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Submitting an Automated Market Making Instruction

Important: Automated Market Making Instructions can only be submitted by institutional customers.

By submitting an AMM Instruction you are instructing the Automated Market Maker (AMM) to make a market on your behalf by continuously managing bid and offer orders. You will receive income when other market participants trade against your bids and offers and the AMM will immediately and automatically reprice your orders upon every trade. Learn more about how Automated Marking Making generates income.

Submitting an AMM Instruction

Automated Market Making Instructions offer eligible customers the flexibility to:

  • Contribute at their desired minimum bid/offer spread
  • Concentrate their contribution by choosing a specific price range
  • Send multiple instructions each with different parameters

After creating and submitting your AMM Instruction the AMM will immediately place multiple bids and offers across your defined price range. If the market is not trading within your price range, your bids and offers will not be filled and you will not generate additional income. When the market is trading within your price range once again, other market participants will be able to trade against the bids and offers sent by the AMM on your behalf and you may generate additional income.

Minimum value

Each AMM Instruction has a minimum asset value requirement of US$5,000 in total, across the one or two assets in the instruction. There may be a larger minimum value for very wide price ranges. The exchange will inform you if you have not supplied enough of each asset.

To submit an AMM Instruction:

Step 1: Select a market

  1. Go to the left-hand navigation and choose Earn.
    Earn on lefthand navigation.png
  2. Choose a market you wish to contribute to from the list, then choose Create AMM Instruction on the far right-hand side.
    Highlight Create AMM Instruction.png

or

  1. Go to the left-hand navigation and choose Portfolio.
    Portfolio on lefthand navigation.png
  2. Select the Liquidity tab
    Liquidity tab under portfolio
  3. Choose Create AMM Instruction at the top right-hand side.
    Create AMM Instruction button under portfolio
  4. Select the market pair you wish to contribute to.
    Select
  5. Choose Continue.
    Highlight Continue button.png

Step 2: Define your parameters

Opening an AMM Instruction requires three elements: spread, a defined price range, and the amount of both assets you wish to contribute.

Spread

  1. Navigate to Select Fixed Spread at the top of the Create AMM Instruction window
  2. Choose the minimum bid/offer spread you want from the Select Fixed Spread drop-down menu.
    • The AMM will place multiple bids and offers into the market on your behalf. The highest bid and the lowest offer will be at least this distance apart at all times.
      Highlight Fixed Spread dropdown.png
  3. Choose to employ a Dynamic Spread or not using the tick box.
    • Dynamic spreads attempt to generate additional returns for liquidity providers by temporarily widening the spread when our automated system believes that volatility will be higher than average in the coming minutes.
      Dynamic Spread.png
Note: The automated Dynamic Spread system is part of our Bullish enhancements and subject to change at any time.

Price boundaries

  1. Navigate to Price Boundaries.
    Highlight Price Boundaries.png
  2. Use the Min and Max selectors on either side of the chart to define your lower and upper price boundary or directly enter your desired prices.

Asset amount

  1. Navigate to Assets.
    Assets in create AMM Instruction window.png
  2. Enter the base and/or quote amount.
  3. Make sure to have sufficient funds available in your spot account in order to contribute.
Note: If the lower-bound is higher than the current price, you will only have a base amount. If your upper boundary is lower than the current price, you will only have a quote amount. If your price is in between the two boundaries you have set, you will need to provide assets in a particular ratio based upon those three prices. By entering an amount of either asset, the system will help you by showing the required amount of the other asset.

Once all of your parameters have been set, choose Submit at the bottom of the window. This will send your parameters to the engine and immediately place bids and orders into the market on your behalf.

Note: You can submit several AMM Instructions for the same market.

Amending an AMM Instruction

You cannot make changes to an existing AMM Instruction. You can choose to terminate an existing AMM Instruction and/or send a new AMM Instruction.

Terminating an AMM Instruction

Terminating your AMM Instruction means that you no longer wish to make markets using the given AMM Instruction’s parameters and locked assets. Termination is designed to be instantaneous; once you confirm your request to terminate an AMM Instruction, the assets locked by the AMM Instruction will be made available in your spot account for re-use or withdrawal, subject to our Terms of Service. Learn more about how to terminate an AMM Instruction.

Viewing your open AMM Instructions

  1. Go to the left-hand navigation and choose Portfolio.
  2. Portfolio on lefthand navigation.png
  3. Choose the Liquidity tab.
    Liquidity tab under portfolio
  4. View your AMM Instructions under Open AMM Instructions.
    Open AMM Instructions.png
Warning: Using price boundaries that are relatively closer will result in increased income while the market trades within those boundaries but it also exposes customers to a higher risk of Impermanent Loss.

Please read our Risk Warnings carefully for more information.

Learn how to create an AMM Instruction on Bullish in this educational video:

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