Liquidity Market Making

【What is Market Making?】 Imagine running a stall at a market: you post both a “buying price” and a “selling price” simultaneously—for example, buying apples at \(9.80 and selling at \)10.20. When someone buys your apples and someone else sells to you, you pocket the $0.40 spread. Market making does exactly this in cryptocurrency markets—placing both buy and sell orders to earn the spread between them.

【What Does This Strategy Do?】 - Auto Order Placement: Places multiple price levels of orders on both buy and sell sides, like a ²⁴⁄₇ tireless trader - Smart Pricing: Automatically widens spread during high volatility (protection) and narrows it during calm periods (more profit) - Position Control: When holdings tilt to one side, automatically adjusts buy/sell intensity to avoid one-sided risk - Risk Protection: Set take-profit and stop-loss; automatically lock profits when targets are hit, cut losses when limits are breached

【Who Is This For?】 1. Passive Income Seekers: Let the strategy automatically earn bid-ask spreads without constant monitoring 2. Rebate Hunters: Some exchanges offer maker rebates (negative fees) for limit order fills 3. Projects/Market Makers: Those needing to provide liquidity depth for trading pairs

【What to Watch Out For?】 - One-sided Market Risk: If prices keep rising or falling, you may accumulate one-sided positions with floating losses - Capital Requirements: Need sufficient funds to support multi-level orders - Test Small First: Familiarize yourself with the strategy before committing larger capital