Market makers stay behind the success of some of the very most successful unicorns and almost all cryptocurrency related projects. Market makers' main focus is to steadfastly keep up liquidity, depth, and spread among markets to be able to provide buyers and sellers with the maximum possible opportunity to trade a certain financial product or an asset.

Now, let's have a closer look at how market makers work and how they make profit:

Let's use the example of a fresh project called Mango Finance. Mango Finance just finished their ICO(Initial Coin Offering) and their token is now tradable on the DEX (Decentralized Exchange) Pancakeswap.

To be able to create healthy volume and  a cost action, Mango Finance hired a market maker firm. The marketplace maker creates volume and the firm also sells Mango Finance tokens to be able to generate a healthy income for itself. However, Mango Finance pays this market maker over $6,000 each month and pays 3% of all tokens sold, which is really a hefty price crypto market making firm. Furthermore, Mango Finance is wholly influenced by the availability with this market maker. Mango Finance also really wants to make use of this market maker to market the tokens of their private investors. For this industry maker is charging additional monthly fees.

Mango Finance is losing control over its markets, its private sale investors, and is paying hefty monthly fees for it.

As you can see from the above mentioned example, automated market makers have been a good help to crypto startups, but their services may end up being quite costly. This is why firms have been looking for market making alternatives and Avatea aims to assist unicorns and startups with exactly just that.

Mango Finance now turns to the Avatea protocol. Selecting a decentralized market making bot. By connecting to the platform different market making algorithms become available which is often activated by staking their native token and a matched token such as for example BUSD or BNB. Mango Finance is now able to manage their market making activities completely by themselves, choosing and changing the required volume, price action, and buy/sell orders each time they want 24/7.

Mango Finance now pays a minor fee to the protocol, this fee is used to get back the native Avatea token.

You can find out about the Avatea protocol and how it works here.