BitMart officially announces the launch of the AMM Bot automated market-making tool, introducing an automatic liquidity solution for some spot trading pairs. This means that ordinary users no longer need to manually place orders; by providing liquidity, they can automatically participate in market making and earn trading fee dividends.
What is the AMM Bot and how to use it
Core Mechanism
The AMM Bot operates based on the constant product market-making algorithm. Simply put: users inject two assets (such as BTC and USDT) into the liquidity pool, and the system automatically places buy and sell orders across multiple price ranges. This way, even without manual order placement, the trading pair can maintain a stable trading depth.
Participation Method and Earnings
After becoming liquidity providers, users share the trading fees generated by the trading pairs according to their liquidity share. In simple terms: the more active the trading, the more fees are generated, and the more earnings participants receive.
Compared to traditional manual order market-making, the AMM Bot has several obvious advantages:
No need to manually manage orders, fully automated operation
Supports flexible addition and removal of liquidity, funds are not locked
Lowers market-making barriers, allowing ordinary users to participate
Why is BitMart launching this feature now
Exchange Business Expansion
According to the latest data, BitMart has over 13 million registered users worldwide last year, with spot trading volume increasing by 58.5% year-over-year and futures trading volume increasing by 68%. In this high-growth context, launching the AMM Bot market-making tool has several implications:
First, to enhance liquidity. More liquidity means better trading depth for trading pairs and a smoother trading experience for users, which can attract more traders.
Second, to increase user stickiness. Through fee dividends, ordinary users can also participate in market making for profit, expanding the exchange’s participant base.
Third, to diversify income sources. Besides trading profits, users gain a passive income channel, which is very helpful for attracting long-term users.
Market Observation
Such features are already common in large exchanges, with DEXs like Uniswap taking this as their core mechanism. BitMart’s launch of the AMM Bot indicates that centralized exchanges are also borrowing from DeFi advantages to offer users more diverse participation options.
Summary
The launch of the AMM Bot reflects BitMart’s ongoing efforts to optimize trading experience and improve liquidity. For ordinary users, it’s a new passive income opportunity; for the exchange, it’s a strategic move to attract and retain users. However, it’s important to note that market-making also involves market risks, and users should fully understand the mechanism and risks before participating.
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BitMart launches AMM Bot market-making tool, allowing ordinary users to participate in liquidity mining and earn fees
BitMart officially announces the launch of the AMM Bot automated market-making tool, introducing an automatic liquidity solution for some spot trading pairs. This means that ordinary users no longer need to manually place orders; by providing liquidity, they can automatically participate in market making and earn trading fee dividends.
What is the AMM Bot and how to use it
Core Mechanism
The AMM Bot operates based on the constant product market-making algorithm. Simply put: users inject two assets (such as BTC and USDT) into the liquidity pool, and the system automatically places buy and sell orders across multiple price ranges. This way, even without manual order placement, the trading pair can maintain a stable trading depth.
Participation Method and Earnings
After becoming liquidity providers, users share the trading fees generated by the trading pairs according to their liquidity share. In simple terms: the more active the trading, the more fees are generated, and the more earnings participants receive.
Compared to traditional manual order market-making, the AMM Bot has several obvious advantages:
Why is BitMart launching this feature now
Exchange Business Expansion
According to the latest data, BitMart has over 13 million registered users worldwide last year, with spot trading volume increasing by 58.5% year-over-year and futures trading volume increasing by 68%. In this high-growth context, launching the AMM Bot market-making tool has several implications:
First, to enhance liquidity. More liquidity means better trading depth for trading pairs and a smoother trading experience for users, which can attract more traders.
Second, to increase user stickiness. Through fee dividends, ordinary users can also participate in market making for profit, expanding the exchange’s participant base.
Third, to diversify income sources. Besides trading profits, users gain a passive income channel, which is very helpful for attracting long-term users.
Market Observation
Such features are already common in large exchanges, with DEXs like Uniswap taking this as their core mechanism. BitMart’s launch of the AMM Bot indicates that centralized exchanges are also borrowing from DeFi advantages to offer users more diverse participation options.
Summary
The launch of the AMM Bot reflects BitMart’s ongoing efforts to optimize trading experience and improve liquidity. For ordinary users, it’s a new passive income opportunity; for the exchange, it’s a strategic move to attract and retain users. However, it’s important to note that market-making also involves market risks, and users should fully understand the mechanism and risks before participating.