Restoring OATH Trading Volume

Hey OATH Heads,

Our team has been working in the background to solve liquidity issues, re-engineer OATH tokenomics, and re-establish OATH as a highly liquid, accessible asset in the wake of Multichain’s explosion and the de-fragmentation of the OATH liquidity base.

To do this, we are working with market makers, centralized exchanges, and other specialists to figure out our best course of action. Obviously, getting bOATH migrated next month and finishing off product launches will help quite a bit, but there has been one common denominator here:

We’re missing the volume.

If we want to get free CEX listings, oracle support, and meet other infrastructural milestones, we need to restore trading volumes for the $OATH token.

I wanted to bring this problem to you all to work on a proposal together for some kind of program that would help do this. Whether it be a trading contest, a relationship with a market maker, or a similar effort - what have you all seen that would help with this effort?

Hope everyone is having a great week.

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Would be good to understand what events took place in februari through april '23 that caused a spike in volume.

As I remember, that was the lead up to Ethos reserve’s launch and a lot of influencers were promoting oath. Also MEXC global launched oath.

I’ve been investigating on and off since that time and was met with a variety of interesting feedback. All of this was, of course, secondary to positive market conditions and a strong liquidity rotation into grassroots DeFi.

  1. Influencers were coordinating purchases of $OATH leading into and throughout Q1 2023 since the release of our first article detailing Ethos Reserve. This includes Twitter and Youtube personalities. Too many to count, I hadn’t spoken to any but a couple of them at the time and our only official ambassador at that time was Crypto Linn.

  2. We were intentionally well positioned to secure a lot of adoption in Q1 - https://x.com/0xBebis_/status/1614726036771737600

I think combined with the Arbitrum/Camelot narrative which we’d stumbled into alongside the huge pumping of Solidly DEXes, we just had a ton of good stuff going on after what had been a relatively stale year for DeFi.

  1. When volumes started going up, tier-3 asian exchanges started getting interested. We were getting contacted constantly, and shipped everyone boilerplate responses: “we are not comfortable signing papers at this time or paying for listings.” A couple of these exchanges seem to have purchased OATH off the market on their own to start trading on their platform and capitalize on the volume.

You can see how these things spiral upward.

  1. Beyond that, I think there was definitely some group trying to massively capitalize on everything we had going on. I’d go so far as to say that group wasn’t very aligned, considering the chart.

I think what we need to learn from Q1 of last year is that we need to be able to better convert general interest in the OATH Ecosystem and $OATH into long-term usership of the protocols. The new bOATH alongside Digit is designed for exactly this alongside our new social and marketing strategy.

Overall, since Q1, we’ve been a little scared to approach influencers due to the funnel described above not being perfectly in place.

I think as we start to ship these upcoming tokenomics changes, it will be important to secure some accessible trading venues with professionally managed market liquidity. To be honest, the reason we were so readily taken advantage of by influencers and ‘degen’ capital managers was because we aren’t backed by any professional firms, whether as holders of OATH or service providers. There’s nobody to ensure supply and demand are at parity, and the open-source and permissionless nature of decentralized exchanges allowed our LPs to be taken advantage of.

We are in the middle of establishing a good baseline right now to work from, but we should maybe get a working group together to meet and discuss potential venues. I am in talks with a number of trading firms who can bootstrap these centralized exchanges, but at current volumes listings are costly so we need to be extremely strategic with how we move forward.

Would love to hear more from anyone more attuned to CEX culture/business practices. Hopefully this information is useful to get us started.

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Imo temporary solutions won’t fix the problem. Lets say a trading contest gives oath the volume you want, then you get listed, then contest is over then you get unlisted (like boo was losing oracles?).

I am not even close to have the knowledge necessary to give a solution. But am not a trader myself, I buy oath, I make bOath and I stake. So this behaviour wont give you the volume you want. Only speculation and hype will give it. And I cant see that being something permanent unless we go to top 20 mcap lol.

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Thanks for the clear analysis.

