Efficient Frontier Market Making Weekly Report November 7th

SSV has outperformed a very hot market this week! Up double digits and liquidity starting to increase.

BTC, and recently ETH, have been riding a good wave. We have just experienced the 2 biggest weeks of capital inflows into crypto since August 2022. The market liquidity has started moving down to alts now too.

We are working to strengthen the liquidity to elongate this positive momentum. We have doubled our depth in the Binance and OKX pairs within 4% now. There is a strong balanced book of maker orders on the buy & sell side now across all exchanges we are MMing

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

  • Volumes have increased.

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. EFs uptime ~98%

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.

Our aim is to continue to incentive volume and sustained trading health in the SSV market. Efficient Frontier appreciate the community’s recent feedback and are attentive to the concerns raised about our role as market makers.


Thank you @Johnny_Orli_MM for updating us weekly
But I was expecting you to give an answer here
Someone openly called you guys out on the forum and that means you should give some answers

Copying my response about this issue from Discord:

I think the primary issue here is that people are blaming the price drop on the MM, which is completely misplaced.

Please remember that Market makers (like Efficient Frontier) are here to provide a favourable environment for trading (Depth, tight spread and liquidity).

The role of a MM is exactly this. They are not hired to influence price. They are hired to provide liquidity and increase market depth (i.e. they make the buying and selling of the token more efficient for everyone by tightening the spread and lessening slippage). The metrics we should judge them on are the things they present in their weekly updates: average spread and bid/ask depth (they use “4% liquidity” across all exchanges, and “2% liquidity” for individual pairs).

In my opinion, they don’t even have the ability to influence price significantly in the first place (at least not without throwing away their money).

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Yes @fod I completely understand you
The duty of MM is to provide liquidity
And not to manipulate price
I only called his attention so he could have at least given an answer since he is the MM

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