Denarii Labs Cohort 1 — Kairon Labs: Market Making and Liquidity (Week 7 Recap)

Denarii Labs
3 min readNov 19, 2023

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In the world of cryptocurrencies, market makers inhabit a crucial role. These entities ensure continuous availability of assets for trade, thus stabilizing the market and reducing the risk of erratic price swings that would come with simple P2P order books. Market makers maintain market liquidity by providing both buy and sell orders, profiting from the price spread, and aiding in smoother, more stable market operations.

We partnered with one of the top market makers in the industry, Kairon Labs. The majority of this week was based on learning from their expertise, which for a cohort about to launch five token projects, was invaluable.

Mentor Talk: Matt Engel Head of BD for Kairon Labs

Matt provided the cohort a full course on market makers: Who they are, what they do, the benefits they provide, and how they operate. To put it simply, Kairon makes sure that the price of a certain asset always has some level of liquidity near the current price. This keeps the bid or ask price from moving too far up or down to meet the “next best order”; instead they ARE the next best order, for both buy and sell side.

He also delved into the two main pricing structures: Retainer or Loan. With retainer, it involves a fixed monthly fee for a split of any trading profit, but can increase risk. In a loan model, the market maker borrows a portion of the token and makes their profit from those trades, incentivizing them to keep the token’s value above their margins.

On Friday, Matt returned to work with the team and emphasize the importance of selecting the right market maker. Any shop can have the right liquidity, the right pricing and strategy, but having someone in your corner to help with exchange listings or advisory can really be the game-changer for a token project.

Spotlight: Kairon Labs

Kairon was our top choice for a market maker we wanted in our corner. Kairon Labs offers premium market-making services tailored to digital asset issuers and token projects, bringing the features those projects want and need. Their cutting-edge algorithmic trading software is meticulously integrated into an extensive network of over 100 exchanges (CEXs and DEXs), ensuring round-the-clock global market coverage.

They have a strong client list with 300+ projects and decades of experience in leading financial institutions; the team possesses a wealth of expertise in trading, quantitative investments, financial markets, fintech, and trading technologies. There are many reasons why their extensive knowledge allows them to deliver great market-making solutions, but these are the most striking:

  1. Crypto Market Making/ Liquidity Provisioning: Improve your token liquidity with custom algorithmic trading strategies that positively impact your project’s market.
  2. Advisory Services: Leveraging on years of experience and market intelligence, Kairon Labs can help analyze your token’s performance, provide tokenomics assessments and macro market analysis, working closely with your team towards a sustainable and successful outcome.
  3. Vast Experience: Operating for four years, with collaborations spanning 300+ projects and $200B+ trade volume over time.
  4. Global Presence: Operational 24/7 across North America, South America, Europe, Africa, Asia, and Australia.
  5. Exchange Listing Assistance: Kairon Labs offers valuable support by facilitating introductions to suitable exchanges, assisting in tokenomics design, and developing a listing strategy.
  6. Cutting-edge Tech: Their unique proprietary trading technology integrates with over 100 exchanges, ensuring round-the-clock market coverage.
  7. Diverse Services: From crypto market making and advisory services to exchange listing assistance, Kairon Labs caters to digital asset issuers at any stage of their journey.
  8. Sponsorship and IP Licensing: Kairon Labs’ expertise in the Cryptocurrency and NFT space enables them to educate IP rights holders on the potential business opportunities available to them, while also helping them connect with crypto-native partners to ensure the success of their projects.

Connect with Kairon Labs

To explore their offerings or get in touch, visit their website or reach out through their contact form. Stay updated with Kairon Labs via their Twitter, LinkedIn, Instagram, Medium, and Telegram Channel.

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