Market makers stay behind the success of some of the very successful unicorns and virtually all cryptocurrency related projects. Market makers' main focus is to steadfastly keep up liquidity, depth, and spread among markets to be able to provide buyers and sellers with the maximum 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 now tradable on the DEX (Decentralized Exchange) Pancakeswap.

To be able to create healthy volume and  a cost action, Mango Finance hired a market maker firm decentralized market making. The marketplace maker creates volume and the firm also sells Mango Finance tokens to be able to generate a wholesome income for itself. However, Mango Finance pays this market maker over $6,000 per month and pays 3% of most tokens sold, which is really a hefty price. Furthermore, Mango Finance is totally determined by the availability of this market maker. Mango Finance also desires to utilize this market maker to sell the tokens of their private investors. For this the marketplace 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 great help crypto startups, but their services may become quite costly. For this reason firms have already been trying to find market making alternatives and Avatea aims to aid unicorns and startups with exactly just that.

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

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

You are able to find out about the Avatea protocol and how it works here.