Customizable liquidity provision strategies, who is Aperture’s MaaS suite suitable for?

What is MaaS?

Market Maker as a Service (MaaS) is a comprehensive set of tools designed to enhance on-chain liquidity provision for protocol owners. MaaS shares similarities with Aperture’s intentional liquidity management solution, but is tailored specifically to meet the needs of on-chain market makers. The platform boasts advanced enterprise-grade capabilities and is backed by a strong customer support service level agreement (SLA). MaaS offers a granular approach to liquidity management, providing protocol owners with advanced tools to optimize their market making strategies.

MaaS provides sophisticated on-chain inventory management, efficient market maker/underwriter position rebalancing, and advanced algorithmic trading tools to optimize liquidity provision and market making strategies.

Users of MaaS benefit from extraordinary flexibility, enabling precise granularity of control and customizable levels of hands-on management, including approaches ranging from highly engaged to largely automated.

Who is MaaS for?

MaaS is designed primarily for protocol owners at different stages of development, from pre-token launch to mature projects after token launch, this versatile platform can meet the evolving needs of protocols at different stages of growth and market presence.

No matter the stage of development, MaaS provides protocol owners with:

Customizable liquidity provision strategies

Real-time market analysis and response mechanisms

Risk management tools to deal with turbulent market conditions

Scalable solutions that grow with the needs of experimental solutions

By providing tailored solutions for different stages of protocol development, MaaS becomes a valuable asset for projects seeking to establish and maintain a strong market position throughout their lifecycle.

What are on-chain market makers?

For protocols and company owners considering on-chain market making, pooled liquidity market makers offer a powerful tool to improve capital efficiency and market depth. Using protocols such as Uniswap V3 as an example, you can concentrate liquidity supply within a specific price range where trading activity is most likely to occur.

By leveraging concentrated liquidity, users are more likely to earn higher returns on capital than with traditional automated market maker (AMM) models. However, this model requires more active management. You will need to regularly monitor market conditions and rebalance your positions to ensure your liquidity remains within the optimal price range. While this can improve performance, it also requires more sophisticated risk management strategies to mitigate potential impermanent loss.

Implementing centralized liquidity market making can significantly improve your protocol’s transaction efficiency, attract more users, and potentially increase fee revenue.

How MaaS Works

Overview of the Mechanism

Under MaaS, protocol owners deposit project tokens and ether or stablecoins into a vault hosted by Aperture. Assets can only be withdrawn by protocol owners. Aperture’s sole role is to manage liquidity and inventory as directed by the protocol. Assets are then split into two parts: inventory and active liquidity.

MaaS will be responsible for dynamically maintaining a certain level of liquidity in the market based on the preferences of protocol owners. Active liquidity is gradually rebalanced to achieve deep liquidity around the current pool price at a ratio of 50-50 (ether/stablecoin - project token).

Inventory changes as liquidity changes

Maker and taker position rebalancing

Aperture MaaS provides enterprise-grade flexibility to protocol owners by supporting both maker and taker rebalancing strategies.

Market maker rebalancing is a method of acquiring tokens required for rebalancing without occupying existing liquidity. Instead, tokens are passively converted by providing liquidity in an automated market maker (AMM). This approach enables efficient rebalancing without incurring invisible losses.

When market conditions require swift action, users can initiate market maker rebalancing by leveraging existing liquidity in on-chain venues. This approach is primarily suitable for situations where time is of the essence and achieving impermanent loss is acceptable.

Algorithmic Trading Tools

Algorithmic Trading Tools are part of the MaaS tool suite and can better help protocol owners manage inventory. Users can use TWAP (price weighted average price) or VWAP (volume weighted average price) functions to acquire or liquidate assets through market makers or underwriters in AMM.

This article comes from a contribution and does not represent the views of BlockBeats