How Market-Making Functions in Web3

Market making in Web3 leverages smart contracts and decentralised protocols to automate providing liquidity. This automation allows for a more transparent, secure, and efficient mechanism to ensure market depth and stability.

Market makers in the Web3 space often utilise algorithmic strategies to adjust their buy and sell orders based on real-time market conditions, optimising liquidity provision and minimising spreads—the difference between the buying and selling prices.