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Orderly Network’s NEAR instance winds down on Sept. 18.
WITHDRAW ASSETS
Sep 27, 2024
Ecosystem Spotlight
What does it take to get a market maker behind your Web3 project?
by Orderly Network
What does it take to get a market maker behind your Web3 project?

Exploring DWF Lab's role in Orderly's Stellar liquidity infrastructure

In DeFi, liquidity is king, and Orderly Network has rapidly ascended to become one of the largest liquidity sources in Web3.

In just two years, we've become one of the largest liquidity sources in DeFi, providing institutional-grade liquidity across multiple chains. Our omnichain liquidity infrastructure ensures seamless, high-speed trading for perpetual assets, bringing DeFi a step closer to achieving a CEX-like trading experience with self-custody at its core.

One of the key partners driving our growth is DWF Labs, a new generation Web3 market maker whose expertise and resources have been instrumental in building our liquidity infrastructure.

Market makers play a crucial role in the Web3 ecosystem by providing liquidity to decentralized markets, supporting efficient asset trading, even in volatile conditions. For example, DWF Labs has positioned itself as a next-generation market maker, with deep expertise in Web3, playing a vital part in supporting Orderly Network's liquidity infrastructure. Their involvement helps promote stable trading environments by making it easier for buyers and sellers to complete transactions without large price fluctuations. This activity contributes to the overall health and accessibility of decentralized markets across multiple blockchain networks.

DWF Labs has carved a niche for itself as a premier market maker, supporting 35% of CoinMarketCap’s Top 1000 projects. Their experience in high-frequency trading and liquidity provision makes them the ideal partner for Orderly Network's infrastructure.

Now, we make it easy for anyone to build a perpDEX without worrying about where the liquidity comes from. We call it “permissionless building” – the freedom to design a DEX to your liking .

Ask Veeno, an experienced developer who built a DEX on Orderly, just how he wants it. Once launched, he's got access to more than 50+ markets listed on Orderly, powered by a robust network of market makers.

While our use case for market makers extends beyond traditional models—given our mission to facilitate omnichain trading across various venues and assets—projects looking to launch tokens can also benefit significantly from engaging a market maker. A reliable partner like DWF Labs can offer:

  • Sufficient Liquidity: Market makers provide liquidity to ensure that your token can be traded smoothly, even during periods of volatility. This reduces the risk of excessive price slippage, allowing users to buy and sell at prices that reflect actual market demand, fostering confidence and stability in your token.
  • Accurate Price Discovery: By maintaining a consistent presence in the market, market makers help balance supply and demand, which facilitates the establishment of fair, transparent pricing. This reduces the risk of extreme volatility and ensures that your token's value reflects the broader market dynamics, contributing to a sustainable token economy.
  • CEX Listing & TGE Support: Successfully navigating Centralized Exchange (CEX) listings and Token Generation Events (TGE) is complex but essential for long-term token success. Market makers like DWF Labs can guide you through these processes and provide needed insights and advisory to help ensure that you can focus on growth while navigating these critical milestones with confidence.

So what would a high-quality market maker look out for?

Several factors can determine whether your project captures a market maker’s interest. These factors may vary depending on individual MMs strategies, business model, or even risk appetite. While some of these variables may be outside your control, here are the non-negotiables that you can directly influence;

  • Clear Product-Market Fit (PMF): Perhaps a no-brainer, but demonstrating that there’s demand for your project’s solution is crucial. A project should demonstrate that its product solves a genuine problem in the market.
  • A Strong, Experienced Team: Let’s skip MMs for a sec –the entire Web3 industry is big on credibility. Market makers, like any major partner, want to see a team with the expertise and track record necessary to execute the project’s vision. It is absolutely vital that a strong, knowledgeable team is visible to both your community and any potential partners, including MMs.
  • Well-Defined Roadmap: Ideas don’t come out fully formed so while no roadmap is flawless, having a clear, transparent, and achievable plan builds confidence in your project’s long-term potential. A market maker needs to know that your project has a sustainable future.

From experience having multiple high-quality MMs behind Orderly, we’ve seen firsthand how these are non-negotiable aspects for any market maker looking to invest its resources into a project.

