Market Makers

When a user supplies capital and mints any synthetic asset that fluctuates in value, which is then supplied to the market, the user is considered a market maker. Market makers often assume a short position in the underlying synthetic asset. They are expected to buy back and return the synthetic asset to claim their reserve capital. This may result in a loss when the asset price rises or even liquidation when the liquidation ratio is crossed. Duet provides market makers with

  1. Automated Reinvesting: automatically reinvests rewards from the receipt tokens and enhances overall return

  2. Reward on AMM Pool: Synthetic assets can be used to participate in various farming pools

  3. Mint to Earn Rewards: Duet rewards market makers for assuming more risks with returns from Duet swap

  4. Covered Short Positions: Legacy synthetic protocols cover losses of the market makers by paying a lot of tokens, Duet introduces a novel solution where market makers are able to hedge all the short positions by opening long positions in underlying asset markets

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