How to Become a Market Maker

Market makers on Convallax provide liquidity by quoting options via a WebSocket-based RFQ relay. When a trader submits a request for quote, connected market makers receive the RFQ broadcast, analyze the trade, and submit competitive prices. The best quote wins the trade, and settlement happens atomically on-chain.

How It Works

Connect to the relay

Open a WebSocket connection to the maker endpoint. You receive a confirmation message with the protocol version and server time.

WS /maker/v1/ws

If the relay requires authentication, append your API key:

WS /maker/v1/ws?apiKey=<your-key>

Receive RFQ broadcasts

When a trader submits a signed RFQ, the relay broadcasts it to all connected makers. You receive the full trade envelope with market data, option parameters, and a deadline.

{
  "type": "rfq",
  "broadcastId": "broadcast-456",
  "deadlineIso": "2026-06-15T12:00:00.800Z",
  "timeoutMs": 800,
  "envelope": {
    "rfqId": "abc-123",
    "conditionId": "0xa4ddc188...",
    "optionType": 0,
    "strikeBps": 50,
    "expiryUnix": 1735689600,
    "tradeSide": 0,
    "tradeSizeMicro": 10000000,
    "currentYesBps": 6200
  }
}

Submit your quote

Analyze the RFQ, compute your price, and reply before the deadline:

{
  "type": "quote",
  "broadcastId": "broadcast-456",
  "makerId": "my-mm-id",
  "quote": {
    "rfq_id": "abc-123",
    "side": "sell",
    "price": 0.12,
    "size": 10,
    "greeks": { "delta": 0.45, "theta": -0.02 },
    "spread_bps": 200,
    "expires_in_ms": 5000
  }
}

Win and settle

If your quote wins, the relay signs an on-chain Order on your behalf and the taker calls fill() to complete the atomic swap. USDC and option tokens exchange hands in a single transaction.

Core Quoting Loop

Step	Action
Connect	`WS /maker/v1/ws` — receive `connected` message
Listen	Receive `rfq` messages with trade parameters
Quote	Reply with `quote` message before `deadlineIso`
Win	Relay auto-signs on-chain order if your quote is selected
Settle	Taker calls `fill()` — atomic on-chain settlement

Winner Selection

Taker action	Winning quote
Buying options	Lowest valid price wins
Selling options	Highest valid price wins

Quote Validation Rules

Your quote must pass these validation checks:

Rule	Constraint
`rfq_id` match	Must match the original RFQ ID
Side	Must be opposite to taker’s side (taker buys → you sell)
Size	Must be ≥ 50% of the requested `tradeSizeMicro`
Price	Must be in `(0, 1)`
No-arbitrage	Buy price ≤ max payoff (i.e. ≤ `1 − K` for calls, ≤ `K` for puts)

Check Relay Status

Verify your connection and see how many makers are online:

GET /maker/v1/status

{
  "protocolVersion": 1,
  "makersConnected": 3,
  "wsPath": "/maker/v1/ws"
}

Environment Variables

If you are running your own relay instance, these variables control maker behavior:

Variable	Default	Description
`MAKER_RFQ_TIMEOUT_MS`	`800`	Quote collection window in ms (50–30,000)
`MAKER_API_KEY`	—	If set, required as `?apiKey=` on WS connections
`RFQ_ALLOWED_ORIGINS`	`http://localhost:3000`	Comma-separated CORS origins

Node.js Starter

A minimal WebSocket client to get started:

import WebSocket from 'ws';

const ws = new WebSocket('wss://your-relay.example.com/maker/v1/ws');

ws.on('open', () => {
  console.log('Connected to Convallax relay');
});

ws.on('message', (data) => {
  const msg = JSON.parse(data);

  if (msg.type === 'connected') {
    console.log('Protocol version:', msg.protocolVersion);
  }

  if (msg.type === 'rfq') {
    const { broadcastId, envelope } = msg;
    const { rfqId, strikeBps, optionType, tradeSide, tradeSizeMicro } = envelope;

    // Compute your price here
    const price = computePrice(envelope);

    ws.send(JSON.stringify({
      type: 'quote',
      broadcastId,
      makerId: 'my-mm',
      quote: {
        rfq_id: rfqId,
        side: tradeSide === 0 ? 'sell' : 'buy',
        price,
        size: tradeSizeMicro / 1_000_000,
      },
    }));
  }
});

ws.on('ping', () => ws.pong());

Provide Liquidity at Scale

If you’re interested in becoming a liquidity provider on Convallax, contact us at hello@convallax.xyz to discuss onboarding, integration support, and partnership terms.

​How It Works

​Core Quoting Loop

​Winner Selection

​Quote Validation Rules

​Check Relay Status

​Environment Variables

​Node.js Starter

​Provide Liquidity at Scale