April 9, 2019
Automated Market Making (AMM) is our first automated strategy available to LVL members. Think of your AMM as a trading bot that trades funds on your behalf. Your AMM tracks the market price and offers to buy below market and sell above market, 24 hours a day. AMM's can be funded from your wallet, are fully automatic, and have only two settings to learn.
Your AMM creates value on LVL by providing liquidity for retail market orders. That's why we're launching AMM's as our first strategy. AMM's provide every user the opportunity to make LVL's marketplace more efficient, and make a potential profit along the way. And because markets start out inefficient, AMM's help reward early LVL members that create liquidity.
Frequently Asked Questions
Market makers place buy orders for less than market price and sell orders for higher than market price.
Why should I market make?
Market making trades 24/7 for a profitable spread and creates liquidity on Level.
Is market making risky?
Is market making more profitable than buying BTC?
This depends heavily on market conditions. As part of a diversified investing strategy, market making creates a profit opportunity when markets are volatile but price-stable.
How is this different than other exchanges?
Market making, market orders, and trading are all free for Level members. 100% of market making profits on Level go to inventory holders. Level does not market make corporate funds.