Sounds to me what we need is a professional firm helping out with these issues? A firm or person that is well connected. Maybe one of the governors has the network to introduce us. Doors should be opened. We now have the narrative and the products and the yield.

The new social strategy seems to be working for now but how long can bebis produce short films about the products :slight_smile: At some point it will be repeating the same story.

Best strategy for retail I think will be the use of KOLs. With bOath and Digit the funnel is getting there. We need a budget for this. Can we assign a bag of oath and especially the launch of chapters will be useful to reserve a share of the new tokens. I believe 10% was mentioned for Aurelius? Could this be vested over time as with the oath LGE?

For institutional onboarding do we have the connections? You talked to a lot of them during the last year right?

Also a chapter launch on other L2s is important. opBSC and Arbitrum? What is in the works?

Next would be CEX onboarding.

Sorry I do not have connections with Firms/KOL/CEX to help.
Maybe we could make a list of KOLs to approach.
And have a vote about a budget for this?

With overall sentiment changing to the positive side there will be a lot of possibilities the coming years. The chapter apporoach gives us a lot of opportunities. Aligning these launches with CEX, KOL and Intitutional onboarding will be most important. My advice let’s get someone professional with a network and track record to advice and help.

that’s a good point, i think maybe the key in this case is focusing on climbing up the CEX listing ladder and continuing our growth marketing spree

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Social strategy is a good start, KOLs are the next step. Right now the focus is building demand for OATH at the insider level so we can start to find KOLs who are interested in building up positions.

Institutions will onboard over time, more and more as we scale up TVL, but an important thing is very few of them will be interested in the OATH token. Demand for micro-cap tokens and demand for our yield products don’t have a lot of overlap. Sure some of their managers or researchers might hop on the ship but appetite for risk is still very low. Bitcoin’s moves might change this if they translate to altcoin growth.

Chapters are going to play a huge part in growing the value of bOATH, deepening liquidity, and creating demand. We have begun conversations with teams across all the major chains, many are waiting to see the success of Aurelius and the RWA protocol.

I think CEX onboarding is massive, to Naul’s point (it having long-term impact). I have the CEX connections and MM connections, but am trying to be thrifty with the ones I choose. We need to get a budget approved once I can price stuff out.

In terms of working with pros, we’re already on it on multiple fronts. Our listing strategy has been in the works with help from our trading/mm service provider. We are in touch with professional trading firms, listing managers, etc. Last obstacle is pricing everything out and agreeing on a strategy.

Here’s my rough plan:

Spend a week getting oath.eco as perfect as possible, get bOATH added to Digit, get all the upgrades and migrations behind us.

Allocate some resources to Bitget and MexC listings

Work on getting listings on ByBit, CoinSpot, and potentially Gate

Work on getting a listing on KuCoin, and go from there

Starting small and working our way up will be important, and a ton of exchanges will start to add OATH on their own once volume picks up. If we can claw our way to the top 200 by mcap, we can start to think about a Tier 1 exchange listing. We are a long ways off from there.

Maybe a good next step will be defining a roadmap, some KPIs, and a budget.

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Working with MM seems to be also a way to guarantee enough liquidity to support increasing volume but again it’s a chicken and egg problem. You can incentivize liquidity and get no volume so it’s a waste of funds and money while there will never be volume if there is not base layer of liquidity that can sustain it. bOATH is great because it does expand liquidity while making wanting $OATH more interesting since you can get organic yield from it in $ERN, $wBTC, $ETH, $OP and more assets soon with v2.
For now the efforts to increase liquidity on univ3 and through bOATH will suffice. It is also important to notice that while low liquidity is not really an impediment for big players to enter since they can slowly DCA, it is a problem to exit. Big players assess their max potential loss if they need to exit a position during an emergency and with low liquidity they know they will take a big haircut if they were to dump $OATH.
Anyway, I think we are on the right path. Talented and dedicated team, smart and engaged community, groundbreaking and product-market-fit for the project!

I’m starting to agree with you here. Met with a few more experts today and until we have the volumes on chain, it’s going to be expensive to secure listings.

