Liquid markets are healthy markets, says Kairon Labs co-founder

cointelegraph.com:

Market maker Kairon Labs have been working with projects such as StepApp (FitFi) and Ergo, providing liquidity on over 30 exchanges.

Kairon Labs and most other market makers agree that “liquid markets are healthy markets,” as when the markets are liquid, it allows for lower slippage and faster trades to occur, which allows for the fair trade of a token.

Cointelegraph spoke with the managing partner Jens Willemen for his comments on current market conditions and a brief explanation of how market makers are able to retain profitability in current bearish market conditions.

Cointelegraph: What is a market maker?

Jens Willemen: I would say that the market maker is someone who tries to create a healthy market where participants can find each other much more easily.

Whether you want to buy or you want to sell, you should always be able to do it at the current market price without too much slippage, which means price impact.

It should be a net positive to have market makers in any kind of asset class. That should be the goal. It shouldn’t be value extractive.

CT: How do market makers make money? 

JW: Anytime you buy or sell, there’s always a difference between those two and between the bid and the asking price. That’s where we make the money. The market maker takes the margin between those prices.

CT: How has Kairon Labs faired these last few months? 

JW: The crypto market has been in a rough spot the last couple of months. On our side, we were well-positioned. As a market maker, we are supposed to trade as neutral as possible, but in a lot of cases, we had a short bias for the last couple of months. 

So for us, it’s actually been the three most profitable months ever, more profitable than the bull run, even in terms of trading PNL