A Designated Market Maker (DMM) plays a crucial role in the trading ecosystem of digital assets. This entity is responsible for providing liquidity to a specific market by continuously buying and selling assets. Their goal is to facilitate smoother and more efficient trading.DMMs maintain an inventory of assets to ensure there are always buy and sell orders available. This helps reduce price volatility and allows traders to execute orders quickly without significant price impact. By doing so, they enhance market stability and confidence among participants.In return for their services, Designated Market Makers often receive incentives, such as reduced trading fees or access to exclusive trading opportunities. Their presence is especially important for less liquid markets where trading volumes are lower, as they help attract more participants and improve overall market dynamics.