Kineko

A Market Maker (MM) on the Kineko Protocol is a sophisticated participant that is responsible for creating new events/markets/outcomes, offering odds and laying bets. Data updates are possible in bulk transactions.

Two requirements are to be fulfilled to be recognized as a Market Maker in the Kineko Protocol. A minimum amount — that is a governed metric — has to be put up for liquidity in the Money Pool by the Market Maker in order to be able to open markets, supply odds and accept bets. If this requirement is not met, odds by said Market Maker will not be quarriable by the end-user and the protocol will reject any incoming requests before matching the bet.

Additionally a Market Maker has to put up collateral in $KKO, this will be determined by governance. This collateral will be frozen once fraudulent behavior is recognized by Governance, and burned if a guilty verdict is decided.

By protocol design Market Makers are competitors by odds-priority. Therefore creating an environment that drives Market Makers to efficiency and benefits the protocol end-user by prioritizing better odds. With that encouraging an interrelation between growing protocol usage volume and maker-side liquidity.