# [Proposal] Expanding Xarbot: Market Making and Arbitrage to Support XIAN and XARB

DAO
1

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:

  1. Preferred: 50,000 XIAN + 1,000 USDT
  2. 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.

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Posted by: @VarozXYZ

1 Like
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Update — Funding Structure Adjustment

After further discussion and consideration with the DAO, we have decided to revise the preferred funding option to reflect a more capital-efficient and aligned structure:

  • Loan: 50,000 XIAN + 500 USDC
  • Bounty Allocation: 50,000 XIAN

This approach reduces initial stablecoin needs while maintaining a strong incentive structure for the market making and arbitrage operations. The 50,000 XIAN and 500 USDC loan will be returned to the DAO upon completion or wind-down of the bot’s lifecycle.

We believe this revised structure better balances risk, sustainability, and long-term value to both XIAN and $XARB communities.

The wallet to recieve this funding is: 5cae0ae9b4495698f6ad1ad997d29dbcd1d60bdee0019105e859da6100bfa724 (on XIAN Network)

— @VarozXYZ

3

Sounds good. It will be great to have a healthy market on dex-trade.

4

Update — Final Funding Structure

Following continued feedback and alignment with the DAO, we are updating the proposal with a final revised funding structure:

  • Loan: 75,000 XIAN + 1,000 USDC
  • Bounty Allocation: 50,000 XIAN

The loan covers for aproximately 1.000 USD of depth of both sides of the orderbook, while the bounty stays the same.

— @VarozXYZ

5

Thanks for making this change at my request. This will ensure better order book depth.

6

USD has been sent : https://explorer.xian.org/tx/048FA29ACE0EAE1115F6528DE8BFDFED634EB0A399C6FE41AF2089F0981F7EB4

Proposal 24 to transfer 125,000 XIAN : https://explorer.xian.org/tx/BEA8517F25C7007A0D1B90C4E1C1102D558D38AB451C4E0E1D59F131D0E7E983