πŸ“ˆMarket Making layer

Market Making aims to produce steady returns while also providing liquidity to the overall market. The functioning of this layer can be summarized as follows:

Market Making

The funds from the Trading Treasury will be diversified and invested in various fundamentally strong cryptocurrencies. The main algorithm being used for now will be a High-Frequency grid and dollar-cost averaging (DCA) algorithm, which have proven effective in this highly volatile market. For now, this results in the garnering of more tokens of approximately 0.03% to 0.1% a day.

An example of this approach would be buying 1 Ethereum at a price of $1000, then selling it for $1001, and subsequently repurchasing it at $1000. By following this approach, the DAO generates a Realized Profit of $1. The Realized Profits will be used to keep the DAO diversified for Buybacks, Operations, and R&D. This approach allows the DAO to generate returns while maintaining a diversified portfolio and supporting the growth and development of the ecosystem. Below is an example of how this strategy will look in practice:

The calculation and measurement of Realized Profits is a crucial aspect of the operation of Reform. The profits generated from each completed trade by the algorithms will be determined by taking into the calculation of the buy, sell, currency, and asset involved in the trade. To ensure transparency and accountability, a monthly trading report will be compiled and published on the dashboard and various social media channels. This report will provide an overview of the number of trades executed and the resulting Realized Profits, as well as information on the buyback of tokens and their distribution.

Live Dashboard

Reform prioritizes transparency. This is achieved through the use of a real-time dashboard, which provides visibility into every trade executed by the DAO. Additionally, read-only APIs are available to provide further transparency and access to information about the DAO's assets and distribution.

It is important to note that the DAO will seek to engage in a high volume of trades on a weekly basis, and the operation is fully automated. This means that community members can monitor the performance of the DAO through the dashboard without the need for active participation.

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