TL;DR
This proposal seeks funding to enhance the functionality of the existing XARB Arbitrage Bot (“Xarbot”) by adding a market making module on the Dex-Trade exchange, where XIAN is currently listed.
This upgrade provides two major benefits:
- Improves liquidity and reduces spread for XIAN on a centralized exchange (Dex-Trade)
- Enables new arbitrage opportunities between Xian, Solana, and Dex-Trade, with profits used to buy back $XARB
Dual Utility of Xarbot
The upgraded bot will serve two complementary purposes:
Module | Function | Benefits |
---|---|---|
Market Making | Provides liquidity for XIAN on Dex-Trade | Improves price stability and accessibility of XIAN to external users |
Arbitrage | Executes trades across price discrepancies between Dex-Trade, Solana, and Xian DEXs | Generates real profit, used for $XARB buybacks and long-term sustainability |
This is a strategic step that aligns the interests of both the Xian ecosystem and the XARB community.
Funding Options
Option 1: Preferred (50,000 XIAN + 1,000 USDT)
- No need to sell XIAN on the open market
- Avoids negative price impact on XIAN
- Allows efficient deployment of bot capital in USDT, a more liquid and suitable token for centralized exchange operations
Option 2: Alternative (200,000 XIAN)
- Requires converting XIAN into USDT to seed the bot
- Involves additional overhead and risks slippage on the market
- Requires a larger allocation overall due to the illiquidity of the asset used for bounty payments
Strategic Impact
- Strengthens XIAN liquidity and price stability on centralized exchanges
- Establishes cross-ecosystem price alignment through arbitrage
- Channels arbitrage profits into buybacks of $XARB, providing real yield to the community
- Deepens trust in the XARB project through transparent, revenue-generating mechanics
Transparency and Execution
- The bot wallet will be publicly labeled and trackable
- Market making logic and spread parameters will be disclosed
- Buybacks and bounty disbursements will be visible on-chain
Call to Action
We ask the DAO to approve one of the following:
- Preferred: 50,000 XIAN + 1,000 USDT
- Alternative: 200,000 XIAN
We believe this expansion is a capital-efficient step that benefits both the XIAN token and the XARB ecosystem. It enhances our presence on external markets and strengthens the long-term sustainability of the project.
—
Posted by: @VarozXYZ