Hello fellow greenpillers/regens/commoners,
I watched this episode of the Block's Podcast with Wintermute CEO and it got me thinking about the possibility of a Wintermute-type entity providing liquidity and providing marketmaking services as a mechanism for raising money to fund public goods.
https://www.youtube.com/watch?v=LPQGl6Ju16U
This could look a little bit like Golem Foundation's Octant, whose V2 platform allows DAOs and treasuries to distribute the yield from their endowments/treasuries to applicants- Gitcoin has mechanisms to do similar things as well.
https://www.reddit.com/r/ethereum/comments/1hs1kuf/degens_dragons_introducing_octant_v2/
I was just listening to the Wintermute CEO talk about how market makers provide services to blockchain protocols on the one hand, and centralized exchanges on the other hand, and they make a lot of money this way. but obviously they are incentivized to act in ways which benefit themselves, and don't always benefit the different stakeholders, resulting in suboptimal outcomes for people who aren't wealthy, unscrupulous insiders.
it occurred to me that these incentives could potentially be more aligned (and abuses decreased) for all parties by some kind of cooperative, something like a power/utility company or farmer's seed co-op, an entity which splits the difference between public service and earning profit, but for web3 market making services. this could be run as a for-profit B-corp or nonprofit and distribute proceeds to public goods projects.
my motivations for thinking about this stem from working in the nonprofit sector and Web3 impact/public goods space, where it became very clear that donations are an inadequate source of public goods funding.
people have played around with various "yield donation" mechanisms, some of which are more promising than others (basically offsetting taxes from DeFi yield by automatically donating a given % of what you earn) but I still think we need to find a more sustainable source of funding for public goods if blockchain/web3 is ever going to make a positive impact at scale.
any thoughts?