> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gtfo.vc/llms.txt
> Use this file to discover all available pages before exploring further.

# How market making on 1st works

Market making on 1st is designed specifically for mirror token markets and is structured to ensure deep, continuous liquidity from the moment a market goes live.

Each listed market on 1st pairs mirror tokens against USDC and is supported by a professional market maker operating under predefined parameters.

### **Market structure**

For every listed market:

* Mirror tokens represent future token unlocks under a fixed vesting schedule
* USDC is used as the quote asset
* A professional market maker provides two-sided liquidity in the order book

Markets are launched only once both sell-side supply and buy-side liquidity are prepared.

### **Role of the market maker**

Market makers on 1st are responsible for maintaining tight spreads, consistent depth, and continuous two-sided quotes.

They do this by:

* Quoting buy and sell prices across multiple price levels
* Managing inventory over time as trades execute
* Rebalancing positions as market conditions change

Market makers do not custody user funds and do not control settlement. They interact with the same order book as all other participants.

### **How liquidity is provisioned**

Liquidity on 1st is provisioned through a combination of:

* Mirror tokens backed by verified private-market allocations
* USDC supplied by the market maker

This structure allows markets to launch with meaningful depth on both sides of the book, rather than relying on organic order flow alone.

### **Continuous operation**

Market makers operate continuously according to agreed parameters, including:

* Spread targets
* Depth requirements
* Number of price levels
* Uptime expectations
* Minimum liquidity requirement

These parameters are enforced through market making agreements and are monitored in real time.