Advantages of DEX and CEX in Market Making

MarketMakingPRO
2 min readAug 29, 2023

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In the realm of cryptocurrency and asset trading, the process of Market Making plays a pivotal role in creating liquidity on exchange platforms. This process differs on centralized exchanges (CEX) and decentralized exchanges (DEX), and both models offer unique advantages for traders and investors.

Key solutions offered by MMPro:

1️⃣ Generating Activity: A crucial aspect of successful Market Making is generating organic activity on the trading platform. Collaborative determination of daily trading volumes with traders and the exchange team contributes to establishing stable dynamics on the charts, making the exchange appealing to both novice and experienced traders.

2️⃣ Tight Spreads: Maintaining a narrow spread (the difference between buy and sell prices) ranging from 0.3% to 2% attracts traders by providing more favorable trading conditions and reducing potential costs.

3️⃣ Organic Volume on Charts: Mimicking patterns from successful trading sessions on major exchanges using algorithms is vital, as it enhances analytical capabilities and chart attractiveness.

🟩 Centralized Exchanges (CEX):

- Order Book and Spread Management: Active management of the order book and spread is essential in a CEX environment. Narrow spreads and stable prices attract traders and minimize volatility.

- Planning and Strategy: Developing strategies, planning capital access, budget management, and ensuring liquidity are crucial for successful Market Making on CEX.

🟦 Decentralized Exchanges (DEX):

- Volume Creation: DEX attracts liquidity through trading pools that allow participants to contribute their assets. This results in substantial trading volumes, improving liquidity and attractiveness for traders.

- Price Management: Automated price management on DEX helps control volatility and maintain more stable pricing, fostering trader confidence in trading outcomes.

- Liquidity Analysis: DEX enables projects to analyze and assess pool liquidity, providing investors with information about the trading convenience on a specific exchange.

- Decision-Making Systems: Using decision-making systems like MLMM (Multi-Layered Market Making) on DEX enables the customization of support and resistance levels to profit from volatility.

✅ The highlighted aspects of Market Making Pro on CEX and DEX showcase that our service adapts flexibly to diverse customer needs, offering solutions for both centralized and decentralized exchanges.

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MarketMakingPRO
MarketMakingPRO

Written by MarketMakingPRO

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