Efficient Frontier Market Making Weekly Report April 25th

[ZFrotnier]

SSV community, find below the market-maker performance update.

Ether erases all gains from the Shanghai rally as Bitcoin and other crypto prices also fall.

The price of SSV has moved in correlation to competitive markets dropping 24.1% in the last 7 days. This is similar to LDO which dropped 19% and FXS that moved 22.8%. Despite the downward price trend, volume has improved from the previous week.

A few notes to explain what you are seeing:
• “7d Avg Spread” is the average spread from the best performing spread market (Binance USDT pair).
• “4% Liquidity” is ±2% from midprice liquidity sitting in the books across all exchanges
• In the individual pairs, the “2% Liquidity” is ±1% from the midprice liquidity sitting in that individual pair

Marketshare for the previous week:

Spreads for the previous week.
This is the % of time EF kept spreads from bid-ask at 75bps or better.

This does not include liquidity & trading in the V3 pool, as well as the hedging activity in Binance USDT pair.

Our aim is to continue to incentive volume and sustained trading health in the SSV market.

[BenAffleck]

Thank you again for the report!

Can you please clarify why you consider FXS a benchmark and what other projects could be added to the comparison?

Thank you!

[ZFrotnier]

Hey Ben,

The reason that FXS, LDO and RPL were chosen is because they are categorized under “Liquid Staking Governance Tokens”

We can chose an alternative 3 if preferred by the community as seen in the example attached below.

This comparison chart is a feature that was created as a tool for the project to understand if the price is moving in correlation with other industry tokens or general market (depending which assets are chosen) and less for us as the MM.

Our job is to incentive volume and sustained trading health irrelevant of price sentiment…that being said, price movement will and does impact P&L, but we have different tools internally to monitor this.

Best,
EF Team