What is a market maker?
Well, a market maker, also sometimes referred to as a liquidity provider, is a participant in the market that is able to quote for both bid and ask prices. The market maker agrees to both buy and sell an asset whenever requested with a small spread (the difference between the buy and sell price). Liquidity is an indication of the ease in which an asset can be traded without affecting its market price. Highly liquid assets become extremely attractive to investors.
A market maker can be likened to cars shock absorbers. They smoothen out the bumps and make for a more comfortable journey.
So, how does it work?
For every great digital asset, there is a market maker providing liquidity. A market maker can allow your asset to always offer a bid and ask price on the exchange. Thus, buy and sell orders can be executed at any time without causing major price fluctuations on the market price of the asset.
Of course, projects intending to utilise Black Ocean as their market maker would need to register an exchange account. Black Ocean requires access to the assets account API. The account owner must generate API keys for the project. Each exchange has a slightly different process to setup API access and Black Ocean is there every step of the way to assure a smooth integration. It’s important to mention that the assets remain in the control of the project team at all times, the API communicates with Black Ocean infrastructure to provide the market maker service. Read about Black Oceans services.
Ok, so is it profitable?
The main goals of our market maker service are to provide liquidity and price stability. Once a project reaches a stage where they can consider themselves stable and liquid, they are able to switch strategy to a trading mode more suited to making a profit for a project. The market stability must come before this can be enabled.
How can the service be purchased?
Black Ocean has a few options for different timescales such as one-, six- or twelve-month contracts. You can also choose multiple exchanges and trading pairs. Customers can pay with USDT, USDC and FLy. There is a massive 25% discount for those purchasing with the FLy token. Check out the various options on offer on the official website.
Conclusion
The market maker service provided by Black Ocean in many ways is ground-breaking. They can offer new-to-the-space assets liquidity and stability allowing easier adoption and growth. They are experts in the field and provide an integration service that is both expedient and simple.
