TLDR

• Transparency issues in market making are significant, particularly with market makers that keep their strategies confidential, disadvantaging smaller projects by limiting evaluation and understanding of token performance and potentially leading to token manipulation.
• Reform differentiates itself by prioritizing transparency, integrating systems like a dashboard and reports that allow community and project tracking of all activities.
• Through these innovations, Reform is setting a new standard for transparency in the market making industry, ensuring projects have detailed insights into operations and liquidity, and preventing the surprises of sudden token dumps, fostering a more open and trustworthy ecosystem.

Introduction

Transparency has always been a huge buzzword in the industry. However, the practice is often overlooked by the centralized market makers.

For Reform, transparency is what differentiates us from the rest of the players. Our mission is to build an ecosystem where projects can thrive transparently - and this idea guides us as we build new technologies every day.

Let’s dive into how it works.

Centralized market makers

As stated in the previous chapter, the market making industry has always been dominated by large market makers. Unfortunately, these market makers are not transparent, which disadvantages smaller projects by harming their growth and token value. Especially for new projects, this hinders flexibility and progress. These market makers keep their trading methods and liquidity strategies confidential, which limits external evaluation and understanding of token performance and may lead to potential token manipulation.

Specific methods of trading and providing liquidity, including timing, size, and pricing, are also not disclosed. While they might publish basic data, essential variables of detailed reporting like the exact number of trades, profits made, and strategies used, are never published. For projects, this lack of transparency prevents them from evaluating and predicting the performance of their token.

In addition, these market makers involved also have the freedom to end their strategies for the projects they collaborate with once their agreement ends. This can cause token manipulation, including potential token dumping.

With that being said, the presence of transparent procedures can help projects understand the future trajectory of the project and the associated risk of them being unexpectedly sold off.

The Reform Approach

With transparency being a highly valued principle in crypto, it becomes the cornerstone at Reform to show trust and efficiency to operate in a decentralized ecosystem. Let’s dive into the process.

Reform’s principle of transparency is reflected in our technological advancements. We integrated systems such as the dashboard and monthly reports, which allow the community to track all the activities in the DAO. One of the most important pieces of information displayed on the dashboard is the trades that are executed by our algorithm.

When it comes to the trading reports, all trades, realized profits, our strategic token buybacks, and how we distribute them are all showcased in the report.

In addition, the on-chain balances are accessible with the public shared wallet addresses. Meanwhile, the centralized exchanges are available on view-only APIs and connected to the dashboard.