Advancing Onchain Market Making: A Purpose-Built DEX for Strategic Liquidity

Advancing Onchain Market Making: A Purpose-Built DEX for Strategic Liquidity

Jen Albert

Jen Albert

Apr 21, 2025

Apr 21, 2025

DeFi, Market Making, Trading Infrastructure, Carbon DeFi, Bancor, DEX, Liquidity Management, Arbitrage, Strategy, Order Types
DeFi, Market Making, Trading Infrastructure, Carbon DeFi, Bancor, DEX, Liquidity Management, Arbitrage, Strategy, Order Types
DeFi, Market Making, Trading Infrastructure, Carbon DeFi, Bancor, DEX, Liquidity Management, Arbitrage, Strategy, Order Types

Why Carbon DeFi was built from the ground up for market makers — and what it changes about onchain execution.


DeFi has unlocked permissionless access to trading- but its infrastructure was never built for professional market making. Key tools like deterministic execution, spread control, and strategy-level customization remain absent in decentralized exchanges.Bancor introduces Carbon DeFi, a purpose-built DEX centered on precision, control, and programmable liquidity that far surpasses anything available on centralized and decentralized exchanges.



1. The Problem: DeFi Isn’t Built for Market Makers

Market makers need more than passive liquidity. They need control over:

  • Pricing logic


  • Spread configuration


  • Directional execution


  • Real-time adjustability


  • Protocol level MEV protection


DeFi protocols today prioritize accessibility and composability but ignore these execution fundamentals. Positions are pooled, rigid, and difficult to adapt — leading to inefficiencies and risk exposure that professional market makers can’t accept.



2. Carbon DeFi: Execution Without Compromise

Carbon DeFi introduces a new foundational DeFi primitive, Asymmetric Liquidity- developed by Bancor, the originator of the constant product AMM and concentrated liquidity.


Unlike traditional AMMs, Carbon DeFi lets market makers design one-directional, customizable strategies with:

  • Maker-defined pricing


  • Deterministic fills


  • Advanced automation


  • Strategy-level capital control


  • Finality without slippage


  • Native Strategy Adjustment



3. Execution Primitives Built for Strategy

3.1 Auto-Compounding Liquidity

  • Custom spreads


  • Defines bid/ask ranges


  • Auto-reinvests earned fees


3.2 Limit Orders

  • Establish soft floors and ceilings in the order book


  • Maintain integrity during volatility


  • Orders fill only at the exact quoted price — no slippage


3.3 Range Orders

  • One-directional execution over a defined price interval


  • Ideal for gradual accumulation or distribution


  • Offers partial fill support and execution continuity


3.4 Recurring Linked Orders

  • Automate buy-low, sell-high trading cycles


  • Recycle proceeds from one leg of a strategy into the next


  • Maintain steady liquidity presence and price structure


  • Support peg stability, volatility capture, and reactive execution



4. Built-In Tools for Institutional-Grade Execution

Carbon DeFi includes a complete trading suite:


5. Structural Benefits for Professionals

With Carbon DeFi, market makers get:

  • Custom spreads & deterministic pricing


  • Directional trading without pools


  • Onchain adjustability


  • Full protocol-level MEV protection


  • No protocol fees


  • Partial fill support



6. Built-In Solver System

Carbon DeFi’s built-in solver system executes chain-wide arbitrage, ensuring efficient order fulfillment.

  • 200x faster than previously published frameworks


  • Precision down to the quadrillionths


  • Unmatched computational efficiency across all AMM types


  • No dependency on external takers


This system is powered by Marginal Price Optimization, a breakthrough in arbitrage computation that focuses solely on the marginal price frontier — where the optimal trade already exists.

📄 Read the Bancor research paper:
Marginal Price Optimization — A New Framework for Arbitrage and Routing in AMM-Driven Markets



Conclusion: Onchain Liquidity, Professional Execution

Carbon DeFi transforms onchain trading from pooled liquidity to programmable execution.


It puts control back in the hands of market makers — enabling capital to follow logic, not just price. It replaces workaround-driven execution with fully native functionality — specifically designed for those who move markets.


🔗 Explore Carbon DeFi: carbondefi.xyz


📩 Contact: [email protected]

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Carbon DeFi is a product of Bancor and isn't affiliated with Carbon - the cross-chain protocol built by Switcheo Labs

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Carbon DeFi is a product of Bancor and isn't affiliated with Carbon - the cross-chain protocol built by Switcheo Labs

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Carbon DeFi is a product of Bancor and isn't affiliated with Carbon - the cross-chain protocol built by Switcheo Labs

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