Stellar's Decentralized Exchange faces a liquidity problem that market makers can solve. The SDF built Kelp, a free open-source trading bot in Golang that automates market-making strategies on Stellar's DEX and centralized exchanges, with v1.7.1 now available.
Stellar's built-in Decentralized Exchange has near-zero fees but struggles with liquidity, a common challenge for all exchanges. Market makers profit by placing buy and sell offers at different prices, capturing the spread. To help automate this process, the Stellar Development Foundation created Kelp, a 100% open-source trading bot written in Golang. Kelp includes three pre-built market-making strategies (buysell, balanced, and mirror) and allows developers to create custom strategies. The bot runs 24/7 to manage offers and spreads, with over 1,600 downloads since its 2018 release. Version 1.7.1 is now available, and a UI is coming soon.
