TLDR
A new Novora study finds that almost no crypto protocols publicly disclose their market maker agreements, leaving investors in the dark about key forces behind token liquidity and pricing.
- The study reports that less than 1% of over 150 protocols disclose market maker deals, with only Meteora named as doing so.
- Hidden market maker contracts can affect spreads, volatility, and sell pressure, yet are rarely explained to token holders alongside other weak investor disclosures.
- Standardized transparency frameworks and institutional pressure could push better reporting, making disclosure itself a competitive edge for protocols.
Deep Dive
1. Key Findings On Disclosure
The Novora study, covering more than 150 crypto protocols, finds that less than 1% publicly disclose their market maker agreements, with only Meteora highlighted as an example of full disclosure.Novora study
Overall transparency is weak in other areas too. Only 3% of protocols maintain a dedicated investor relations hub, and just 9% have adopted the 2025 Blockworks Token Transparency Framework, mostly in DeFi and not among major layer 1 or layer 2 networks.
Interestingly, 91% of the reviewed protocols generate traceable revenue, but investors often need to piece information together from analytics sites like Token Terminal or Dune rather than from the projects themselves.
Most protocols have real business data, but they rarely package it in a way that meets even basic public markets expectations.
2. Why Market-Maker Deals Matter
Market maker agreements govern how liquidity providers receive tokens, incentives, and trading obligations, directly influencing order book depth, spreads, and the risk of sudden sell pressure.
If a market maker has large token loans or aggressive incentive structures that are not disclosed, retail holders cannot judge how much of the volume is subsidized or how quickly inventory might hit the market.
The study warns that this opacity leaves a critical blind spot around price formation, since market maker arrangements sit at the heart of how a token trades day to day.
Without visibility into these contracts, token holders are effectively guessing how durable current liquidity and pricing really are.
3. What Could Change Next
Novora argues that better disclosure is a low cost way for protocols to differentiate and attract institutional capital, which is used to clear reporting on revenue, governance, and key contracts.Novora study
Only 38% of protocols share value directly with token holders through mechanisms like fee sharing or buybacks, while 62% offer governance only, so clearer communication around who benefits from market making and how could become a key trust signal.
As frameworks like the Blockworks Token Transparency Framework spread and more institutions push for standards, protocols that voluntarily publish market maker terms, unlock schedules, and revenue breakdowns could command a credibility premium.
For now, investors can tilt toward projects with explicit tokenomics docs and reporting, while teams that go beyond the norm on transparency may gain a real capital access advantage.
Conclusion
The study underscores that crypto is data rich but disclosure poor, especially around market maker deals that quietly shape liquidity and price behavior.
If even a small group of serious protocols starts treating these agreements like material contracts that deserve clear public summaries, it could reset expectations and make opaque setups stand out as a risk rather than the default.
CoinsKid.Com