Who needs a crypto market maker?

Crypto market makers are essential for projects and platforms that aim to build reliable and liquid markets. Token teams often rely on market makers to provide consistent liquidity so buyers and sellers can trade without large price swings. Stablecoins benefit from liquidity support to help maintain their peg to fiat currencies through real-time supply and demand adjustments. Memecoins, which can experience sudden spikes in popularity, also require market makers to prevent extreme volatility. New exchanges, including centralized and decentralized platforms, work with crypto trading firms to bootstrap liquidity and create a seamless trading experience. Without liquidity, users face wide spreads and poor execution, which reduces confidence in the platform. For any serious crypto project, partnering with an experienced crypto market making firm is a key step toward launching and scaling successfully. Caladan also offers algorithmic trading solutions designed to adapt to fast-moving markets and evolving token strategies.

How do I select a market-maker?

Selecting the right crypto market-maker depends on a thorough understanding of your token project’s specific liquidity needs and growth goals. First, consider the unique requirements of your digital assets and the desired market conditions, such as trading volume, spread, and volatility management. It’s essential to negotiate KPIs with potential crypto market-makers to ensure alignment with your project’s objectives—common KPIs include metrics like spread maintenance, volume targets, and uptime on exchanges. The crypto market-maker you choose will also be dependent on which centralized exchange they market make on, as well geographic regions. Some crypto market-makers serve specific countries, such as Korea, that require additional regulation. Additionally, you’ll need to choose between a retainer model, where the crypto trading firm is paid a fixed fee, or a performance-based options model that may offer incentives based on achieved liquidity targets. A well-suited market-maker can drive the sustainable liquidity your project needs to thrive across exchanges and support your digital asset’s long-term success in the market.

Why work with Caladan as your crypto market maker?

Working with Caladan as your crypto market-maker offers unparalleled advantages for projects aiming to ensure robust liquidity and stability, even during periods of high volatility and market stress. Caladan’s proven ability to meet and exceed KPIs allows projects to maintain liquidity and price consistency, essential for building investor confidence and supporting long-term digital asset growth. With connectivity to over 70 centralized and decentralized exchanges, Caladan’s extensive reach provides seamless access to global markets, enabling efficient and resilient trading environments. Beyond market-making, Caladan also offers a range of other crypto financial services tailored to support the evolving needs of projects in the digital asset space. This holistic approach aligns Caladan with the project’s goals, ensuring not only immediate liquidity support but also strategic partnership for long-term success.

What is the strategic importance of liquidity in digital asset markets and how does Caladan contribute to it?

As a crypto trading firm and market-maker, Caladan ensures smooth and efficient transactions, which are essential for market stability and growth. Beyond market-making, Caladan is deeply embedded in the broader crypto ecosystem, engaging in a variety of on-chain activities such as data provisioning, validator operations, and sequencer management. This involvement helps maintain the robustness and reliability of blockchain networks. Moreover, Caladan holds influential roles on several councils and DAOs, driving forward policies and initiatives that shape the future of digital assets. Through its comprehensive participation, Caladan not only bolsters liquidity but also actively contributes to the innovation and integrity of the digital asset ecosystem.

What is Digital Asset Trading?

Digital asset trading refers to the buying, selling, and exchanging of digital assets through online platforms. These assets can include cryptocurrencies, tokenised securities, non-fungible tokens (NFTs), and other blockchain-based financial instruments. They are commonly traded on Centralised Exchanges (CEXs), Decentralised Exchanges (DEXs), hybrid exchanges, Over-the-Counter (OTC) Trading, and derivatives & futures exchanges.

What We Do

Crypto Market-Making

Management Guide

How Market-Making Works

Management Guide

Marketplace Design

Management Guide

How to Work with a Market-Maker

Management Guide

Crypto Marketplaces

Caladan provides institutional-grade crypto market making services to token projects and exchanges worldwide. As a crypto-native market making firm, we’ve handled over 1,000 tokens and billions in daily volume using advanced algorithms, low-latency infrastructure, and deep exchange connectivity. Since 2017, we’ve delivered consistent performance across 70+ centralized and decentralized exchanges — helping clients solve the cold start problem, deepen liquidity, and improve price discovery. Whether you’re launching a new token or expanding exchange operations, Caladan is a trusted partner in cryptocurrency market making.

Content

Pioneering Market Making in the Cryptocurrency Frontier

Caladan’s crypto market-making services are powered by a cryptonative trading team of crypto market makers that has handled over 1,000 tokens and managed billions in daily volume. Our clients benefit from the same low-latency infrastructure, advanced algorithms, and extensive connectivity across both centralized and decentralized exchanges that have kept Caladan profitable every day since 2017. By leveraging these assets, we help tokens and exchanges solve the “cold start” problem, enabling deep liquidity from day one and facilitating efficient price discovery across the cryptocurrency market making ecosystem.

