VCRED's approach to marketmaking
VCRED's Focus Points
VCRED operates at the intersection of AMMs and traditional market makers. Our smart Market Maker provides the best of both worlds, with a user experience similar to AMMs while enabling asymmetric exposure to long-tail assets with a more transparent view of the algorithmic marketmaking process.
To achieve this, we initially integrated with major CLOBs and used our institutional-grade backend to assimilate data on blue-chip tokens and finetune our strategies. We use a set of alpha factors, including trading indicators, to form a factory pattern daily, selecting the best features based on a set of robust statistical testing procedures. When LPs stake their assets on VCRED's vaults via a pool manager contract, VCRED's trader contracts interface with its AI or statistical engine to estimate the best alpha factors from the previous time window to execute the trade or long/short and provide liquidity for long-tail assets while delivering an asymmetric return.