Thanks @clesaege @CLCL @Dexter and @madmax for all the comments. It’s super great to hear this dialogue and see the different perspectives.
To clear things up, it definitely makes sense to start with a small amount of funds. This is why $25k was chosen - enough to try a handful of markets, but not big enough that if something goes wrong, it would be catastrophic. I personally don’t think $50k is needed in a market to be interesting to traders. But if things go well, this could be a possibility in the future.
@Dexter makes a good point that DXdao needs to learn if non whales can be LPs successfully.
Some markets would likely be shorter-term and some medium term. Shorter-term markets notional could then be recycled into additional markets.
Targeting different topics will be a big part of the experiment. What are the most popular verticals? Markets around DeFi? eSports? etc.
We want this to be a win-win scenario, but agree that it would be difficult to start this initiative with much bigger sums money.
We also need to learn how the technical mechanics of Omen Squad interacting with Omen works, and the speed at which it can happen.
Regarding some of @madmax 's detailed questions, here are some initial thoughts, but wide open for input:
but because we hope to achieves x, y or z and measure against it.
We want to learn if DXdao’s Omen interested community can collective source interesting Omen markets that attract trading activity and draw in users to Omen, can technically execute, and profitably provide Liquidity.
Is the goal simply to reduce spread and test if that drives more volume?
Target would be to have enough Liquidity that spread is not a deterrent to users. And, yes, attract users.
For how long is this liquidity available to the squad?
After a month or so, plan is to monitor how LP is doing and if appropriate recycle into more markets.
Can Omen not grow without a large amount of centralised funds to reduce spread?
Think of this as a kick starting to do one more thing to push Omen along and attract interested users
And under what conditions does it find its way back to the treasury?
The community can watch closely how the process is going, and at anytime, propose to change, stop, grow this program.
What are the likelihood of profits vs losses in that period?
Ideally, profits are made. If not profits, then maintain stability and earn fees. If losing money, then change the strategy.