A new study by Novora has revealed a major transparency gap across the digital asset sector, with fewer than 1% of crypto protocols publicly disclosing their market-making arrangements. The research reviewed more than 150 major protocols across sectors such as decentralized exchanges, lending platforms, perpetual futures, layer-1 and layer-2 networks, and cross-chain bridges.
Among all projects analyzed, only the decentralized liquidity platform Meteora was found to have shared public details about its market-making terms, referencing information from its 2025 token holder report. The reviewed protocols ranged widely in size, with fully diluted valuations between approximately $40 million and $45 billion.
Investor Reporting Practices Remain Limited Across Sector
The findings highlight broader investor communication weaknesses across crypto markets. While 91% of protocols were shown to generate measurable revenue, only 18% issued quarterly updates, and just 8% released formal reports for token holders.
Data validation for the study relied on widely used analytics platforms such as Artemis, Token Terminal, Dune Analytics, DefiLlama, and Blockworks Research, indicating that relevant operational data exists but is rarely formalized into accessible disclosures.
Market-maker agreements have faced growing scrutiny due to concerns that certain structures may incentivize aggressive token selling. Regulators, including the U.S. Securities and Exchange Commission, have previously pursued enforcement actions against firms accused of manipulating token prices.
Analysts warn that improving disclosure standards could strengthen investor confidence and reduce risks tied to poorly structured liquidity arrangements, particularly as crypto markets continue to mature and attract institutional participation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.