📊
Duet Protocol
  • Duet Protocol
    • Introduction
    • Overview
  • Value Propositions
    • Liquidity Providers
      • Liquidity Providers
      • Market Makers
    • Investors
      • Crypto Investors
      • Traditional Investors
    • Third-Party DeFi Protocols
  • Token Economics
    • What is the Duet Token
    • Utilities of DUET Token
    • Token Distribution
    • Governance
  • Functions & User Guides
    • Stablecoin Minter
      • Wallet Configuration
      • Mint dUSD
      • Redeem dUSD
    • Earn
      • Earn User Guide
    • dAssets
      • dAssets User Guide
    • Farm
    • $bDUET
      • Overview
      • How to calculate the value of a $bDUET
      • Duet Open Bond Market
      • Yield to Maturity and Yield Curve
      • Bond As A Service
  • Synthetic Assets
    • dUSD
    • dWTI
    • dXAU
    • dBonds FAQs
  • Roadmap
  • Glossary
  • DUET PRO
    • Architecture
    • DPMM (Proactive Market Making)
    • External Custody
    • Funding Fee
    • Leverage
    • Margin Requirement
    • Mining (AMM Liquidity Mining)
    • List of Markets
  • Library
    • List of Markets
    • Terms of Service
    • Cookie Policy
    • Privacy Policy
    • Contract addresses
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  1. Value Propositions
  2. Liquidity Providers

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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Last updated 3 years ago

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