Moret: Liquidity pools
In option space, market makers provide liquidity to both sides of the market and gain profit by taking spreads and managing residual risks. Risk management usually involves adjusting the balance sheet by trading underlying assets or derivatives according to the price movements.
Each market maker will have their own algorithm to 'hedge' the residual risks. Therefore Moret gives liquidity providers the flexibility to create liquidity pools for an underlying assets (ETH or BTC), customise the pricing parameters in AMM, and 'plug-in' their bots to place instruction to the liquidity pool to trade assets via 1Inch Aggregation protocol.
Three pillars of liquidity pools in Moret
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