A Technical Overview of Atlas LP’s Spot Market Making Workflow

Introduction

Atlas LP is a multi-tenant software platform designed to help users run spot market making bots directly on their own centralized exchange accounts. By leveraging secure API connections and a robust workflow, Atlas LP ensures that users retain full control of their assets while automating the process of providing liquidity through limit orders. This post provides a step-by-step technical overview of how Atlas LP manages order placement, data synchronization, and account security throughout the market making process.

Secure API Management

Security is a foundational aspect of Atlas LP’s workflow. To interact with user exchange accounts, Atlas LP requires API keys with read and spot trading permissions only. Withdrawal permissions are never requested or required, reducing risk for users.

• Encryption: All API keys and secrets are encrypted using AES-256-GCM before being stored. Only the backend workers that communicate with the exchanges can decrypt the credentials, and secrets are never displayed again after initial entry.
• Verification: When a user adds a new exchange account, Atlas LP performs a detailed API verification. This includes checking the ticker, order book, symbol rules, balances, open orders, and recent trades. Optionally, a test limit order can be placed far from the market and cancelled immediately to confirm trading permissions.

Supported Exchanges

Atlas LP supports spot trading on the following centralized exchanges:

• Binance
• DigiFinex
• LBank
• BingX
• XT.com
• Biconomy
• Toobit
• CoinW
• P2B
• Azbit
• Dex-Trade

Futures and margin trading are not supported. Only spot limit orders are placed by the bot.

Strategy Initialization and Validation

The core of Atlas LP’s market making workflow is its Basic strategy, which operates by placing a ladder of limit orders around a fixed base price. Before a bot can start, all user-defined settings are validated to ensure compatibility with the selected exchange and symbol.

Key strategy parameters include:

• Spread min/max: Defines the band around the base price in basis points (minimum width of 40 bps).
• Day and hour bands: Allow for nested spread adjustments based on time.
• Number of bid and ask levels: Determines the depth of the order ladder on each side.
• Level spacing: Configurable from as little as 0.1 bps.
• Order size range: Randomized between user-defined min and max, always meeting exchange minimums.
• Tick interval: How often the bot recalculates and updates orders (from 0.5 seconds, default 3 seconds).

Settings are validated for correctness and compliance with exchange rules before the bot can be started.

Real-Time Data Synchronization

Atlas LP’s bots operate in a tick-based loop, where each tick involves several key actions:

1. Market Data Fetch: The bot retrieves the latest ticker and order book, using WebSocket streams or REST endpoints as available. If the data is stale or the order book is crossed, the tick is skipped to avoid erroneous orders.
2. Order Ladder Calculation: Based on the current market data and user-defined strategy, the bot computes the desired set of limit orders (the ladder) on both bid and ask sides.
3. Order Management:
   • Placing Orders: The bot places any missing limit orders required to complete the ladder.
   • Cancelling Orders: Only excess or mispriced orders are cancelled, minimizing unnecessary order churn.
   • Seeding Quotes: If the market has no quotes, the bot seeds one buy and one sell order around the base price to establish liquidity.
4. Account Sync: The bot synchronizes open orders, recent fills (including fees), balances, and logs all bot events. This information is displayed in the user console for transparency.
5. Daily Snapshot: Each day, the bot records a snapshot of the account’s asset value for historical tracking.

User Controls and Alerts

Atlas LP provides several controls and monitoring features to keep users informed and in command:

• Order Cancellation: Users can cancel individual open orders or all open orders for a symbol directly from the bot page. Stopping a bot halts new order placements immediately.
• Telegram Alerts: Users can enable Telegram notifications to be alerted when a running bot has had no fills for a chosen number of minutes, helping to monitor market activity.
• Error Handling: If the exchange rejects the API credentials at any point, the bot stops automatically and flags an error status.

Multi-Account and Multi-Symbol Support

Atlas LP allows users to register multiple exchange accounts and create a separate bot for each trading symbol. This flexibility enables users to manage liquidity provision across different markets and exchanges from a single interface.

Genuine Market Making: Ethical and Transparent

Atlas LP is designed for genuine market making, which means placing resting limit orders that any market participant can trade against. The platform strictly prohibits any form of wash trading, self-trading, or volume manipulation. Market making should always contribute to fair and transparent price discovery, not distort it.

Summary Table: Atlas LP Spot Market Making Workflow

Conclusion

Atlas LP’s technical workflow is built to provide a secure, transparent, and efficient way for users to run spot market making bots on their own exchange accounts. By focusing on robust API management, real-time data synchronization, and ethical market making practices, Atlas LP helps users automate liquidity provision while retaining full control and visibility.

Atlas LP does not guarantee returns, prices, trading volume, or listings.