Tron has announced that Wintermute would be the official market maker for its native token, TRX, and a partner for the network’s whole ecosystem.
The deal enables Wintermute to offer liquidy for TRX trades with major tokens across exchanges that list it. This move will boost the accessibility to TRX. Data on June 2022 by CoinMarketCap showed that it ranked 13th in overall market capitalization, nearly reaching $8 billion.
Wintermute director of business development David Micley explained that the company was “thrilled” to become Tron’s liquidity provider.
“This latest partnership between Wintermute and Tron is an extension of our efforts to partner with leading DeFi projects and offer our support through what we do best: making markets more liquid,” Micley said.
In addition to being TRX’s liquidity provider, Wintermute will provide other marketing initiatives, such as helping TRX to develop a more sustainable liquidity model and cultivating competitive spreads in any market condition. Wintermute will also offer guidance to improve the Tron network ecosystem in general.
“There is a lot of exciting activity taking place in the TRON ecosystem and it’s been great to find opportunities to contribute,” Micley added.
At the beginning of September, Tron named Wintermute as the newest DAO Reserve whitelisted member. Wintermute now has the access to mint and redeem USDD, a decentralized stablecoin powered by the Tron blockchain.
Wintermute is now the official market maker of TRX by @trondao, offering our support through what we do best - making markets more liquid.— Wintermute (@wintermute_t) September 12, 2022
Full article 👇https://t.co/iEMCUiItFo pic.twitter.com/9XtkdwABbC
The stablecoin adopted a hybrid model, meaning that the operation combines algorithmic mechanisms and collateral backing. USDD minting happens when a user burns their TRX. By burning more TRXs, users will be able to gather more stablecoins. The release of USDD reportedly increased activities within the Tron ecosystem.
Justin Sun founded Tron in September 2017 to accelerate internet decentralization via blockchain. The network’s mainnet was launched in May 2018. Tron then integrated Web3 service BitTorrent into its ecosystem, adding the service’s 100 million monthly active users into the network. The network also replaced Ethereum as the biggest circulating supply holder of Tether’s stablecoin, USDT, in April.
Tron became DAO certified, meaning it was fully decentralized, in December 2021. This transition made all activities conducted within the network governed by its community members.
Per August 2022, data showed there were 109 million user accounts on the Tron network, recording 3.7 billion total transactions. Tronscan also reported that Tron’s total value locked (TVL) was $13.2 billion, making it a network with the second highest TVL after Ethereum.
Wintermute is a U.K.-based global market maker founded in July 2017 by Harro Mantel, Evgeny Gaevoy and Yoann Turpin. The company facilitates decentralized finance projects. It has worked with several other digital asset companies other than Tron.
According to Wintermute, it aims to increase user autonomy in decentralized finance. To achieve the objective, the company developed a tailored model to reduce the influence of crypto whales and market takers on market prices.
As a liquid provider, Wintermute acts as both a buyer and seller in a trade. It will immediately buy an asset when a crypto trader places a sell order. On the other hand, the provider will immediately sell its held assets when there is a purchase order. This system will reduce the spread—the discrepancy between selling and buying prices. By providing liquidity on major crypto exchanges, Wintermute enables more participants in decentralized finance.