Virtual Market Maker

The Virtual Market Maker (VMM) is a trading vault that provides liquidity to VDEX, performs liquidations, and acts as a common counterparty. It utilizes Betancourt's formula among other algorithmic market making strategies to minimize the possibility of drawdowns, while ensuring tight spreads.

The VMM democratizes opportunities that are reserved for insiders in centralized exchanges. The VMM is transparent and permissionless so that any user can provide liquidity and share equally in profits. The VMM is fully community-owned and autonomously operated.

The VMM profits through the bid-ask spread, net funding, and trading fees. All excess trading fees are awarded to the VMM as yield.

The vault lock-up period is 24 hours after initiating a withdrawal. Balance is reflected according to the most recent epoch, which is updated every 10 minutes.