Chapter 4

Market Making for Projects

Apr 10, 2023

Teal Flower
Teal Flower
Teal Flower

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Abstract

Reform democratizes market making, recycling tokens for liquidity and profits, fostering a fair, transparent community ecosystem.

3 min. read

3 min. read

3 min. read

Introduction

This chapter delves into how Reform is providing liquidity for projects through our market making mechanisms. As we already know by now, market makers are traditionally dominated by large, centralized entities. We'll explore the challenges faced by emerging projects in this landscape and introduce Reform's solution to democratize access to market making.

You'll learn about Reform’s unique approach, the benefits to both the DAO and the projects involved, and how the community plays a vital role in our model.


Challenging the norm

Historically, market making has largely been under the control of big, centralized players. Many significant centralized market makers have the biggest funds, a privilege often out of reach for smaller ventures. Regrettably, these market makers sometimes leverage their privilege by giving unfavorable terms on projects. For up-and-coming projects, this landscape presents a hurdle for them to join and can hinder their growth and creativity. Moreover, with these market makers exerting total dominance over the procedure, they possess the ability to liquidate their positions at will, leading to a potential plummet in token prices.


A solution for projects

This is where Reform comes in.

We are here to break down barriers and make market making accessible for projects of all sizes. We partner with projects where they receive favorable terms for their ecosystem - And we accomplish this using various ways.

Instead of the traditional market maker's approach where they sell tokens when the contract is over, Reform funnels these tokens back to the DAO treasury. In this treasury, we use our advanced algorithm to continually generate liquidity and profits. Hence, Reform ensures that tokens are not sold and instead “recycled” those tokens back to the treasury. This approach in the broader scope will benefit everyone from the constant growth of liquidity.

However, the benefit of projects engaging with our service extends beyond the conclusion of the service contract - Transparency.

To maintain transparency for projects to the highest standard, Reform provides a trading dashboard where all activities can be traced. With this dashboard, projects can monitor all market maker activities in real-time, ensuring a level of transparency and trust. This transparency is essential to offer projects clear insights into data and technologies used, guiding them towards a proper and fair launch that benefits the broader crypto space.


Inviting top projects to the movement

Our ambition is to collaborate with other market makers that share our approach, enabling a community of like-minded individuals - There are simple steps for projects to begin their journey with us.

Reform’s journey begins with the establishment of a loan agreement or an option contract. This foundational step is followed by a service contract that spans a period of 6, 12, or 24 months. As stated earlier, upon the completion of these agreements or after the loan has been fully repaid and the service contract has concluded, the tokens are directed toward the DAO treasury. These tokens are later used by the engine for high-frequency trading activities, which generates realized profits as mentioned.


Leading through innovation

Reform's approach to designated market making presents an innovative solution that challenges the practices of traditional market makers, providing benefits to both the projects involved and the DAO.

By offering a transparent, fair, and inclusive market making model, we aim to foster a community-driven growth that is beneficial for everyone involved. Our ultimate goal is to democratize access to market making, facilitating a more balanced and equitable financial landscape.

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