PepperDEX In-house Market Maker

PepperDEX will be running its own market maker, developed in-house to solve inconsistent liquidity on orderbooks. Additionally, users can participate in our market maker by depositing in its corresponding vault. Thus, users can earn a democratized and pro-rata share of profits made by the PepperDEX market maker by depositing in its corresponding vault.

However, it is essential to understand that the same applies to losses. User collateral may be used to settle positions with negative PnL. PepperDEX's market-making algorithm is designed to minimize any potential losses that may occur, but there is always a possibility of incurring losses from sudden market movements/volatility. Traders deposit at their own risk.

The exact functionality of the market maker can be ascertained in the following sub-pages.