How does Market Making work?
An order-book strategy updates bid and ask orders as prices and inventory change. An AMM liquidity strategy instead allocates capital to pool positions and may rebalance ranges.
What should trading bot developers know about Market Making?
An automated quoting bot and an AMM protocol are different concepts. Spread or fee income alone does not measure profit: inventory losses and hedging costs can outweigh revenue.
Sources & further reading
Definitions are editorial summaries of the sources below. Protocol behavior and provider policies can change; consult the linked documentation for implementation details.