The Block releases market maker guide, outlining key frameworks for token projects to evaluate liquidity partners and avoid costly mistakes in volatile markets

Binance banned profit-sharing MM structures and mandated full contract disclosure in March — so projects now know *who* their MM is, but still can't verify *what* they're doing with borrowed tokens on-chain. The token loan model remains the core failure point: MMs get millions in tokens under vague liquidity mandates, and without on-chain wallet tagging, there's no way to distinguish genuine two-sided depth from a slow dump timed against retail bid walls. Good frameworks help, but the information asymmetry is structural until MM activity is transparent on-chain.

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