Market Making for Crypto

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  • All Major CEX and DEX Supported
  • Simple Monthly Pricing Structure
  • No Deposits or Fund Lockups

What is Market Making?

Market making for crypto is a process where a market maker provides liquidity to a centralized cryptocurrency exchange (CEX) by consistently offering to buy and sell a particular token at specified prices. This involves placing both buy and sell orders on the order book, usually in a grid strategy, which helps to ensure that there is always liquidity available for traders who want to enter or exit positions.

Market making is essential for the healthy functioning of cryptocurrency markets, contributing to better price discovery, reduced volatility, and increased accessibility for traders.

CEX Market Making

CEX Market Making by Volatilex involves providing liquidity to centralized exchanges by strategically placing buy and sell orders for various cryptocurrencies. Volatilex uses advanced algorithms and trading strategies to maintain tight bid-ask spreads, ensuring efficient and stable trading environments for their clients.

Our market-making services help reduce price volatility and improve market depth, making it easier for traders and investors to execute large orders without causing significant price fluctuations. Our expertise in market dynamics allows us to adapt to rapidly changing market conditions, ensuring continuous and reliable liquidity provision.

Does Market Making work on a DEX?

Traditional market making doesn't work on a decentralized exchange (DEX) since there is no order book. Most DEXs use Automated Market Makers (AMMs) instead of traditional order book systems. AMMs use smart contracts to create liquidity pools where users can trade against the liquidity provided by other users.

Market making on a DEX involves providing liquidity to AMM-based pools rather than managing order books. It has high capital requirements, and comes with unique challenges such as impermanent loss and gas fees. It also requires the liquidity provider to outright own tokens from both sides of the trade.

Volatilex is FinTech company specializing in Token Market Making for Crypto Projects, established Web3 Companies, and Blockchain Startups.

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