@quant_arb Well the token loans are usually token only in the form of an option. You technically sell some of that inventory to maintain delta neutrality during the operation
1/ 🧵 Lately, a narrative is spinning around an entity posing as a Market Maker, OTC desk & Venture firm. Many believe their actions don’t align with genuine market-making or OTC trading practices.
Let’s take a closer look👇:
Before "On-chain Summer" hit the headlines, 2023 was already the year of layer 2s and Ethereum scalability.
L2 solutions have launched in waves, each promising to alleviate Ethereum's underlying constraints with faster transactions, reduced fees, and enhanced scalability 👇
1/ 🧵 Lately, a narrative is spinning around an entity posing as a Market Maker, OTC desk & Venture firm. Many believe their actions don’t align with genuine market-making or OTC trading practices.
Let’s take a closer look👇:
16/ It seems we have entities branding themselves as “Market-makers” blurring lines and creating a misleading facade in the financial space. After what happened with FTX and Alameda it's time to differentiate HFT and directional trading from Market Making services.
15/ Genuine Market-Makers play a crucial role by ensuring minimal price impact on the order books. Sadly, DWF’s actions seem to deviate from this, leading to a potential discredit to the industry.