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Off-topic-ish, but curious how this community would approach liquidity bootstrapping on a small orderbook

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by COINS NEWS 5 Views

Hey everyone,

I know this isn't exactly the main focus of this community, but I figured crypto folks deal with liquidity/market-making problems more than most, so wanted to get some perspective here anyway.

Thinking through a scenario involving a small/mid-size orderbook where the operator has to inject their own liquidity daily just to keep the book from being empty, but still can't attract organic counterparties — outside market makers willing to fill the other side of the book.

The scenario:

The book relies almost entirely on liquidity injected by the operator, not organic flow.

Growing the user base doesn't fix it, since most new users come in as directional takers, not liquidity providers.

The real gap is attracting people/bots who specifically do market making.

What I'm trying to understand:

What kind of incentive structures actually work to bootstrap liquidity on smaller books/pools (fee rebates, liquidity mining, MM programs, etc.)? A lot of this feels adjacent to what DEXs and small token pairs deal with.

How much does API/tooling quality matter for getting market-making bots to even consider quoting on a new, small book?

Is there a minimum liquidity/volume threshold below which it's just not worth trying to attract professional MMs?

Has anyone here dealt with this kind of liquidity cold-start problem on a DEX, small CEX pair, or similar, and has lessons that'd generalize?

Purely interested in the mechanics/architecture side — curious how this community, which deals with liquidity mining and AMM design constantly, would think about it. Appreciate any insight, and apologies again if this is a bit outside the usual scope here.

submitted by /u/Previsaoio
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