As DWF Labs is one of our top liquidity providers, we had the opportunity to ask them a few key questions to gain insight into their decision-making process when working with Web3 projects:

There are many Web3 projects springing up today. What main factors do you identify before working with a project?

At DWF Labs, we look for a combination of several factors before engaging with any Web3 project. Team quality is one of the most critical aspects—having a strong, experienced, and committed team is a key indicator of long-term success. We also examine project fundamentals, such as the technology, tokenomics, and overall market fit. Projects that address real-world problems and show the potential for mass adoption tend to stand out. Additionally, we consider community engagement and how actively the project interacts with and grows its user base. Finally, we assess the liquidity and market infrastructure, ensuring that it aligns with our capacity to provide support effectively.

How does DWF Labs distinguish itself from other market makers?

DWF Labs stands out through its comprehensive approach that goes beyond traditional market-making. We combine market liquidity provision with strategic advisory services, funding support, and global partnerships to help projects grow sustainably. Unlike many market makers, we don’t just focus on liquidity for token trading; we aim to build long-term value by offering holistic ecosystem support.

  • Personalised and comprehensive support: we have a dedicated team providing 24/7 support. Leverage an extensive global network of partners, from legal and audit firms to industry experts.
  • Amplify your reach: projects can leverage our network of top-tier KOLs and expert PR providers to amplify your brand's visibility and accelerate growth.
  • Be part of a collaborative growth hub - we have a Growing ecosystem with over 700+ partners. Be seamlessly connected with needed expertise to accelerate growth.
  • CEX Listing & TGE Advisory: Projects can also access comprehensive listing support, introductions to the world's biggest CEXs and strategic advisory on enhancing your project appeal for pre and post TGE.

We’re not just a market maker but also a collaborator and partner to our projects. We want to make sure that we are fully aligned and committed to the success of our partners.

The cost of engaging a market maker isn’t cheap. How does DWF help promising projects access high-quality market-making services?

We recognize that many promising projects, especially early-stage ones, may face budget constraints when it comes to engaging market makers. We take a tailored approach, often investing directly in projects through token swaps or equity arrangements. This allows us to offer high-quality market-making services without placing excessive financial burden on the projects. By aligning our incentives with the success of the project, we create mutually beneficial partnerships that allow for scalable, long-term growth.

Do market makers only trade through order books or do they also provide services to AMM projects?

Market makers like DWF Labs are not limited to order book trading on centralized exchanges. We also actively engage with Automated Market Makers (AMM) in decentralized finance (DeFi). In AMM systems, liquidity is provided through liquidity pools rather than traditional order books. We provide liquidity to these pools, facilitating efficient trading, reducing slippage, and helping DeFi ecosystems grow. This dual approach allows us to contribute to both centralized and decentralized markets, supporting a broad spectrum of blockchain projects.

What made you trust Orderly’s security as it is counterparty risk?

Orderly Network has implemented robust security protocols and smart contract audits to ensure the safety of funds and transactions within its platform. At DWF Labs, we also conducted our own due diligence by reviewing Orderly’s technical infrastructure, which included verifying the integrity of their decentralized infrastructure and understanding their counterparty risk management processes. Their transparent approach to security and their focus on protecting user assets were key factors that made us confident in their security measures.

Would you work with a non-doxxed team?

We typically prioritize working with teams that are transparent and publicly accountable, as this provides greater confidence in the project’s long-term viability. However, we understand that in the Web3 space, anonymity can sometimes be necessary for privacy reasons, especially when working with decentralized technologies. While we prefer working with doxxed teams, we are open to working with non-doxxed teams if they can provide other assurances, such as strong security audits, community backing, and proven track records in the industry.

How can a team get in contact with you?

Teams interested in collaborating with DWF Labs can reach out to us directly via our website here. We’re also active across various social media platforms like Twitter and Telegram, where we engage with the Web3 community.

Securing a high-quality market maker can be the difference between success and stagnation for a project. DWF Labs brings unmatched value and expertise, guiding token life cycles by fostering strategic partnerships and supporting the broader ecosystem to ensure market readiness and long-term success.

As we continue to expand Orderly Network’s reach, partnering with such key players ensures we stay at the forefront of DeFi trading, unlocking long-term success for all Web3 projects we support.

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