What We Do

Crypto Market-Making

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Caladan offers crypto market-making services that leverage our experience as a cryptonative trading group that has traded 1000+ tokens and billions per day. Our clients benefit from the same low-latency infrastructure, finely tuned algorithms, and breadth of connectivity across both centralised and decentralised exchanges that have kept us profitable every single day since 2017. We work with tokens and exchanges to overcome the cold start problem, deepen liquidity, and enable efficient price discovery.

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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.

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.

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. 

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

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

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.

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