Market makers stay behind the success of some of the most successful unicorns and almost all cryptocurrency related projects. Market makers' main focus is to keep up liquidity, depth, and spread among markets in order to provide buyers and sellers with the best possible opportunity to trade a specific financial product or an asset.

Now, let's have a closer look at how market makers work and how they make profit:

Let's use the exemplory instance of a new project called Mango Finance. Mango Finance just finished their ICO(Initial Coin Offering) and their token is currently tradable on the DEX (Decentralized Exchange) Pancakeswap.

To be able to create healthy volume and  a price action, Mango Finance hired a market maker firm. The marketplace maker creates volume and the firm also sells Mango Finance tokens in order to generate a healthy income for itself. However, Mango Finance pays this market maker over $6,000 each month and pays 3% of most tokens sold, which is a hefty price. Furthermore crypto market making firm, Mango Finance is wholly influenced by the availability with this market maker. Mango Finance also really wants to make use of this market maker to offer the tokens of the private investors. With this the market maker is charging additional monthly fees.

Mango Finance is losing control over its markets, its private sale investors, and is paying hefty monthly fees for it.

As you will see from the above example, automated market makers have already been a good help crypto startups, but their services may turn out to be quite costly. This is why firms have already been looking for market making alternatives and Avatea aims to aid unicorns and startups with exactly just that.

Mango Finance now turns to the Avatea protocol. Selecting a decentralized market making bot. By connecting to the platform different market making algorithms become available which is often activated by staking their native token and a combined token such as BUSD or BNB. Mango Finance is currently able to handle their market making activities completely on their own, choosing and changing the desired volume, price action, and buy/sell orders whenever they want 24/7.

Mango Finance now pays a small fee to the protocol, this fee is employed to get back the native Avatea token.

You can learn more about the Avatea protocol and how it works here.