Stablecoin Market-Making Calculator
Quote both sides of a stable pair (USDC/USDT), earn the tiny spread on the volume you fill, and add any maker rebate. This estimates the gross income — then the honest reasons your realized number is lower.
Quote both sides of a stable pair (e.g. USDC/USDT), earn the spread on filled volume, and add any maker rebate. 1 bp = 0.01%.
Gross net over 30 days
$90.00
≈ +21.9% annualized on capital
Worked examples
Over 30 days — from the calculator above. Remember these are gross best-cases:
Modest book
$20k/day · 1.5 bps · no rebate · $5k capital
+$90
≈ 22% APR gross
Thin spread on steady volume adds up — on paper.
Volume + rebate
$50k/day · 1 bp · −0.5 bp rebate · $10k
+$225
≈ 27% APR gross
Maker rebates are where pros actually make it work.
Fees beat spread
$10k/day · 0.5 bp · +1 bp fee · $5k
−$15
If your maker fee exceeds the spread, you pay to trade.
Why realized is lower than gross
Market-making a stable pair looks like easy, delta-neutral yield, and the gross math above is real. The problem is everything the gross math ignores: adverse selection (you tend to get filled precisely when informed flow is running the price against you), the need for constant uptime and fast infrastructure to keep quotes at the top of the book, and fierce competition from professional market makers who receive far larger rebates than you can. And the tail risk that matters most: if the stablecoin de-pegs, your inventory can take a loss that wipes out months of thin spread income in a day. It's a genuine strategy — but it's a pro, infrastructure-heavy game, not passive yield.
For a delta-neutral edge that doesn't need you to win a latency race, the funding rate arbitrage calculator is a gentler starting point.
FAQ
Is stablecoin market-making profitable?
It can be gross-positive, but realized returns are much lower than the raw spread math because of adverse selection, competition from pro market makers, and infrastructure costs. Maker rebates are usually what tip it into worthwhile territory — and those favor large, established players.
What's the biggest risk?
A de-peg. Because you hold inventory of the stablecoin, a loss of the peg can cause a sharp, real loss that dwarfs the pennies-per-trade you earn from the spread.
Can a retail trader do this?
Technically yes, but you're competing with firms that have rebates, colocation, and full-time infrastructure. Without those, adverse selection tends to erode the thin edge. Go in with realistic expectations, not the gross number.
Estimates only and gross of adverse selection, slippage, downtime, and de-peg risk. Crypto is volatile and not FDIC-insured. Not financial advice.