Basically cost is 50k+ for a tier 3 exchange, 200k+ at a tier 2 exchange, and 7 figures for a tier 1 exchange plus the capital requirements for supplying liquidity.

I’m going to see if Mantle is willing to help us get onto ByBit, and in the meantime we’ll keep deepening DEX liquidity and getting people excited about OATH.

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I have been part of some small L2 teams and listing on tear 2-3 exchanges is not worth it if we don’t have organic dex vol. Lbank, BKEX, BITMART they all ask 50k for listing plus you need MM to sustain vol there, and even after that within 6month if you don’t enough vol they will delist you or you continue to pay MM. This scenario is worse and atleast OATH should never go this route.
Currently I am connected with bybit on small scale and I don’t have direct access to listing team but the silver line here is, Bybit internally really bullish on Mental. They will do everything to make sure it survives, They have means and money for this. Hence gaining popularity via mental and then list there would be ideal and best for us. Bybit has strong communities and listing there would give oath so much engagement and vol that other cex problem with solve it self.

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Zuko brought a knowledge to my previous point: lots of effort (and money) for a change of getting delisted isnt worth. Need to be organic and when we start getting organic volume we may invest to flywheel even more the volume. That 50k could be spent in so many better things like: good marketing, partnerships, incentives, etc etc

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I think the release of Digit, implementation of oOATH, and upgraded bOATH will help a lot (I mean driving more users into the OATH ecosystem).

I will be interested to see what natural activity the OATH ecosystem has over the next 3-6 months.

Awesome feedback, thank you Zuko. I’m slowly coming to these same conclusions so the validation is much appreciated. Imo the updates to OATH tokenomics will get volumes way up and I think the strong Mantle alignment will open the door to more opportunity on ByBit.

The value prop of Aurelius+CLEO is to onboard new projects and assets, so strengthening the connection there is a big priority. Pretty turned off by the tier 3 exchanges so far.

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Thanks for outlining this Justin.

with the recent tokenomics porposal up, I don’t think trading volume is going to be the goal. The incentives outlined in the tokenomics proposal is going to encourage people to buy OATH, get bOATH and stake it. It’s not being designed with the intention of it being traded. At best, it will increase market cap and there will be people who will be incentivized to trade it, but overall, a lot of the OATH will be staked.

Regardless, in order to increase trade volume, there needs to be two things:

  • Ecosystem utility. Users need to use all of the various apps produced by Oath (Ethos, Digits, Reaper, Granary, Chapters, etc.) in order for the whole Oath ecosystem to produce the necessary fees and revenues for both the team to continue working and developing and for that revenue and fees to trickle down to bOATH stakers, which brings me to my next point
  • Oath token utility: The recent tokenomic proposal outlines greater utility for OATH and bOATH, which should encourage more users to buy and stake OATH. The use of option tokens, as well as for bOATH stakers to receive fees, real yield and airdrops should encourage ppl to come. BUT, unless the first point is addressed, it can be detrimental affects for the second point. Basically, if the rewards for bOATH stakers are very low, very few people will want to get bOATH.

Basically, greater usage for the whole Oath ecosystem will encourage more bOATH to be staked and OATH traded, so long as there is greater utility for them.

I think the first point is crucial. in order to get some volumes, there needs to be ready-made products and services (which Oath is marvously delivering!) in order for the project to market them, which again, is what you guys have been doing.

i think you should keep that up; market and create hype around products/services that are in development before they get out, and partner up with other projects in emerging OP stack ecosytems to get a Chapter set up. this in turn whille bring in more revenue, which can be used for more marketing, and getting the necessary resrouce to list OATH on CEXs.

That’s just my opinion.

I agree with Zuko. In order to get CEXes interested in OATH, there needs to be trading volume first in DEXes and in order to do that, Oath should continue doing with the points i listed above in responding to Bebis.

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Agreed so we need to ensure a ongoing stream of fees from licensing to Chapters directed to bOath

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