Subject
3 entries
Market Making
Bookmarks
Market Making (Lecture Notes 04a)
Lecture notes (module 4a) on market making — the practice of continuously quoting bid and ask prices to provide liquidity in financial markets, managing inventory risk and adverse selection in exchange for earning the spread. A core topic in market microstructure theory with direct practical application in algorithmic trading and quantitative finance.
Theoretical Advances in AMM Understanding
A technical deep-dive on theoretical advances in understanding automated market makers (AMMs) — covering impermanent loss, concentrated liquidity, and how AMM design choices create different economic tradeoffs for liquidity providers. Essential reading for DeFi protocol design.
Zillow Did Not Have Metallic Balls
Steve Buccini's post-mortem on Zillow Offers dissects why Zillow's iBuying program failed — they were making a market in illiquid assets with a flawed pricing model and no mechanism to cut losses. A case study in the difference between algorithmic pricing and actual market-making discipline.