Enhancing Liquidity Provision for CEX Tier 1 Through Innovative Market Making Strategies
Active market making on 19 futures pairs, 39 000 000 trades per month
Tier 1 CEX, founded in 2013, is a prominent cryptocurrency exchange with diverse digital assets and advanced trading features.
Market-making on Tier 1 CEX is crucial for liquidity, as it involves continuous buying and selling facilitated by market makers. This activity reduces bid-ask spreads, enhances market efficiency, and fosters a healthier trading environment.
Tier 1 CEX stands out with key features like advanced trading tools, high liquidity, and strong security measures, including cold storage. Its user-friendly interface and commitment to meeting diverse crypto community needs contribute to its position as a leading global exchange.
Market-Making Objectives
Exchange Support
- Objective: Implementing automated trading algorithms to facilitate seamless order execution and enhance overall trading experience.
- Benefits: Significant reduction in trade execution time, with an estimated 25% increase in overall trading efficiency and user satisfaction.
Arbitrage Support
- Objective: Utilizing advanced algorithms to identify and exploit price differentials across multiple exchanges, enabling arbitrage opportunities.
- Benefits: Improved market efficiency, leading to an average 12% increase in profit margins for users engaging in arbitrage trading strategies.
Systematic Trading
- Objective: Developing systematic trading strategies through algorithmic models to execute trades based on predefined criteria and market indicators.
- Benefits: Enhanced risk management and consistency, resulting in a 15% reduction in trading losses and a more predictable trading performance.
Volume Maintaining
- Objective: Implementing strategies to attract and retain high trading volumes through competitive fee structures and user incentives.
- Benefits: Aiming for a 20% increase in daily trading volumes, fostering a vibrant trading ecosystem and providing users with ample liquidity.
Liquidity Provision
- Objective: Employing market-making algorithms to continuously provide liquidity by placing buy and sell orders at various price levels.
- Benefits: Achieving a target of reducing bid-ask spreads by 8%, resulting in increased market depth and improved liquidity for all traders.
Price Stabilization
- Objective: Using stabilizing algorithms to monitor and counteract extreme price fluctuations, promoting a more stable and predictable market environment.
- Benefits: Targeting a 10% reduction in price volatility, ensuring a smoother trading experience and minimizing abrupt market movements for users.
Technology Infrastructure:
The comprehensive suite of offerings provided by our market-making team encompasses a myriad of services, with a primary emphasis on optimizing trade execution timelines. This optimization is realized through the strategic utilization of Websockets connections, establishing a seamless and efficient link to the exchange.
Our commitment to delivering unparalleled market-making solutions underscores our dedication to precision and excellence in navigating the intricate landscape of financial transactions.
Performance Metrics:
The sustained momentum in trading activities is reflected in an aesthetically appealing trading chart. Notably, the chart now accommodates 15-second candles, enhancing the platform's capacity to captivate new traders and augment its comprehensive trading metrics.
Contracted pairs:
Key Metrics from the Last 30 Days:
- 1. Total Trades Executed: 39 million
- 2. Trading Volume in USDT: $52 million
- 3. Profit and Loss (PnL): -$38 (equivalent to -$2 per month, per pair)
Ready to enhance your market position?
Contact us to discuss how our market-making prowess can be tailored to meet your specific needs.
Book a call