Another Opportunity for Crypto Market Makers! Share 200,000 USDT Exclusive Prize Pool for Perpetual Contracts!
The Market Maker Rule is a newcomer to the financial market. Originating from the American over-the-counter market, this trading system could date back to the 1960s. Though its function has remained unchanged in the financial market for the past decades, the Market Maker Rule has seen its external characteristics evolving constantly.
In the traditional securities market, the market maker generally refers to a franchised dealer (e.g. a securities company) who continuously reports to public investors the buying and selling price of certain securities (i.e. a two-way quote) and caters to their trading demand at a specific price by trading his or her own capital and securities with the investors. Investors’ counterparties are market makers, so they can trade without waiting for other traders. For the time being, the Market Maker Rule has been adopted by many securities and futures markets around the world.
The market maker in the crypto industry covers a wider range: in essence, any institution/individual, who meets the requirements of an exchange and is capable of providing liquidity for crypto transactions, can be a market maker.
Uniswap has brought the concept of the automated market maker (AMM) into the public spotlight. Under Uniswap, anyone with a specific crypto can become a liquidity provider (LP) and share transaction fees. So we can include those who provide liquidity for assets as market makers in a broad sense.
Led by Uniswap, AMM has been introduced to the crypto world, and has soon become a typical example of DEX, bringing liquidity to DeFi. Without relying on the order book model, exchanges set up a pool of liquidity provided by users, and make the market based on a deterministic function. In that way, traders can receive better liquidity, and moreover, the threshold for participation is much lowered: ordinary users can share part of the transaction fees by providing liquidity with their idle assets.
Driven by yield farming that enables a low threshold and democratic market making, AMM has grown exponentially. As Hayden Adams, founder of Uniswap, tweeted in December 2020, Uniswap volume surpassed $50 billion to $51.6 billion.
At present, AMM occupies more than 93% of DEX shares, a telling evidence of the major innovation in the crypto industry. Long marching forward on this path, Uniswap solved peer-to-peer transactions with passive liquidity, and has moved to a new level of fine transaction depth.
AMM serves as a bridge connecting liquidity and trading, which is another innovation in the crypto field. Exchanges under AMM are very likely to become another blockchain infrastructure in the crypto asset market.
Crypto market makers and exchanges are indispensable to each other. In the crypto trading model, market makers obtain profits by providing liquidity on a large scale, while exchanges increase their trading volume and depth through the market-making mechanism.
To further improve spot market liquidity and users’ trading experience, CoinEx launched the first batch of “CoinEx Market Maker Incentive Program” for spot market makers, and has received great popularity. To further improve perpetual contract market liquidity, CoinEx is delighted to launch the second batch of “CoinEx Market Maker Incentive Program” — perpetual contract market makers can share 200,000 USDT exclusive prize pool! The promotion details are as follows:
1. Duration
00:00 Jun 17, 2021–00:00 Jul 06, 2021 (UTC)
2. Participation
All perpetual contract market makers on CoinEx
a. You are already a member of CoinEx Perpetual Contract MM:
Go to promotion page and join the promotion.
Trade-driven mining: https://www.coinex.com/activity/mining/trade/16
Ask & Bid mining: https://www.coinex.com/activity/mining/bid/17
b. You are not yet our market maker:
Please provide the proof of trading volume on other platforms (Monthly trading volume ≥ 10,000,000 USD) via the following approaches to sign up as CoinEx market maker, and join on promotion page to participate.
Email 1: suki.zhang@coinex.com
Email 2: vip@coinex.com
Telegram: @Suki_CoinEx
3. Trading Market
The existing trading pairs of CoinEx perpetual contract market.
4. Rules
The promotion includes “Ask & Bid mining” and “Trade-driven mining”. All participated perpetual contract market makers will share the exclusive prize pool of 200,000 USDT according to the following rules:
“Trade-driven Bonus”
For this part, the total prize is 100,000 USDT, sharing 5,000 USDT on a daily basis. During the promotion, all perpetual contract market makers can trade in ANY CoinEx perpetual contract markets to participate in the program, and share the prize based on the actual executed trading volume of all participated MM accounts. The upper limit of daily prize shared by each MM account is 1,000 USDT.
Note: Trading volume = The accumulated value of each transaction converted into USD.
“Ask & Bid Bonus”
For this part, the total prize is 100,000 USDT, sharing 5,000 USDT on a daily basis. During the promotion, all perpetual contract market makers can trade in ANY CoinEx perpetual contract markets to participate in the program, and share the prize based on the score of all participated MM accounts. The upper limit of daily prize shared by each MM account is 1,000 USDT. The scoring criteria will be as follows:
The market makers will be evaluated by two indicators of spread and depth, and a snapshot of their spread/pending orders on a minutely basis to calculate scores.
*Notes:
• The above price range is compared with the average value of the Bid1 price and the Ask1 price on CoinEx; Bid1 and Ask1 refer to the highest price of a buy order (buy one) and the lowest price of a sell order (sell one); The average price is (Bid1+Ask1)/2 = AVG.
• 0～3‱ is calculated as:
The buy order meets the conditions as 1*AVG> price> (1–3‱)*AVG;
The sell order meets the conditions as (1+3‱)*AVG> price> (1)*AVG;
3‱～6‱ and 6‱～10‱ are the same.
- The market value of the pending order = the cumulative value of the pending order amount that meets the price range.
5. Allocation
All prizes will be allocated to the participants’ Perpetual Account at 0:00 (UTC) on a daily basis.
6. Privileges of special market makers
(1) Exclusive fee rate: Sign up to be a market maker during promotion to enjoy Optimal fee rate.
(2) Exclusive API frequency enhancing service.
(3) Exclusive withdrawal upper limit: Up to 5M USD worth of withdrawal quota.
(4) Exclusive interest free credit: Apply for high capital allocation free of interest.
7. About CoinEx API
The security, stability, functionality and professionalism of CoinEx API are in the leading position in the industry. With reference to the market push protocols of major global financial exchanges, CoinEx API supports full/incremental market data push. Professional investors can build a complete market depth and order book locally to use more complex trading strategies.
API: https://github.com/coinexcom/coinex_exchange_api/wiki
For more info:
1. CoinEx MM：https://www.coinex.com/activity/market-maker
2. Becoming CoinEx MM: https://support.coinex.com/hc/articles/900004253343
References:
(1)Things You May Want to Know about Market Makers, Zhang Shichao
(2)What Is A Market Maker
(3)2nd CoinEx Market Maker Incentive Program: Share 200,000 USDT Exclusive Prize Pool For Perpetual Contracts! https://announcement.coinex.com/hc/zh-cn/articles/4402091266068
