Only 1 Out of 150 Crypto Projects Publicly Disclosed Market Maker Agreements — Novora Study

Less than 1% of protocols disclose liquidity provider arrangements

Out of 150 major cryptocurrency protocols, just one has publicly revealed the details of its market-making agreements. This finding comes from a new report by Novora, focused on investor relations and token transparency in 2026.

"New from Novora Research: IR & Token Transparency in 2026" — Novora (@novora_), original post

The study covered a wide range of project types: decentralized exchanges, lending platforms, perp-DEXs, Layer 1 and Layer 2 networks, cross-chain bridges, and CEX tokens. The fully diluted valuations (FDV) of projects in the sample ranged from $40 million to $45 billion. Researchers evaluated each protocol using a binary transparency framework based on publicly available information.

The sole project that disclosed its market-making terms was the decentralized platform Meteora, whose team published partnership details in its annual report for token holders covering 2025.

Why this matters

Opaque market-making arrangements represent a persistent risk vector for crypto investors. Novora founder Connor King described the situation as "the most significant transparency gap in our industry," noting that traditional financial markets routinely disclose such agreements, while "in crypto, every participant operates without this information."

A particular concern is the widely used loan option model, where projects lend tokens to market makers. The market makers then use these tokens to maintain trading activity and volume — often tied to exchange listing agreements. Critics argue that in practice, this structure incentivizes selling borrowed tokens. The market maker profits from price declines, while the project faces reduced liquidity and deteriorating market metrics.

A systemic gap in investor reporting

Beyond market-maker disclosures, the Novora study uncovered a broad disconnect between revenue generation and formal reporting. According to the data, 91% of protocols generate trackable revenue, yet only 18% of teams produce quarterly reports. Materials specifically aimed at token holders are published by a mere 8%.

Researchers noted that third-party analytics infrastructure has already reached maturity, with coverage on major platforms exceeding 85%. The underlying data is broadly available, but projects rarely translate it into formal reporting for their communities.

Transparency varies significantly by project type

A breakdown by category revealed uneven transparency across the crypto landscape. Perpetual futures protocols and decentralized exchanges led in both information disclosure and value accrual mechanisms. Layer 1 networks and infrastructure projects lagged behind despite their higher market capitalizations. Among blockchain networks, Ethereum ranked highest for transparency.

In early 2025, market maker CLS Global admitted to conducting wash trades involving the AI token NexFundAI — a project created by the FBI specifically to detect fraud in crypto markets. That case illustrated the kind of abuse that can flourish when market-making relationships lack transparency.