Market makers stay behind the success of some of the very successful unicorns and nearly all cryptocurrency related projects. Market makers' main focus is to keep liquidity, depth, and spread among markets in order to provide buyers and sellers with the maximum possible chance 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 brand new project called Mango Finance. Mango Finance just finished their ICO(Initial Coin Offering) and their token has become tradable on the DEX (Decentralized Exchange) Pancakeswap.

To be able to create healthy volume and  a price action, Mango Finance hired a market maker firm decentralized market making. The market maker creates volume and the firm also sells Mango Finance tokens in order to generate a healthier income for itself. However, Mango Finance pays this market maker over $6,000 per month and pays 3% of most tokens sold, which is a hefty price. Furthermore, Mango Finance is completely determined by the availability with this market maker. Mango Finance also desires to make use of this market maker to offer the tokens of these private investors. With 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 will see from the aforementioned example, automated market makers have been a great help to crypto startups, but their services may turn out to be quite costly. This is the reason 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. Choosing 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 has become able to manage their market making activities completely on their own, choosing and changing the specified volume, price action, and buy/sell orders when they want 24/7.

Mango Finance now pays a minimal fee to the protocol, this fee can be used to purchase back the native Avatea token.

You can learn more about the Avatea protocol and how it works here.