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Lesson 22 of 90

What are the most important metrics to track from my market makers?

The most important metrics are market makers as a percentage of depth and market makers as a percentage of maker fill volume. While trade volume and spreads are relevant, the primary role of a market maker is to facilitate efficient price discovery — and that requires both meaningful depth and actual execution against that depth.

You should also monitor your market maker's utilization ratio — the turnover on capital loaned (either a token loan or a trading capital deposit). A low utilization ratio suggests the market maker is not actively deploying the capital you've allocated. Track spreads, depth at 50bps / 100bps / 200bps from midpoint, uptime, and cross-exchange consistency.

KPIWhat It MeasuresBenchmark Target
Top-of-book spreadBid-ask spread at best prices<1% for mid-cap tokens
Depth at 50bpsCumulative order value within 0.5% of midpointExchange- and FDV-dependent
Depth at 200bpsCumulative order value within 2% of midpointExchange- and FDV-dependent
UptimePercentage of time with active two-sided quotes>95%
Loan utilizationTurnover on capital deployedHigher = more active deployment
Maker fill volumeMM share of total maker fillsTrack relative to depth contribution
MM % of depthMM contribution to total order book depthPrimary accountability metric

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