What Does a Crypto Market Maker Actually Do? A Simple Guide for
Hey everyone 👋
For token teams, market making is more than simply placing buy and sell orders.
A professional market maker usually focuses on a few key areas:
1. Liquidity
Maintain enough buy and sell liquidity so normal trades don’t cause extreme price movement.
2. Spread & Order Book Depth
Keep spreads reasonable and maintain orders across different price levels.
3. Market Stability
Adjust strategies when volatility increases or market conditions change.
4. Multi-Exchange Management
Coordinate liquidity and execution across different CEXs and DEXs.
5. Risk Monitoring
Monitor abnormal price movements, balances, API status, trading limits, and strategy execution.
Automation is especially important when a project operates across multiple exchanges and markets.
At LightningMM, we build infrastructure around market making, automated trading, liquidity management, risk controls, and multi-exchange operations.
For token teams here: what has been the hardest part of managing liquidity after listing?
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