Summary, Background, Motivation

This proposal seeks to enhance Akash Network’s market liquidity and depth across major trading pairs on key exchanges. We ask the Community Pool for 3.5mm AKT and will work with one or more professional market makers (MMs). These engagements will likely be structured as loan-call options but can include more novel strategies. Please review the Github discussion here.

Every aspect of Akash — from setting the roadmap to building the source code — is done openly and does not rely on any individual company or group.

Market making, however, has been different and depends on Overclock Labs. As of February 3, 2025, Overclock Labs has deployed 3.5 million AKT over the last two years to support Akash Network's markets across its primary exchanges. This needs to change to remove single points of failure, as true decentralization mandates that efforts to build the network should not come from any single company but rather from the community with utmost transparency. Market making, which involves building liquidity, is no exception.

This proposal aims to increase liquidity and depth by approximately 2x within the next 3 months. 2024 was a milestone year for Akash Network in terms of fundamental growth and our markets must also mature to keep pace. Enhanced liquidity and depth will enable larger positions to be bought and sold with reduced impact on AKT markets. A deeper, more liquid market will likely facilitate greater institutional and retail participation and adoption.

The additional capital will roughly double the depth and liquidity across Akash Network’s primary exchanges and pairs for 24 months. If successful, this will open the door to consistently adding more market support for Akash Network via open governance.

High-Level Details

Amount Requested: 3.5mm AKT from the community pool Market-making structure(s): Loan-call option model Duration: 12-24 months. Depending on the structure and strategy, durations can vary. A novel strategy, for example, might call for shorter durations due to the strategy’s constraints.

Final details will be shared to the extent that is legally allowed.