Market Makers

Off-chain pricing is Native's greatest strength. We collaborate with diverse liquidity sources to provide the best pricing. This document outlines the technical setup to integrate as market maker.

Overview

Native's architecture is built upon three essential components: pricer, signer, and pool, within a secure liquidity network, enabling secure off-chain pricing.

  • The pricer ensures accurate price provision for order requests.

  • The signer safeguards order data for on-chain transactions.

  • The pool executes on-chain swaps using self-custody treasury.

When users request pricing on Native, Native's backend navigates various liquidity sources to discover the best price. Upon user confirmation to execute a swap, the market maker is engaged to acquire the final price, securely endorsed by the assigned signer. Signer gives market makers an additional layer to validate an order and control of the transaction can be executed by the pool smart contract.

1. Authentication (optional)

By default, Native will pass the api_key in the header of every request for you to authenticate that the request is coming from Native. You can get the api_key by reaching out to the Native team.

Furthermore, Native allows for a flexible authentication method. If you have a different authentication method, reach out to our team so we can build a specialized interface for you.

2. Setting Up Pool

Currently, Native User Interface does not support the creation of Market Maker Pool. However, you can reach out to the Native team so we can create the pool and transfer the ownership to you. You just need to provide the following information:

  1. Pool Name: The name you'd like to give your pool.

  2. Chain and list of pairs to quote and the corresponding token addresses: The chain and the pairs to quote, that are allowed tokens to be traded in the pool

  3. Owner address: the owner of the pool where we will transfer the ownership to

  4. Treasury address: the address where the fund is stored. Ideally, this should be the same as the owner address

  5. Signer address: The key you'll use to sign quotes off-chain for your market maker. Put the public key (address) here and ensure the private key is stored securely. You'll need to be able to programmatically sign quotes with the private key later on (in the signQuote API).

After the pool is created, Native team will reach out to you with an API key and the pool address.

To fund the market maker pool, you will need an External Account (EoA or Smart Contract) that needs to give token allowance to the pool. Note that this account address must be the same as the treasury address specified in the pool creation. With this method, you do not need to lock funds into a pool and still have access to all the assets.

3. Two different ways to integrate with Native

We offer market makers two different ways to integrate with us. You may choose to integrate with us via REST API or WebSocket depending on your preferences.

4. Borrowing inventory

Market makers can also borrow from Native's lending pool if they don't have inventory for specific assets. As long as the market maker provides collateral, they are allocated credit which can be used for trading and providing quotes.

If you have integrated with Native and want to leverage on Native Lend to boost your capital efficiency, you can use this guide here.

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