For a new token launch, sign a market maker several weeks before TGE so there is time to agree KPIs, open exchange accounts, and position tokens and stablecoins on every venue. At launch, the market maker quotes two-sided markets from the first minute, keeps prices aligned between CEXs and the DEX pool, absorbs early volatility within agreed limits, and reports daily. New tokens usually use a token loan with call options, a hybrid with a small retainer, or a profit-share model; an LP-side partner can add depth beyond the project’s own treasury.
Key takeaways
- Sign weeks before TGE, not days.
- Agree how the opening price is discovered and how DEX and CEX prices are aligned.
- Position inventory on every venue before trading opens.
- Get daily reports in launch week; weekly after.
Timeline: from signing to launch week
| When | What to do |
|---|---|
| 6+ weeks before | Shortlist and brief market makers; compare proposals on the same scope |
| 4–6 weeks | Sign; agree KPIs, reporting, loan or fee terms |
| 2–4 weeks | Market maker onboarded on each exchange; sub-accounts and API keys set |
| 1–2 weeks | Inventory transferred; DEX pool design agreed; dry run of monitoring |
| Launch day | Quoting from the first minute; price alignment across venues |
| Launch week | Daily reports; review spread, depth, and inventory |
Timings are a planning guide, not a rule; some exchanges move faster than others.
What to agree before launch
- Opening price process: how the first price forms on each venue, and how the DEX pool is initialised relative to it.
- Volatility limits: how wide the market maker may quote in the first hours, and minimum depth it keeps.
- Inventory rules: whether loaned tokens may be sold outright, and price-impact limits.
- Communication: a shared channel and named contacts for launch day.
- Unlocks: the first unlocks after TGE and how they will be handled.
Launch-day failure modes
- No bids after the open because stablecoins were not on the exchange in time.
- Large price gap between the CEX and the DEX pool, drained by arbitrage.
- Market maker quoting one side only or pulling quotes during the first spike.
- Announcing the listing before the exchange.
The listing day playbook covers the first 72 hours in detail.
Frequently asked questions
When should we hire a market maker for a token launch?
Before you agree a listing date, and at least several weeks before TGE. Contracts, KYC with the market maker, exchange sub-accounts, and inventory transfers all take time.
Which deal structure is best for a new token?
New tokens often have more tokens than cash, so a token loan or a hybrid with a smaller retainer is common. A profit-share model or LP-side partner can reduce cash cost while keeping incentives tied to performance. Compare like for like: retainer vs loan, profit sharing.
Can a market maker set our listing price?
No one should promise a price. Opening prices come from the exchange’s opening mechanism (Coinbase, for example, uses an auction phase) and from demand. The market maker’s role is orderly, two-sided markets around whatever price the market finds.
Should we run a trading competition at launch?
It can help bring first traders, especially for perp markets, but only with a market maker quoting and anti-gaming rules. See trading competitions.