CoinDesk Podcast Network What October 10th Revealed About Market Makers
Feb 23, 2026
Jason Atkins defends market makers as the backbone preventing catastrophic volatility and keeping institutional capital deployable. He breaks down how recent liquidity breakdowns exposed systemic risks and why exchanges must harden systems. The conversation compares on-chain venues with centralized exchanges and makes a case for Hong Kong as the gateway for Western capital into Eastern markets.
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Market Makers Prevent Catastrophic Volatility
- Market makers are essential to prevent catastrophic volatility and make assets investable for institutions.
- Jason Atkins argued October 10 exposed what happens when APIs and liquidity providers fail, pushing volatility to institutional-unfriendly levels.
Harden Systems And Listen To Market Makers
- Build more robust systems and improve exchange–market maker collaboration to avoid repeat failures in volatile events.
- Atkins urged firms to harden systems and exchanges to take market-maker feedback on API and infrastructure design.
DeFi Venues Are Eating Incumbents With Better UX
- Decentralized venues have improved trading UX and preserved liquidity during stress, attracting volumes away from incumbents.
- Atkins cited PerpDex growth, Hyperliquid and LiDAR as examples where trading experience and liquidity kept users engaged.