Market-Making Scripts for OpenBook

Problem to Solve:

Market Making is critical for infusing liquidity in orderbooks, increasing efficiency for any exchange. After the demise of FTX, OpenBook (Fork of Project Serum) has been facing a liquidity crunch due to a lack of market makers. Alameda was one of the most active market makers.

Without active market making, spreads won’t be tight, leading to inefficient prices for all market participants.

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Possible Solution:

Provide liquidity on OpenBook by placing bids/asks on opposite sides of the book and earning a spread.

The SDKs can be utilized to pay a 2 bps fee for taker orders and pay 0 bps to make, i.e., market-making executions will be cost-free.

A few features of the bot can be:

1) It should be easily configurable by anyone, plug and play.

2) It should place both ask and bid orders around some mid-price.

3) The spread should be configurable.

4) It should automatically rebalance and be able to maintain 24/7 liquidity

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Resources:

1. OpenBook Docs
2. Market Making Bot by Mango Markets
3. Hummingbird - A Market Making Bot Platform
4. OpenBook Deep Dive by Yash from Superteam
5. A list of DeFi projects that have won Solana global hackathons in the past

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