Efficient Frontier Market Making Weekly Report April 2nd 2024

From KuCoin founders being charged with conspiracy to commit fraud (& other allegations) and SBF getting 25 years. It has been a crazy week. The highlight though is that we really are at the whim of both leverage traders and the ETF at the moment. Every day there are net outflows, bitcoin price is cratering and feeding into the rest of the market. That said, fundamental liquidity is still strong.

Following hitting an all time high, there has been a drop in the price of SSV. Though, SSV is up 37% in the last month.

  • In the last 7 days, SSV is down 20+%

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
*The price movement and comparison can be referenced on CoinGecko under “How does the price performance of SSV Network compare against its peers?” SSV Network Price: SSV Live Price Chart, Market Cap & News Today | CoinGecko

  • Efficient Frontier will look to increase our market share so that we can provide extra support STAY TUNED FOR NEXT WEEKS REPORT

  • Volumes have dropped across the board

  • Below is the average liquidity for the week. 2% = ±1%, 4% = ±2%, 8% = ±4%
  • A positive note is that liquidity has remained stable.

Spreads for the previous week.

  • This is the % of time EF kept spreads from bid-ask at 75bps or better.
  • Note that Kucoin uptime is 0% as we have not re-entered the market. We exited the market to prevent any losses to the DAO. We have been controlling spreads.
  • We will be gradually re-entering in the next few days

Please follow market spreads either on the exchanges or Coingecko/Coinmarket cap to validate that our spreads are remaining below the agreed upon KPI

This does not include liquidity & trading in the V3 pool
Our aim is to continue to incentive volume and sustained trading health in the SSV market while remaining as transparent as we can with community members.