SMM vs. MMM
Most Bridge can operate in two different modes: Single Market Maker (SMM) and Multiple Market Makers (MMM). Currently, Most Bridge operates in SMM mode, but it's designed to be able to transition to MMM in the future.
Single Market Maker (SMM)
In the SMM model, which is currently deployed:
One trusted entity handles all order fulfillment.
Allows for efficient batching of transactions.
Provides a single point of contact for monitoring and issue resolution.
Benefits for Users:
Consistent experience and predictable fees.
Potentially faster order fulfillment due to streamlined operations.
Considerations:
Relies on the reliability and liquidity of a single entity.
Multiple Market Makers (MMM)
In the MMM model, which may be implemented in future versions:
Multiple entities can compete to fulfill orders.
More decentralized approach.
Potential for more competitive fees due to competition.
Benefits for Users:
Potentially lower fees due to competition.
Increased resilience due to multiple liquidity providers.
Considerations:
May introduce some variability in user experience and fees.
Comparison
Decentralization
Lower
Higher
Operational Efficiency
Higher
Potentially Lower
Fee Competitiveness
Fixed
Potentially More Competitive
Liquidity Risk
Concentrated
Distributed
Most Bridge's architecture is designed to be flexible, allowing for a potential transition from SMM to MMM in the future, should that be deemed beneficial for the ecosystem and users.
By understanding these architectural components, you can better appreciate the balance of security, speed, and efficiency that Most Bridge provides in your cross-chain transactions.
Last updated