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Lesson 14 of 90

What is the most important aspect of a market making engagement?

Incentive alignment. If the market maker's upside is aligned with the long-term health of the token — and not purely short-term extraction — liquidity quality tends to be stronger. Alignment can be achieved through structured compensation (retainer + performance metrics or loan + call option structures), KPI accountability, and transparency. Without alignment, even technically sophisticated firms may underperform.

Structure governs behavior.

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