Liquidity mirroring is often also termed as exchange re-marketing, wherein, the bot emits limit orders to a less liquid, larger spread market; and emits market orders on a more liquid, smaller spread market whenever the limit orders were hit.
Bot hedges any filled trades from your exchange on a taker exchange (e.g. Binance). Using liquidity bots, your customer can always see limit orders to trade with, which is usually possible only on busy exchanges.
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Market making bots are needed for illiquid products, e.g. your own exchange token, wherein, the bot creates limit orders based on certain configurable parameters, such as bid/ask depth and spread, to simulate an active market.
This Bot acts as a counterparty, trades with your customers, prevents pumping and dumping of tokens and more.