A market maker or liquidity provider is a market participant that quotes both bid and ask prices for an underlying asset. In other words the market maker is willing to sell and buy the asset at any given time with a small spread (difference between sell and buy price).
You can compare the work of a market maker to a shock absorber in a car that smoothens the road, so you don't feel bumps in the street while driving.
With a Market Maker your digital asset always has a bid and ask price on the exchange. Buy and sell orders can therefore be executed at all times without major price movements occurring. Market making is a prerequisite for liquid and well-functioning markets. Almost any successful project that lists its Token on an exchange works with Market Makers for this reason.
Inventory is the number of digital assets and denominated asset (e.g. your digital asset in ETH, BTC, or USD) that are available at all times to be put in the order book by the market maker.
The inventory will typically be provided by the issuer of the digital assets in a managed account on the exchange(s).
Yes, you do. On every exchange on which you want us to make markets, you need to have an account. You then grant us access to this account through a limited Power of Attorney (PoA). We connect to your account using API keys, which allow us to run our market making algorithms on the digital assets held in your account.
One important advantage of our solution is the fact that your digital assets are always held in your account. You do not transfer them to us. We need the permission to place orders from your account, but we can not withdraw any digital assets from the account (limited Power of Attorney). You are in full control of your digital assets held on your account at all times.
A market participant may not place, accept or execute simultaneous buy and sell orders for accounts with common beneficial ownership in the same underlying product, if the execution produces a wash result. Wash trading creates artificial market and price activity and is seen as illegal in most jurisdictions globally. We adhere to highest market standards and comply with given regulatory frameworks. Hence, we strongly condemn these techniques and won't ever participate in such activities.
