> For the complete documentation index, see [llms.txt](https://duet-protocol.gitbook.io/duet-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://duet-protocol.gitbook.io/duet-protocol/value-propositions/liquidity-providers/market-makers.md).

# 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. <mark style="color:orange;">**Automated Reinvesting**</mark>**:** automatically reinvests rewards from the receipt tokens and enhances overall return
2. <mark style="color:orange;">**Reward on AMM Pool**</mark>**:** Synthetic assets can be used to participate in various farming pools
3. <mark style="color:orange;">**Mint to Earn Rewards**</mark>**:** Duet rewards market makers for assuming more risks with returns from Duet swap
4. <mark style="color:orange;">**Covered Short Positions**</mark>**:** 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