Auros: The Algorithmic Cryptocurrency Market-Making & Trading Firm

  • October 14, 2022
  • 19 Views

Auros is an algorithmic cryptocurrency market-making and trading firm that opens across all major venues and with popular instruments. As one of the largest participants in cryptocurrency markets, the platform delivers best-in-class liquidity for exchanges and token projects.

What is Auros All About?

By combining technological innovation that powers high-frequency trading strategies with a unique partnership-based approach, Auros redefines liquidity provision and sustainable growth in the digital assets space.

Although recent events have seen the crypto industry enter a bear cycle including the collapse of many crypto companies, it’s nothing unusual for crypto traders as it is not a new phenomenon in the industry.

There’s no doubt that the acceptance of cryptocurrency has been increasing as a viable financial asset in the future. As the number of crypto exchanges is growing around the world, market-making in the crypto space has also become increasingly common.

Market Making Done Right

Market makers such as Auros play an important role in increasing the accessibility and liquidity of cryptocurrencies to traders, investors, and market participants around the world.

Auros combines a large variety of source data and filters them for quality and accuracy at sub-second intervals. Therefore, it ensures that pricing is lightning quick to respond to market changes.

The data underpins all of the firm’s core products, from the provision of sustainable liquidity for partner projects to its high-frequency trading and arbitrage business.

Founded in 2019 by derivatives traders and trading system architects with over 20 years of experience, Auros accounts for a significant proportion of global cryptocurrency volume.

The firm has currently integrated with over 60 exchanges, including both centralized and decentralized, commanding a sizable share of daily global volume with a cumulative trading volume of over $1.5 trillion.

In addition to Strategic Market Making, Auros also has other major business lines, including Arbitrage/HFT, Stat Arb, DeFi, Investments, and Options and Volatility Trading.

What Does Auros Offer?

Liquidity is the degree to which an asset that traders can quickly buy or sell without notably affecting the stability of its price.

The benefits of market-making in the crypto space are it increases market liquidity, reduces price volatility, assists with fair price discovery, dramatically reduces slippage, mitigates dramatic price swings, and helps accommodate large institutional investors.

Markets that have low liquidity will have wide bid-ask spreads in their order books that can increase the volatility of the asset. As such, it makes it more difficult for crypto traders to get a good price for their trade.

As the overall liquidity of a market greatly influences its growth, market makers like Auros play a big role in ensuring liquidity.

However, although there is generally a greater opportunity to make profits when compared to most other traditional financial markets, cryptocurrencies are still relatively volatile as well as a greater risk to projects and traders.

It’s easy to see that if a project doesn’t have enough healthy crypto markets on exchanges, it can jeopardize the future of the market.

Auros not only develops trading algorithms and infrastructure but also Strategic Market Making, providing cornerstone liquidity to token issuers to underpin growth. The platform accommodates traders of all sizes to get in and out of positions during daily crypto volatility.

With its technological heritage, which combines sophisticated pricing models and state-of-the-art execution capabilities, the company is able to build sophisticated infrastructure and models to support the market-making business, which utilizes derivative instruments to improve partner projects’ tokens liquidity.

In addition, Auros also forms long-term partnerships with early-stage projects, not only to ensure healthy liquidity but even more so to foster ecosystem growth.

The firm’s unique partnership-based approach to external liquidity provision has rapidly established them as a go-to-market maker for token projects.

The partnership with Auros can result in KPIs to ensure liquidity providers are held accountable for the overall health of the market and wider token ecosystem.

Data Driven

Metrics are key factors in the trading activity of an ecosystem. It also ensures orderly entry and exit points for traders, which also reduces the chance of slippage.

The firm’s reliability and credibility have also been proven through its early and consistent participation in the lending/borrowing space, and track record in performing under market volatility.

A Strategic Market Making team is a partnership-based approach, a dedicated team to understand project liquidity needs, and cornerstone liquidity under various market conditions.

On the other hand, Auros also has its proprietary trading system, called “Pantheon”, and an engineering pedigree system, 65-70% of the firm are developers/engineers.

How Does Auros Work?

A key message is that it is ‘non-extractive’. Auros does not extract the firm’s revenue from issuers. Instead, the platform generates the revenue from performing the activities that the issuer needs, which is liquidity provision.

The alignment of objectives is another key concept. As the firm informed, alignment through incentivization rather than alignment through interests. Auros asks for a loan on tokens from the projects’ treasury for us to facilitate market making.

As market makers conduct market-making activities, they profit from the difference between the bid and ask price.

However, risk comes afterward. If there are not a similar number of both buyers and sellers, it will be a challenging situation for market makers.

Meanwhile, Auros capitalize on the relationship and manage risk through their understanding of complex instruments.

The firm is also able to use the loan+call options structure for it to capitalize on the partnership while performing activities that the issuer needs, without charging a fee to projects.

What Makes Auros Special?

In fact, there are a lot of methods that early-stage projects use to find key partners. One of them should be reputation as well as knowing exactly what kind of partnerships are best for a project.

While most services are paid out for effort and not results which remains the biggest risk for projects, Auros use KPI-based results instead, which shows major confidence in serving their partners well.

Customers have indicated that the Auros platform is unique because it has consistent KPI delivery, which is the model contractually obligated to deliver the KPI instead of “best-effort-based”.

Also, Auros provides deep, reliable liquidity that reduces the frictional cost of trading (spread), and allows for building, and holding larger positions with confidence (depth) and reliability through availability (uptime).

By maintaining constant communication and transparency, Auros is a reliable strategic partner.

To date, a lot of early-stage projects have chosen Auros such as Clearpool, Radix, Cega, or Qredo. Nature’s Vault, a Singapore-based Greentech company whose goal is to facilitate impact investments that combat climate change and ecosystem damage.

Nature’s Vault has partnered with Auros for the company’s first project, the Legacy Token.

Pyth, the leading oracle solution for latency-sensitive financial data, also receives pricing data for a range of cryptocurrencies derived from the Auros’ advanced high-frequency trading system.

Auros is Growing the Market

An efficient making marker can help accommodate larger institutional investors. As such, highly liquid makers can absorb bigger market orders, without increasing volatility.

Moreover, larger allocators want to ensure they get the best price for their assets. Therefore, the market maker Auros is a way of ensuring their experience is positive and efficient.

There’re a lot of challenges that early DeFi projects have to face. They may be looking to launch but don’t have the size of the community or the resources involved to start with.

Instead of fighting an uphill battle to gain momentum, you can partner with a market maker service like the one from Auros, which is not only mutually beneficial but also helps projects get the boost they need.

The post Auros: The Algorithmic Cryptocurrency Market-Making & Trading Firm appeared first on Blockonomi.

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