Turn Liquidity Into Profit
Market making is one of the most reliable ways to generate returns in crypto. Instead of guessing price direction, you earn fees by providing liquidity that enables others to trade.What You’ll Learn
- How market making generates consistent income
- The two ways you profit from liquidity positions
- What will make you a profitable market maker
The Core Principle
Every trading strategy boils down to one principle: “buy low, sell high”. Market making adds infrastructure. You’re not just trading, you’re enabling trading to happen and earning fees for it.Two Ways to Profit
1. Trading Fees
Every time someone trades through a pool where you’ve provided liquidity, you earn a portion of the trading fees. High-volume pools generate more fees.2. Asset Appreciation
If the price of your assets increases while you hold a position, you benefit from that appreciation on top of your earned fees. The professional approach: Focus on pools where trading fees exceed impermanent loss. This creates sustainable, repeatable profits regardless of price direction.What Will Make You a Winner
1. Pool Selection (Most Important)
If you’re not in a pool with high trading volume, you won’t make money. Being in the right pool at the right time is crucial. You’ll find alpha from onchain data, not Telegram groups.2. Range Selection (Second Most Important)
If you’re not providing liquidity near the current price, your liquidity won’t be used and you won’t earn fees. You’ll position your liquidity where the action is.3. Strategy Selection (Refinement)
Having the correct liquidity curve helps you capture more fees:- Stable pairs: Consistent liquidity curves work well
- Volatile assets: Bid-ask strategies that concentrate around current price are more effective
4. Exit Discipline (Critical for Long-Term Success)
It’s easy to get lost and lose track of whether you’re actually making money. You’ll track real PnL, not paper gains. You’ll know when to exit.What This Means For You
With the right tools, market making becomes data-driven instead of guesswork. MetEngine gives you:- Real-time visibility into which pools are generating the most fees
- Intelligent range selection based on actual liquidity distribution
- Live PnL tracking including impermanent loss