CEX Market Making

In the early stages of a project’s life cycle, trading volume is frequently too low to maintain full order books even on larger centralized exchanges, and can lead to a project being delisted for failing to meet minimum requirements. Typically then, the dev team are required to use their own funds to keep order books full and up to date, until such a time as trading volume picks up enough that this happens organically. Market making services exist for a fee, but the team is generally required to provide the funds for them to fill both the buy/sell sides of the order book.

Flexible liquidity locking will therefore allow projects with 15% developer-controlled liquidity or more to access a portion of that liquidity, for use in market making on one or more CEX platforms as required.

EXAMPLE

Token A has a market cap of $10,000,000, and 20% of liquidity is available for transfer to CEX market making:

15% total dev-controlled liquidity = 3% available to use for market making ($300,000)

exo.fi will partner with approved third-party market making services, who will have exclusive access to the unlocked funds for use in order book filling on exchanges specified by the token’s developer team. Later-phase updates will integrate bots for optional automated market making on compatible exchanges.

In this scenario, the overall amount of trading liquidity remains unchanged; it is simply being split between the exo.fi DEX and one or more CEX platforms. Just as the dev team adds liquidity to the DEX at the time their token launches, this new capability now enables them to transfer some of that liquidity to alternative CEX platforms, facilitating expansion and growth of their token into new markets with a much reduced out-of-pocket cost to their own budget.