Market makers are centralised "funds" that are available to carry out any large or complex transaction. They behave as a reliable counterparty to trades.
Some strategies will require market makers to fulfill transactions, such as being the counterparty for an options trade. Thus, market makers form an important part of the protocol.
The dynamic hedging vault is also a new tool for market makers to use to purchase and sell options to add to any strategies they may have, such as arbitrage strategies and they can also access DeFi strategies with varying market correlation.
- Market makers will have access to DeFi options liquidity and in most cases these strategies will be predictable and will thus enable opportunities to profit against a predictable counterparty.
- Furthermore, market makers will have a greater ability to run DeFi options arbitrage, an opportunity that was quite sparse before rysk.