Caladan is known for pioneering techniques that have set new standards in market-making services for crypto, positioning us at the forefront of the industry. Our approach emphasizes continuous innovation, ensuring our strategies adapt to and shape evolving market conditions. Through our integration with over 70 centralized and decentralized exchanges, we embody the philosophy of “access as alpha.” This extensive exchange reach allows us to deliver enhanced liquidity solutions and implement strategies that maximize market efficiency, giving our clients a competitive edge. By combining technical expertise with robust exchange access, Caladan is a trusted partner in market making, providing sustainable growth for projects across the digital asset landscape.

Aligned Expertise

We build technology to trade on the blockchain

Structured Products

Structuring bespoke options products for token foundations and institutional investors.

DeFi Solutions

Actively managing liquidity in top DeFi pools with institutional strategies and automated capital deployment.

API Liquidity

Efficient execution and programmatic access to deep, two-way liquidity across digital assets.

Investments

Investing in pre-seed and seed stage companies across blockchain infrastructure, DeFi, analytics, and security.

FAQ

What is crypto market making?

Crypto market making involves continuously placing buy and sell orders on cryptocurrency exchanges to enhance liquidity, reduce price volatility, and enable efficient trading. Market makers help narrow the bid-ask spread, increase trading volume, and stabilise asset prices. This process enhances liquidity, minimises price slippage, improves market efficiency, and fosters a better trading experience.

What role do market makers play in crypto arbitrage?

Market makers specialize in crypto arbitrage by providing consistent liquidity across multiple exchanges, reducing price discrepancies, and narrowing bid-ask spreads. Their role in maintaining an efficient order book helps stabilise prices and corrects differences between exchanges quickly, promoting overall market efficiency.

How do market makers manage counterparty risk in DeFi market making?

Counterparty risk refers to the possibility that one party in a transaction may fail to fulfill its contractual obligations, leading to financial losses. In DeFi market making, this risk can arise from protocol failures, smart contract vulnerabilities, or counterparty defaults.While counterparty risk can never be completely eliminated, it can be mitigated by:

Conducting thorough KYC
Managing risk and avoiding overleverage
Ensuring all parties have sufficient liquidity to fulfill obligations

What criteria are used to evaluate the viability of a new token for market making?

These are the criteria used:

Liquidity and trading volume
Token utility and demand
Exchange listings and market access
Volatility and risk assessment
Community and developer support
Regulatory compliance

What metrics do market makers track to measure the success of their strategies?

Crypto market makers measure the success of their strategies using key metrics such as bid-ask spread, trading volume, order book depth, price impact, inventory turnover, and profit & loss analysis. A narrower spread indicates efficiency, higher volume signals strong liquidity, and a deeper order book ensures price stability. Low slippage improves the trading experience, while inventory turnover optimises capital use, and P&L analysis ensures financial sustainability.

What crypto market making strategies are used at Caladan?

Our strategies include continuous order book management, arbitrage across multiple venues, and risk-adjusted position balancing. By integrating with 70+ exchanges, we maximize liquidity while minimizing market impact. Our proprietary technology ensures fast execution and real-time risk controls, delivering sustainable growth for your project.

How does Caladan solve the cold start problem in crypto market making?

Since 2017, Caladan has successfully supported over 1,000 tokens, deploying sophisticated trading algorithms and leveraging deep exchange connectivity. Our extensive infrastructure enables immediate liquidity provision, helping your token gain market traction quickly and efficiently.

What are the best crypto market making services?

Top services provide deep liquidity, multi-exchange access, advanced algorithms, risk controls, and 24/7 client support — qualities Caladan consistently delivers.

Crypto Market-Making

How Market-Making Works

Marketplace Design

How to Work with a Market-Maker

Crypto Marketplaces

Pioneering Market Making in the Cryptocurrency Frontier

Aligned Expertise

We build technology to trade on the blockchain

Structured Products

DeFi Solutions

API Liquidity

Investments

FAQ

What is crypto market making?

What role do market makers play in crypto arbitrage?

How do market makers manage counterparty risk in DeFi market making?

What criteria are used to evaluate the viability of a new token for market making?

What metrics do market makers track to measure the success of their strategies?

What crypto market making strategies are used at Caladan?

How does Caladan solve the cold start problem in crypto market making?

What are the best crypto market making services?

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