DeFi Education • 719 implied HN points • 12 Jul 24
- Market makers provide liquidity by buying and selling tokens, improving trading efficiency. They help reduce transaction costs for traders.
- Projects hire market makers for better market visibility and tighter price spreads. This makes investors feel more confident when buying tokens.
- Market making can be risky and not always profitable. Market makers try to manage risks while looking for ways to profit from fees or token options.