<p><a href="https://coinmarketcap.com/alexandria/glossary/market-maker-market-taker"><span data-contrast="none">Market making</span></a><span data-contrast="auto">’s</span><b><span data-contrast="auto"> traditional, proprietary model</span></b><span data-contrast="auto"> has played a part in this by incentivizing risk-taking, instability, and volatility.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><span data-contrast="auto">The model necessitates the proprietary trader taking a potentially large portion of a token’s supply as an interest-free “loan” from the issuer to get the tokens to be supported. Then, the trader adds its own funds as collateral to market make.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><span data-contrast="auto">Proprietary trading produces profits in three main ways: on the bid–ask spread, on arbitrage, and by exercising the </span><i><span data-contrast="auto">call option</span></i><span data-contrast="auto">, the trader’s contractual right to buy the borrowed tokens at a predetermined price basically anytime — and selling the tokens.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><span data-contrast="auto">Because proprietary trading can often be intransparent, without sufficient oversight, projects risk losing a large share of their tokens. To maximize profits from the bid–ask spread, proprietary traders can take risky bets. Contractual call options, an inherent conflict of interest, incentivize token price increases. This way the proprietary trader can exercise its right to buy the tokens cheaply — effectively trading against its client. This fosters system-level pump-and-dump volatility rather than providing stable liquidity.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><span data-contrast="auto">FTX’s main market maker, the leading proprietary trading firm’s Alameda’s downfall made it perfectly clear: we need a better way of providing liquidity. Trustless, transparent, scalable, and asset-agnostic market making. One that guarantees full alignment of interests between token projects and the service provider.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><a href="https://www.flowdesk.co/crypto-services/market-making"><b><span data-contrast="none">Market Making as a Service (MMaaS)</span></b></a><span data-contrast="auto"> is this </span><a href="https://mirror.xyz/0x8fb8C9D663a137e544B22b62126219241FbC7192/39VYxVsszSm1ONLuxJ9AO-NvVjQWoEKMNHHeMM9zxqw"><span data-contrast="none">new standard of market making</span></a><span data-contrast="auto">.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><span data-contrast="auto">Unlike proprietary trading, it does not require a loan. Strictly speaking, MMaaS does not provide liquidity. It is not even a financial service, but a liquidity </span><i><span data-contrast="auto">management</span></i><span data-contrast="auto"> solution. Similarly to “software as a service”, it gives access to the MMaaS provider’s trading infrastructure as well as the support of its sales and trading teams. So the provider does not make profits on trading, but on service fees — making it interested in the long-term success of its clients. An MMaaS provider cannot and would not trade against its client.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><span data-contrast="auto">Using MMaaS, token projects can earn profits on market making, but they also own any losses from it — incentivizing more responsibility in the ecosystem.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><img class="size-full wp-image-204180 aligncenter" src="https://www.tbstat.com/wp/uploads/2023/01/In-text-table.png" alt="" width="1920" height="1080" /></p> <p><span data-contrast="auto">Flowdesk combines the strengths of the MMaaS model with institutional-grade prudence available to projects of all sizes:</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <ul> <li data-leveltext="●" data-font="Calibri" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;●&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">strict adherence to legal regulations,</span><span data-ccp-props="{&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:0,&quot;335559740&quot;:192,&quot;335559991&quot;:360}"> </span></li> <li data-leveltext="●" data-font="Calibri" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;●&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">rigorous due diligence checks,</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:192,&quot;335559991&quot;:360}"> </span></li> <li data-leveltext="●" data-font="Calibri" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;●&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">internal conflict-of-interest policies,</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:192,&quot;335559991&quot;:360}"> </span></li> <li data-leveltext="●" data-font="Calibri" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;●&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">focus on IT security, and</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:192,&quot;335559991&quot;:360}"> </span></li> <li data-leveltext="●" data-font="Calibri" data-listid="1" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;●&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><span data-contrast="auto">conservative risk management strategies.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559685&quot;:720,&quot;335559738&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:192,&quot;335559991&quot;:360}"> </span></li> </ul> <p><span data-contrast="auto">Flowdesk’s comprehensive, trustless MMaaS platform delivers higher capital efficiency coupled with full transparency. Its live dashboards allow asset monitoring and getting support in real time, anytime, anywhere in the world — while giving access to a full suite of </span><a href="https://www.flowdesk.co/crypto-services/otc-brokerage"><span data-contrast="auto">brokerage</span></a><span data-contrast="auto">, </span><a href="https://www.flowdesk.co/crypto-services/custody"><span data-contrast="auto">custody</span></a><span data-contrast="auto">, as well as </span><a href="https://www.flowdesk.co/crypto-services/treasury-management"><span data-contrast="auto">treasury management solutions</span></a><span data-contrast="auto"> as well.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><span data-contrast="auto">With Flowdesk, token projects can build sustainable markets autonomously. This is how we foster a responsible, secure, steadily growing digital asset ecosystem — to achieve the vision of a </span><a href="https://mirror.xyz/0x8fb8C9D663a137e544B22b62126219241FbC7192/gME0uYwvRZ-ZmwFV7AP22NRq2VKAjEPwjfYXtbds3M0"><span data-contrast="none">tokenized economy</span></a><span data-contrast="auto">, efficient, equitable, and accessible to all.</span><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><img class="alignnone wp-image-204019 " src="https://www.tbstat.com/wp/uploads/2023/01/1624523244983-450x450.jpeg" alt="" width="100" height="100" /></p> <p style="text-align: left;"><strong><i>About the author</i> </strong></p> <p><i><span data-contrast="auto">Guilhem Chaumont is the CEO and co-founder of Flowdesk, a global digital asset service and technology provider. He started his career as a trader at HSBC and holds graduate degrees in engineering and international finance. Prior to Flowdesk, he co-founded and served as the CEO of X-Network, an open-source private cryptocurrency after trading and mining bitcoin.</span></i></p> <p><strong><i>About Flowdesk</i> </strong></p> <p><i><span data-contrast="auto">Flowdesk is the leading Market Making as a Service (MMaaS) technology provider. MMaaS offers a new approach to managing liquidity on secondary markets. Crypto projects can bootstrap their own liquidity using Flowdesk’s MMaaS infrastructure and its trading team’s global coverage.</span></i><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><i><span data-contrast="auto">Founded in 2020, Flowdesk is based in Paris with offices in Singapore and expanding in the US for sales, trading, and regulatory coverage. In two years, the company scaled rapidly. This is due to the inherent scalability of its infrastructure and business model. It delivers subscription-based services that are agnostic to market risks as well as counterparty risks. </span></i><span data-ccp-props="{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:192}"> </span></p> <p><strong>Social Media: </strong></p> <p><a href="https://www.flowdesk.co/">Website</a> | <a href="https://www.linkedin.com/company/flowdesk-france/">LinkedIn</a> | <a href="https://twitter.com/flowdesk_co">Twitter</a> | <a href="https://mirror.xyz/0x8fb8C9D663a137e544B22b62126219241FbC7192">Mirror</a></p> <p><em>This post is commissioned by Flowdesk and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.</em></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>