LightSpringFox - Crypto Market Making (S5E2)

The podcast explores the transition from traditional quantitative finance to high-frequency crypto market making, featuring an anonymous guest, LightSpringFox, a quantitative trader at MGNR with a background in equity factor investing. The conversation contrasts low and high-frequency domains, highlighting the abundance of data and rapid feedback in high-frequency trading versus the vicious adverse selection and faster alpha decay. LightSpringFox identifies analytical and technical skills as key edges in crypto market making, emphasizing the importance of speed and creative optimization within the constraints of centralized exchanges. He shares his experience of independent market making, the daily life of a crypto market maker, and the management of technology risk. The discussion also covers the opportunities and challenges presented by the fragmentation of crypto exchanges.