On-chain market making involves providing liquidity through decentralized protocols (e.g., Uniswap, Raydium, Orca) using AMM pools rather than traditional order books. Key differences: (1) On-chain liquidity is permissionless and transparent — anyone can see positions and trade activity. (2) Returns are generated through swap fees rather than spread capture. (3) Impermanent loss is a unique risk not present in CEX market making. (4) Concentrated liquidity features (like those in Uniswap V3) allow more capital-efficient deployment but require active management. Most professional market making engagements focus on CEX liquidity, but projects should develop an on-chain liquidity strategy in parallel, particularly for tokens with significant DeFi utility.