Liquidity management & Market Making for cryptocurrency with 1B$ Market cap
About The Project
Multiple services that work in tandem to ensure order books, spreads, volumes, and price action are maintained across multiple exchanges effortlessly.
System Architecture
System Architecture diagram
Key Challenges
MARKET MAKING LOSSES
When limit orders are filled, taker fee needs to be paid.
IMPERMANENT LOSSES
When price moves in one direction, you're left with only one kind of asset, which needs to be converted back, resulting in impermanent loss.
EXCHANGE MALPRACTICES
Some exchanges do sandwich trades, some get hacked, some run away with trading funds, some have long API outages and breaking changes, all this leads to a difficult time keeping systems up.
ARBITRAGE LOSSES
When maintaining orderbook liquidity on multiple exchanges, you subject yourself to be victim of arbitrage opportunities.
CROSS SERVICE COORDINATION
Liquidity and pricing need to happen across all the exchanges (including DeFi pools) so that the project-wide goals are met.
EXCHANGE REQUIREMENTS
Exchanges have very strict requirements in terms of liquidity available within a certain orderbook depth, daily volume, and the orderbook spread. Defaulting in one or more of these conditions can result in token being delisted from the exchange.
Our Solution
ORDERBOOK MANAGEMENT
An orderbook management service for all the exchanges the cryptocurrency was listed on.
ANALYTICS DASHBOARD
A dashboard to monitor key stats like liquidity, volume, trading fee, other losses over a period of time for each exchange.
PRICE ACTION
A price action service for each exchange that is occasionally used to support prices (equivalent of buybacks) in the cases of high selling pressure or liquidate assets to cover operational costs in cases of good market conditions.
SUPPORT
An auxiliary service to know when to move funds across exchanges or to rebalance funds or to withdraw funds from exchange (when there's something fishy detected).
The Result
MARKET STABILITY
Maintained a consistent low-volatility profile across all market environments.
SUSTAINED GROWTH
Secured steady, long-term asset appreciation through automated price support.
OBJECTIVE ALIGNMENT
Directed all automated operations toward the asset's core economic goals.
RISK MITIGATION
Minimized downside exposure through proactive liquidity and anomaly detection.
Similar Projects
- Exchange listing compliance automation (depth, spread, and volume requirements)
- Market making analytics dashboard with fee/loss attribution and performance tracking
- Unified DeFi + CEX liquidity orchestration and price support automation
- Cross-exchange arbitrage defense and inventory rebalancing engine
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