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Market Making Guide

Build market making strategies with the ZenOTC SDK.

Basic Market Maker​

async def market_maker(client):
    while True:
        # Get reference price
        price = await client.market_data.get_price("BTC")

        # Calculate spread
        spread_bps = 20  # 20 basis points
        half_spread = float(price.mid) * spread_bps / 10000 / 2

        # Submit quote
        quote = await client.market_making.submit_quote(
            asset="BTC",
            bid_price=float(price.mid) - half_spread,
            ask_price=float(price.mid) + half_spread,
            bid_size=1.0,
            ask_size=1.0,
            valid_for_seconds=30
        )

        # Wait for quote to expire
        await asyncio.sleep(25)

        # Cancel and refresh
        await client.market_making.cancel_quote(quote.id)

Dynamic Spread​

Adjust spread based on volatility:

volatility = calculate_volatility(...)
spread_bps = 10 + volatility * 100

Inventory Management​

Monitor position and adjust quotes:

position = await client.portfolio.get_position("BTC")
if position.quantity > 5:
    # Skew quotes to reduce inventory
    bid_size *= 0.5
    ask_size *= 1.5