MARKET MAKER PROVIDERS
Liquidity as a network service.
Kronex is designed to support independent financial providers offering liquidity, escrow and execution services inside the network economy.
01 · WHAT THIS PROVIDER DOES
What this provider does
Market Makers can provide liquidity between assets and Kronex resource markets.
This makes it possible for users to access infrastructure without manually acquiring a specific settlement asset first.
02 · HOW ROUTING WORKS
How routing works
Liquidity itself becomes a provider market.
03 · REQUIREMENTSSpecification pending
Requirements
Indicative until specified. These are the categories a market maker is expected to satisfy, not the values it must meet.
- Pairs
- Which assets a provider quotes between and the resource markets it serves.
- Depth
- How much a provider stands behind at a quoted price.
- Availability
- How reliably a quote is present when an order needs one.
- Collateral
- What is staked against a quote once it is routed.
Requirements will be published with the provider framework.
04 · HOW IT IS PAID
How it is paid
A market maker earns the spread on the liquidity it routes. Routing fees are one of the protocol's fee sources.
05 · HOW IT IS MEASURED
How it is measured
Market Makers compete based on:
- price
- spread
- depth
- availability
- execution quality
Applications can automatically choose providers according to their own requirements.
06 · RISKS AND OBLIGATIONSSpecification pending
Risks and obligations
A provider stakes collateral and stands behind a quote once it is routed. A quote that is withdrawn after routing, or not honoured, exposes the provider to economic penalties where appropriate.
The penalty mechanism is not designed.
- collateral at stake
- quotes stood behind once routed
- penalties where appropriate
07 · ROADMAP DEPENDENCY
Roadmap dependency
Phase 5
Financial Provider Networkplanned
enable independent financial services inside the Kronex economy
- escrow providers
- market makers
- OTC providers
- liquidity routing
- provider collateral
- RFQ markets
08 · WHY IT MATTERS
Why it matters
Liquidity itself becomes a provider market.
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