Market Makers Face Up to 30% Profit Loss
Crypto market makers are navigating significant changes in the wake of FTX’s bankruptcy, leading them to put more emphasis on risk mitigation.
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Liquidity providers like Auros and GSR Markets Ltd have shifted their approach by moving away from holding digital assets on centralized exchanges. Instead, they now opt for borrowing tokens and placing them on specific platforms.
While this strategy reduces overall risks, it also results in a reduction of their potential profits by 20-30%.
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