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Looking for deep liquidity? Look no further
We are a team of exceptional engineers, physicists and professional market experts. Our unique combination of skills allows us to design and build digital solutions that are mathematically stable and technically robust. We have been developing software for crypto trading infrastructure since 2020.
Our expertise, diligence, risk management and transparency practices stem from the traditional markets where we were market makers long before starting VelvetFormula. Our uncompromising approach allowed us to build scalable and antifragile solutions to hit client's liquidity targets.
VelvetFormula is one of the most advanced software providers in crypto market making
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6+
Years in Crypto
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1000+
Trades per minute
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50+
Clients
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1000+
Bots are running at the same time
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10 GB
Of market trading data gathered per day
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1000+
Bots are running at the same time
Feel the difference. Make it right.
Reach your goals with us
Exchanges
Market makers benefit exchanges by improving market liquidity, facilitating efficient price discovery, and reducing bid-ask spreads. Their continuous quoting of buy and sell prices attracts more participants, leading to higher trading volumes. Market makers also help maintain market stability by absorbing temporary imbalances in supply and demand.
Token projects
Market makers aid token projects in achieving success by providing liquidity, stability, and attracting investors. They ensure that there is a constant market for the token, reducing price volatility and instilling confidence in investors. By establishing initial trading patterns and market depth, market makers lay the groundwork for the token's growth and wider adoption.
Launchpads
Launchpads benefit from collaborating with market makers as it enhances liquidity, reduces price volatility, and attracts more investors to newly launched tokens. By providing a ready market and promoting price stability, market makers create a favorable trading environment that fosters confidence and participation from retail and institutional investors. This partnership ultimately increases the chances of success for token projects and facilitates their growth in the market.
VC Funds
Interacting with market makers benefits venture capital funds by providing liquidity for their investments, enabling efficient portfolio management and profitable exits. Market makers also offer valuable market insights, assisting in informed investment decision-making and assessing market conditions. Additionally, they aid in accurate valuation of securities, optimizing exit strategies and enhancing overall fund performance.
Exchanges
Market makers benefit exchanges by improving market liquidity, facilitating efficient price discovery, and reducing bid-ask spreads. Their continuous quoting of buy and sell prices attracts more participants, leading to higher trading volumes. Market makers also help maintain market stability by absorbing temporary imbalances in supply and demand.
Token projects
Market makers aid token projects in achieving success by providing liquidity, stability, and attracting investors. They ensure that there is a constant market for the token, reducing price volatility and instilling confidence in investors. By establishing initial trading patterns and market depth, market makers lay the groundwork for the token's growth and wider adoption.
Launchpads
Launchpads benefit from collaborating with market makers as it enhances liquidity, reduces price volatility, and attracts more investors to newly launched tokens. By providing a ready market and promoting price stability, market makers create a favorable trading environment that fosters confidence and participation from retail and institutional investors. This partnership ultimately increases the chances of success for token projects and facilitates their growth in the market.
VC Funds
Interacting with market makers benefits venture capital funds by providing liquidity for their investments, enabling efficient portfolio management and profitable exits. Market makers also offer valuable market insights, assisting in informed investment decision-making and assessing market conditions. Additionally, they aid in accurate valuation of securities, optimizing exit strategies and enhancing overall fund performance.
Crypto Liquidity Provider for Token Projects and Exchanges
A liquidity provider is a market participant, who facilitates trading by offering to both buy and sell a particular asset at quoted prices. This means that they are effectively creating a market for the asset by providing continuous bid and ask prices that market participants can trade against.
Market making in crypto is the process of providing liquidity for a specific token, cryptocurrency or an exchange by placing both buy and sell orders. A crypto liquidity provider uses advanced algorithms to analyze market data and then places orders accordingly. They then monitor the order book and adjust their orders in response to changes in the market, benefiting their clients, and contributing to a more efficient market.
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Offering fully comprehensive and trusted crypto liquidity solutions
As a liquidity provider, we at VelvetFormula offer:
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Algorithmic trading. Using advanced algorithms to analyze market data and place orders accordingly, thereby optimizing trading strategies and improving the overall efficiency of the market.
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Order Book Monitoring & Diversification. Monitoring the order book and adjusting orders in response to market changes, as well as diversifying over multiple assets
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Risk Management & Compliance. Combining a variety of risk management techniques to minimize potential losses
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Transparency We are fully transparent with our crypto market making strategies and risk management techniques, harboring trust between us and our users.
How do crypto liquidity providers work?
Market making in crypto is the process of providing liquidity for a specific token or cryptocurrency on a crypto exchange by placing both buy and sell orders.
How do market makers add liquidity?
A cryptocurrency liquidity provider, or market maker, is a cryptocurrency trading firm or individual that buys and sells securities for their own account. Their activity increases liquidity in the market and the trading volume to an extent, which is enough for investors to trade comfortably. In the absence of market makers, traders who want to sell their assets wouldn’t be able to solve trading position issues due to a lack of buyers. The cryptocurrency liquidity provider is basically the one who balances the market.
It works as follows:
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Liquidity provider in crypto displays buy and sell quotations for a certain number of shares
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Once a buy order is received, the market maker sells from his own share holdings to complete the order
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The cryptocurrency liquidity provider is compensated for the risk (since the asset can fluctuate in price), in the shape of being allowed to offer quotes in the market, consisting of the buy and sell prices quoted together. This difference (also known as the spread) is the market maker’s profit
All in all, market makers reduce the time needed to execute trades, as well as transaction costs, while increasing market volume and making for a healthier market environment.