πŸ“’
Native Docs
  • 🦎About Native
    • πŸ—ΊοΈRoadmap
    • πŸ“žContact Us
    • πŸ”Security Audit
    • πŸ–ΌοΈBrand Assets
  • πŸŽ‰Campaigns
    • πŸ–ΌοΈOfficial NFTs
  • INTRODUCTION
    • πŸ”€Flexible Market Making
      • Pricing Models
        • On-chain Pricing
          • Constant Sum
          • Uniswap V2
        • Off-chain Pricing
          • Fixed Price
          • RFQ - Private Market Maker
    • πŸŽ’Self Custody
      • Externally Owned Account (EOA)
      • Hardware Wallet
      • Multi-signature Wallet
    • πŸ’ΉProject Owned DEX
  • GETTING STARTED
    • πŸš€Product Overview
    • πŸŽ“Tutorial
      • Accessing Native Portal
      • Creating A Private Pool
      • Adding Allowance
      • Creating A Public LP Pool
      • Adding LP Rewards
      • Getting Started with the Swap Widget
      • Changing Swap Widget Settings
    • πŸ™‹β€β™‚οΈFAQ
  • DEVLOPERS
    • 🧩Native V1
    • πŸ“±Widget
Powered by GitBook
On this page
  1. INTRODUCTION

Flexible Market Making

A traditional private market maker works with significant resources and complex off-chain strategies to help end users get a good price and maintain a tight bid-ask spread within a centralized exchange’s CLOB (central limit order book).

An automated market maker (AMM) relies on a mathematical formula to price assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm. AMMs are useful because they decentralize the market making process and let anyone make a market on a blockchain.

AMMs are decentralized and non-custodial, but they are not as efficient as centralized exchanges and private market makers. They require more capital to provide the same liquidity and only support one pricing model for any given liquidity pool. Capital efficiency is important, and projects need different pricing models at different stages of their lifecycles. This is why so many projects are still using traditional private market makers on centralized exchanges.

The crypto ecosystem needs a permissionless way to provide liquidity with sophisticated, efficient pricing models. We need to bring together the efficiency of a private market maker using a centralized exchange with the on-chain settlement and custody of an AMM.

PreviousOfficial NFTsNextPricing Models

Last updated 2 years ago

πŸ”€