There is a poster on X claiming that $GME short interest is ~700% of shares outstanding. I believe he does some clever reverse engineering to discover how markets are made.He claims buy volume and short sell volume track together as part of the evidence to start his theory off. This is market making and is true for just about all stocks. I explained operational shorting by market makers/dealers in my Final Stop GameStop post.As I said then “This mechanism affects all stocks, not just GameStop. Nothing so si ...

Available recipes include:→ Market Making, earning swap fees plus lending yield.→ Short Market Making, with liquidity positioned for downside.→ Long Market Making, with liquidity positioned for upside.→ Delta Neutral Market Making, earning yield with limited price exposure.→ Long or Short positions, using built-in leverage.→ Straddles and options style setups, built for volatile markets. ...

RT Nobs (market making arc) (@nobsfud)he will make it https://t.co/cyXzAJsCTa ...

Core Insights - Crypto.com is expanding into prediction markets by establishing an internal market-making desk, which raises concerns about potential conflicts of interest as the exchange may trade against its own users [1][2][4] Group 1: Company Developments - The Singapore-based cryptocurrency exchange is actively recruiting a quantitative trader to manage financial contracts related to sporting events on its prediction market platform [1] - The new market-making role will involve trading against customer orders to enhance liquidity for sports contracts and other derivatives on the U.S. platform [2] Group 2: Industry Context - Prediction markets allow users to trade contracts based on real-world outcomes, with prices reflecting the market's implied probabilities, but the introduction of in-house market makers has sparked debate over neutrality [3] - The practice of market making is contentious, especially for exchanges under U.S. federal oversight, as it can resemble traditional sportsbooks that profit from customer losses [4] Group 3: Responses and Clarifications - A spokesperson from Crypto.com stated that the company does not depend on proprietary trading for revenue and aims to provide customer access to digital assets and event contracts for a fee while maintaining a risk-neutral stance [6] - The internal market maker at Crypto.com does not have preferential access to customer order flow or proprietary data and operates under regulations disclosed to the Commodity Futures Trading Commission [7]

Hiring Activity - The company is hiring a quantitative trader in the US [1] - The role focuses on sports event prediction and market making [1]

https://t.co/1aQemhmjuy is looking for a new employee to work on a market making team that will face off against customers on the company’s prediction market exchange https://t.co/M90qMhiCQ3 ...

Key Benefits of Extended and Starknet DeFi Integration - Enhanced capital efficiency allows users to earn yield while trading and holding perp positions [2] - Migration of idle USDC from exchanges to Extended vaults is expected, leading to increased liquidity and improved execution [2] - Attracts traders from other perpetual exchanges due to the LP and trade integration [2] Extended Vault Mechanics - Users deposit USDC into the Extended vault, which employs advanced market-making strategies [1] - Vault generates fees, with an all-time APR of approximately 14% for LPs [1] - In return for USDC deposits, users receive XVS, a tokenized share of the vault [1] - XVS can be used as collateral to trade perpetuals [1] Flywheel Effect and Future Potential - Increased capital efficiency leads to more liquidity in the vault [4] - More liquidity results in better pricing for traders [4] - Better pricing attracts more traders [4] - More traders lead to better APR for LPs, further increasing liquidity [4] - Delta-neutral farmers are expected to increase deployment into Extended strategies, adding more liquidity and efficiency [3] - Potential for structures like 'Ethena 20' built around XVS collateral for delta-neutral strategies [3] - Integration of XVS across Starknet DeFi is anticipated [3]

Funding & Investment - DWF Labs launches a $75 million USD fund to boost DeFi innovation [1][2] - The fund targets perp DEXs, money markets, and yield protocols [1][2] - Capital allocation and strategic support will be provided to innovators [1] Technology & Blockchain - Focus is on DeFi projects across four chains: Ethereum (ETH), Base, BNB Chain, and Solana (SOL) [1][2] Market Strategy - DWF Labs aims to provide liquidity and market making support [1][2] - The initiative seeks to fund builders regardless of market conditions [1]

Core Insights - Galaxy Digital is in discussions to become a liquidity provider for Polymarket and Kalshi, reflecting a trend of trading firms entering the prediction market space as adoption increases and compliance risks decrease [1][2][7] Group 1: Market Making and Liquidity - Galaxy Digital is experimenting with market-making on prediction markets, aiming to provide broader liquidity in the future [2] - The entry of institutional market makers like Galaxy could enhance market depth and reduce costs for users in a sector currently characterized by tight liquidity [3] - The presence of large market makers could facilitate arbitrage opportunities, addressing significant price divergences in prediction markets [4] Group 2: Institutional Interest and Historical Context - The prediction market sector is witnessing increased interest from institutional traders, with firms like Jump Trading and Alameda Research exploring opportunities similar to those in the cryptocurrency market prior to 2016 [5] - Kalshi has onboarded Susquehanna as its first major institutional market maker, indicating a shift towards institutional participation in prediction markets [5][8] Group 3: Regulatory Environment - Regulatory approvals have eased the entry of institutional trading desks into the prediction market space, enabling firms like Galaxy Digital to provide liquidity [7] - The regulatory landscape has significantly changed since 2022, when the CFTC ordered Polymarket to withdraw from the U.S., allowing for new partnerships and market-making opportunities [8]

xrp etf seed capital requirements force $55-275m buying november 12-13 launch. 11 products need $5-25m each before trading starts. jane street jump drw already accumulating 50-100m xrp for market making. exchange balances dropped 280m tokens past 2 weeks but price flat. structural demand not speculation. ...