Implementing Efficient Market-Making Strategies — A Masterclass

A masterclass on unlocking the secrets to successful market-making strategies for your web 3.0 startup — Video link attached.

4 min readAug 20, 2024

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This masterclass covered the intricate details of market-making within the context of Web 3.0 environments. Led by Gleb Gora from Vortex, the session provided insights into the evolution of market-making strategies from traditional models to more complex and dynamic Web 3.0 frameworks.

This was the 7th Masterclass under the Pivot 0xHub initiative. These masterclasses are free for all in the web 3.0 space and are designed to empower, educate & inspire a diverse audience of startups, current & aspiring founders, entrepreneurs, developers & enthusiasts in general in the rapidly evolving web 3.0 landscape.

Know Your Mentor

Gleb Gora, Co-Founder & CEO, Vortex Foundation

This masterclass session was led by Gleb Gora, Founder & CEO, Vortex Foundation. Gleb started his journey in crypto since 2017 and participated in multiple ventures before starting Vortex, including NFT launchpads, multiple other market making teams. After sees multiple areas of improvement in the MM space, he started Vortex in 2019 and made it to be a full-fledged market making by 2021, focusing on it full time. As of today, Vortex is a team of 50+ people and has over 180+ clients. The company also plans to start offering loan-based and HFT solutions by 2025.

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Masterclass Video

Check out the full masterclass video including the Q&A session.

Key Topics Discussed

Introduction to Market Making

Definition: Market making involves maintaining liquid and efficient markets by providing buy and sell orders, crucial for all market types and especially volatile ones.
Importance: Over 90% of liquidity is provided by market makers, emphasizing their role in creating organic volumes and stabilizing prices.

Types of Market Making

Loan-based Market Making: Traditional model where the market maker provides liquidity with their capital in exchange for returns on spreads and trades.
Retainer Market Making: A more flexible and modern approach where the market maker uses project funds to manage liquidity, allowing for shared profit strategies and enhanced liquidity provisions.

Strategic Market Making Approaches

Profit-making Strategies: Aimed at maximizing returns through keen market insights and timing.
Price and Market Cap Support: Focuses on stabilizing and potentially increasing the market cap through strategic buy and sell orders.
Hybrid Strategies: Combination of profit-making and support strategies to balance market stability with profitability.
Neutral Strategies: Providing liquidity without direct profit motives, ensuring fair trading conditions and market efficiency.

Case Studies

Market Making Case study — Positive results

Established Project: Demonstrated a significant increase in trading volumes and market cap from strategic market making, enhancing both liquidity and token price.
Early-Stage Project: Showcased the benefits of quality liquidity distribution on launch, leading to substantial profit and above-target KPI achievements.

Impact and Outcomes

The masterclass successfully delineated the transformative impact of advanced market-making strategies in Web 3.0. It highlighted the necessity for continuous adaptation and innovation in liquidity strategies to foster a stable yet dynamic market environment.

About Pivot

Pivot is a global venture accelerator firm dedicated to the Web 3.0 industry, created by founders, for founders. Pivot’s selected startups are focused on milestones & are not bound to periodic curriculum-based programs. Founded by Anshul Dhir, a 3x founder in the Web 3.0 space, and mentor and investor in over 50 companies in Web3. Pivot is being supported by some great founders & Angels in this industry including Polygon, Delphi Digital, Blockchain Founders Group, Liminal, Biconomy, BitsCrunch, Tegro, Router, QuickSwap & more. We are also supported by Tier 1 ecosystems such as BNB Chain, Polygon, Arbitrum, ICP, Manta Network, Mantle apart from many VCs, launchpads, Exchanges & many more.