If you are a market maker in the digital asset space, you know how challenging it can be to distribute your liquidity to a diverse range of clients, manage your risk exposure, and optimize your capital efficiency. You have to deal with multiple platforms, protocols, and intermediaries, each with their own limitations, costs, and risks. You have to navigate complex and fragmented settlement processes, credit arrangements, and regulatory requirements. You have to balance the trade-offs between speed, security, and scalability.
But what if there was a better way? A way that allows you to access a global network of liquidity providers and consumers, without any of the traditional frictions and inefficiencies. A way that enables you to offer your liquidity to any client, regardless of their location, identity, or custody solution. A way that empowers you to manage your risk exposure, leverage your capital, and optimize your profitability.
Bosonic is a financial ecosystem that covers trading, lending and borrowing, and that removes all the traditional risks and inefficiencies. Bosonic leverages cutting-edge technology, such as Layer-2 blockchain solutions, smart contracts, and decentralized protocols, to create a seamless and secure environment for market makers and their clients.
Here are some of the key benefits of Bosonic for market makers:
Zero cost liquidity distribution to a wide array of retail and institutional clients: You can offer your liquidity to any client on the Bosonic network, without having to worry about bilateral credit or bilateral settlement. You can reach clients who use self-custody wallets, as well as those who use regulated custodians. The network also offers you deep and anonymous hedging liquidity from other market makers, aggregated for your convenience.
No bilateral credit, no bilateral settlement: You don't have to deal with the hassle and risk of establishing and maintaining credit lines or settlement arrangements with each of your counterparties. Bosonic handles all the clearing and settlement processes for you, using real-time cross-margining, multilateral netting, smart contracts, and automated net settlement movements at regulated custodians. You don't have to worry about trading counterparty credit or settlement risk, as all transactions are fully collateralized and guaranteed by Bosonic.
Net settlement automation at a regulated custodian: You don't have to wait for days or weeks for your trades to settle. Bosonic enables instant 24x7 settlement of crypto or fiat on a custodial Layer-2 blockchain ledger. You can choose from a range of regulated custodians that support the Bosonic protocol, such as BitGo, Fireblocks, Copper, or Gemini. You can also switch between custodians at any time, without affecting your trading activity or liquidity.
No onboarding or AML/KYC of counterparties accessing liquidity via regulated custodians: You don't have to spend time and resources on verifying the identity and compliance status of each of your clients. Bosonic delegates the AML/KYC responsibility to the regulated custodians that your clients use. You can focus on providing the best liquidity and service to your clients, without compromising on regulatory compliance or security.
Lending marketplace for Repo transactions to short borrow, finance margin and leverage as well as earn a yield on inventory: You can use the Bosonic lending marketplace to borrow or lend digital assets for short-term periods, such as overnight or intraday. You can use this feature to short borrow assets that you want to sell but don't own, finance your margin requirements or leverage your positions, or earn a yield on your idle inventory. You can also lend your excess inventory to other market makers or clients who need it, and earn interest on it.
As you can see, Bosonic is a game-changer for market makers in digital and tokenized assets. It offers you a unique opportunity to expand your client base, reduce your operational costs and risks, and increase your capital efficiency and profitability.
If you want to learn more about Bosonic and how it can benefit you as a market maker, schedule a demo today!
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