Market Maker Participation

For more information on incentive programs for Market Makers, see Maker Rebate Fees

Introduction

You can participate as a Market Maker on the platform. You can provide liquidity through either:

Just-in-Time Liquidity

You can participate in the JIT auction and provide just-in-time liquidity as taker flow comes in.

The JIT window is the taker order’s own auction duration, measured in slots (set by the client, subject to a per-market/tier floor). This gives you an opportunity to see retail flow before it hits the market; the wall-clock length of that window depends on both the order and the current Solana slot duration.

You can participate in the JIT system by running a JIT Maker Bot. For more information, check out Tutorial: JIT Maker Bot

For more information on JIT, check out JIT Maker FAQ.

Decentralised Orderbook

You can also provide liquidity to Velocity’s decentralised orderbook by quoting via the UI or programmatically through the Velocity SDK

Providing liquidity via the UI

When you place a ‘Post-Only’ limit order via Velocity’s UI, it qualifies as a maker order.

This order won’t execute against the AMM or go through the JIT. It sits in the decentralised orderbook until a taker for that price comes along.

Programmatic market making with a floating maker bot

Velocity has an open-sourced bot that programmatically quotes bids and asks around the oracle price. These quotes update automatically as the oracle price moves.

In practice, the floating maker bot quotes above and below the oracle to provide liquidity around the oracle price. If you run the bot, you can collect the spread as the price moves.

Velocity currently runs this bot, along with some additional risk parameters, on the platform for-profit. We’ve open-sourced the build here so you can run something similar.

Floating Maker Bot - Github Link: https://github.com/velocity-exchange/velocity-v1/blob/master/apps/keeper-bots-v2/src/bots/floatingMaker.ts