotions by the cex, more eyes on the project, more volume, etc. We definitely need more liquidity and a cex would help being that.

2 Likes

I see no reason not to be on an exchange, it adds exposure and attracts new eyes, alot of people avoid uniswap.

But atleast we should get some examples whats a Tier2 exchange for you?

1 Like

What is the ranking of the CEX ? Top 20?

I see now you did not implement any lockup on the LP staking, so people have 4000% apr and able to sell the rewards as they please.

I doubt even a tier1 exchange can save the dynamics of this tokenomics, one of the worst ive seen for sure.

2 Likes

Tier 1’s are like binance, ftx, kucoin, huobi. Requires larger trading volumes etc before listing.

Tier 2 CEXes are like gateio, bybit, okex, mexc, Bittrex, upbit.

4 Likes

Potential upside:

  • New exposure to fresh blood who can value add to the ecosystem
  • more attention to our ecosystem

Potential downside:

  • exposure to short sells which creates artificial sell pressure (hence why we are not simply listing on small exchanges)
  • some exchanges have liquidity issues where tokens purchased can’t be withdrawed out (again, we avoid this by only going on ones that have a decent track record)
6 Likes

Upbit is the most used exchange by Koreans. Kimchi-Premium was born through that exchange.
I think tier 2 exchanges are as good as tier 1.
Like it or not, eventually $path have to be listed on exchanges. And that’s also developers’ roadmap. maybe price could be even worse. but i cant think better way for $path.

2 Likes

im leaning against Tier-2 exchanges i dont think its of much value and we dont attract the core investor we like…and want.

I think its a waste of funds, tbh!

im proposing using those funds strategically for a marketing with reputable names who can educate their users is much wiser!

When will we be able to view the treasury assets?
Scholar count?
Revenue/profit?
Seed investor cost?
Detailed projections?
Difficult for the community to make decisions when critical data is not available. Public holders are being used as exit liquidity and still don’t know the (potential) value of their bags. While “insiders” have access to important information.

4 Likes

Yes, this is very important view on the listing…we need to know our house first, what we really have and then make decisions…liquidity crisis was solved for now, so we are not under pressure

2 Likes