Wintermute Co-founder: When prices rise, market makers usually sell in CeFi and buy back in DeFi
ChainCatcher news, Wintermute co-founder Yoann Turpin shared his views on price discovery and market neutrality. He pointed out that price discovery is the process by which the market continuously seeks the true price of an asset, primarily occurring in CeFi and OTC markets in the crypto space, while being relatively rare in DeFi, only appearing during the launch of token supplies, such as on platforms like Pump.fun. Due to the small scale of tokens, Wintermute did not participate in these.Market neutrality refers to participants not profiting from price fluctuations, a strategy that helps market makers maintain inventory balance. When prices rise, market makers typically sell in CeFi and buy back in DeFi; conversely, they buy in CeFi and sell back in DeFi, ensuring that the prices paid by all market participants are roughly the same.Turpin also stated that while supporting the DeFi ecosystem, significant improvements in user experience are needed to achieve more price discovery, and new users should be prioritized in entering the DeFi space.