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Lesson 11 of 90

Are market makers adversarial to projects?

No. Market making is an essential service - but it is not altruistic. All professional market makers are profit-motivated institutions. The outcome of an engagement is therefore dictated less by intent and more by structure. Poorly structured engagements can create misaligned incentives, while well-structured engagements align economic interests and produce mutually beneficial outcomes. The key is to understand how your market maker generates profit and to ensure that their incentives are compatible with your project's long-term health.

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