OPNX Launches Make Maker Program: Providing Liquidity Incentives to Market Makers

On April 8th, it was announced that the Open Exchange (OPNX), a bankruptcy claims exchange founded by the founder of Sanjian Capital, Su Zhu, and others, has officially launched the Make Maker Program, aiming to provide liquidity incentives to market makers. There are two main incentive methods: one is that up to 200 VIP market makers can receive a monthly subsidy of $5000, and the other is that they will support incentives ranging from $50000 to $500000 per month based on the proportion of transaction volume.

Cryptographic Claims and Trading Platform OPNX Announces Market Maker Plan

Introduction

On April 8th, 2021, the bankruptcy claims exchange Open Exchange (OPNX) officially launched its Make Maker Program. The program is aimed towards providing liquidity incentives to market makers, and is founded by Su Zhu, the founder of Sanjian Capital, and others. There are two main incentive methods, the first being a monthly subsidy of $5000 for up to 200 VIP market makers and the second being transaction volume-based incentives ranging from $50,000 to $500,000 per month. This article aims to provide an in-depth analysis of the program and its potential impact on the market.

What is OPNX?

Before diving into the details of the Make Maker Program, it’s important to understand what OPNX is. The Open Exchange is a bankruptcy claims exchange that operates by allowing users to buy and sell claims against bankrupt companies. The platform is unique in that it allows claimants to recover their funds quickly, often in under a week.

Overview of the Make Maker Program

The Make Maker Program’s objective is to provide incentives to market makers to increase liquidity on the platform. Market makers are traders who are willing to buy and sell assets on a continuous basis. They provide liquidity to the market and ensure that trades can be executed quickly and efficiently. The program has two main incentive methods: the first is a monthly subsidy for VIP market makers and the second is a transaction volume-based incentive.

Monthly Subsidy for VIP Market Makers

The first incentive method is aimed towards attracting and retaining VIP market makers. Up to 200 VIP market makers will receive a monthly subsidy of $5000. This is intended to incentivize them to remain active on the platform and provide liquidity to the market. VIP market makers will be selected based on certain criteria such as their trading history, trading volume, and their overall contribution to the liquidity of the platform.

Transaction Volume-Based Incentives

The second incentive method is based on the proportion of transaction volume achieved by market makers over a period of one month. The incentive ranges from $50,000 to $500,000 per month, depending on the transaction volume. This means that market makers who execute larger trades and increase the overall transaction volume of the platform will be rewarded with a larger incentive. This is expected to create a positive feedback loop where market makers are incentivized to provide liquidity, which leads to more trading activity and a more efficient market.

Potential Impact of the Make Maker Program

The Make Maker Program is a significant development for OPNX as it aims to increase liquidity on the platform. This is important as it will make trading on the platform more efficient and will attract more traders. More traders mean more liquidity, which can lead to higher trading volumes and increase the overall value of the assets being traded. It is expected that the program will attract more VIP market makers who will provide liquidity to the market, and the transaction volume-based incentives will encourage market makers to compete for a share in the incentives.

Conclusion

The Make Maker Program launched by OPNX is aimed towards providing liquidity incentives to VIP market makers on the platform. The program has two main incentive methods, a monthly subsidy for up to 200 VIP market makers and a transaction volume-based incentive ranging from $50,000 to $500,000 per month. The program is a significant development for OPNX as it will increase liquidity on the platform, which is expected to attract more traders and lead to higher trading volumes. The program is expected to create a positive feedback loop where market makers are incentivized to provide liquidity, which leads to more trading activity and a more efficient market.

FAQs:

Q: What is OPNX?
A: OPNX is a bankruptcy claims exchange that allows users to buy and sell claims against bankrupt companies.
Q: What is the Make Maker Program?
A: The Make Maker Program is a program launched by OPNX aimed towards providing liquidity incentives to market makers.
Q: What are the two main incentive methods of the Make Maker Program?
A: The two main incentive methods are a monthly subsidy for up to 200 VIP market makers and a transaction volume-based incentive ranging from $50,000 to $500,000 per month.