25. What is a market-making fund? How to make markets?

Answer: Market-making funds are the main form in which stable funds play a role in the first stage. Initially, the stability fund had no money, only coins, and no independent operators. After the funds need to be invested in equal proportions, a new market-making fund will be formed, and other teams will manage the market-making fund and make the market. The goal of the market-making fund operation is to make DW20 grow steadily and gradually and complete the transition to a stablecoin. Processing after the transition is completed will follow community proposals. Market-making funds are traditional funds and are regulated by traditional financial laws.

In the value formation stage of meme coins, coin price fluctuations are adjusted through lock-up mechanisms and market-making funds. Details can be found in Chapter 3, Section 9.5 of the chainless white paper.

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