VCRED
  • Introduction to VCRED
  • VCRED V2: sMM
    • Our Thesis
    • VCRED Agents
    • Marketmaking Basics
  • VCRED V1: Flash
    • Flashloans
    • Permissioned Flashloans
    • Audit
  • iVCRED Incentive Program
  • Investors
  • Partnerships/Integrations
  • Blog
  • Contact us
  • Socials
  • Back to VCRED
Powered by GitBook
On this page
  1. VCRED V2: sMM

Our Thesis

VCRED's approach to marketmaking

PreviousVCRED V2: sMMNextVCRED Agents

Last updated 2 years ago

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.

VCRED's Focus Points
VCRED's market making thesis