Customizable liquidity supply strategies, who is Aperture's MaaS suite suitable for?
The advanced features of the MaaS suite include customizable mobility supply strategies, real-time market analysis and response mechanisms, advanced risk management tools, and scalable solutions that grow with the demands of the agreement.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 solutions, but it is specifically tailored to meet the needs of on-chain market makers. The platform features advanced enterprise-level capabilities and is backed by robust customer support service level agreements (SLAs). MaaS offers a refined approach to liquidity management, providing protocol owners with advanced tools to optimize their market-making strategies.
MaaS provides complex on-chain inventory management, efficient market maker/underwriter position rebalancing, and advanced algorithmic trading tools to optimize liquidity supply and market maker strategies.
Users of MaaS benefit from extraordinary flexibility, allowing for precise control granularity and customizable practice management levels, ranging from high engagement to basic automation.
Who is MaaS for?
MaaS is primarily designed for protocol owners at various stages of development, from pre-token launch to mature projects post-token launch. This versatile platform can meet the evolving needs of protocols at different stages of growth and market share.
Regardless of the development stage, MaaS can provide protocol owners with:
- Customizable liquidity supply strategies
- Real-time market analysis and response mechanisms
- Risk management tools to cope with volatile market conditions
- Scalable solutions that grow with experimental program demands
By offering 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 is an On-Chain Market Maker?
For protocols and company owners considering on-chain market making, centralized liquidity market makers provide a powerful tool to enhance capital efficiency and market depth. For example, with protocols like Uniswap V3, you can concentrate liquidity provision within specific price ranges where trading activity is most likely to occur.
Compared to traditional automated market maker (AMM) models, utilizing concentrated liquidity allows users to achieve higher capital returns. However, this model requires more active management. You need to regularly monitor market conditions and rebalance your positions to ensure your liquidity remains within optimal price ranges. While this can improve performance, it also necessitates more complex risk management strategies to mitigate potential impermanent loss.
Implementing centralized liquidity market making can significantly enhance your protocol's trading efficiency, attract more users, and potentially increase fee revenue.
How MaaS Works
Mechanism Overview
Under MaaS, protocol owners deposit project tokens and Ether or stablecoins into an Aperture-managed vault. Assets can only be withdrawn by the protocol owner. Aperture's sole role is to manage liquidity and inventory according to the protocol's instructions. The assets are then divided into two parts: inventory and active liquidity.
MaaS will dynamically maintain a certain level of liquidity in the market based on the protocol owner's preferences. Active liquidity is gradually rebalanced to achieve deep liquidity at a 50-50 (Ether/stablecoin - project token) ratio near the current pool price.
Maker and Taker Position Rebalancing
Aperture MaaS provides enterprise-level flexibility for protocol owners by supporting maker and taker rebalancing strategies.
Market maker rebalancing is a method of acquiring the tokens needed for rebalancing without occupying existing liquidity. Instead, tokens are passively converted by providing liquidity in an automated market maker (AMM). This approach effectively achieves rebalancing without incurring impermanent loss.
When market conditions require swift action, users can initiate market maker rebalancing by leveraging existing liquidity in on-chain venues. This method is primarily suited for time-sensitive situations, where incurring impermanent loss is acceptable.
Algorithmic Trading Tools
Algorithmic trading tools are part of the MaaS toolkit, designed to better assist protocol owners in managing their inventory. Users can utilize TWAP (Time Weighted Average Price) or VWAP (Volume Weighted Average Price) features to acquire or liquidate assets through market makers or underwriters in the AMM.
