Out of 150 major protocols, only one has publicly disclosed its collaboration terms with market makers, according to specialists from Novora.
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The study covered leading project types: decentralized exchanges, lending platforms, perp-DEX, L1 and L2 networks, cross-chain bridges, and CEX tokens. They varied in FDV from $40 million to $45 billion.
Experts evaluated the protocols using a binary transparency system that considered disclosure practices and external data coverage. The assessment was conducted using open sources.
It was found that less than 1% of projects publicly share their terms with liquidity providers. The only exception was the decentralized platform Meteora, which detailed its partnership in the 2025 annual report for token holders.
Most crypto projects disclose information about revenues (green lines). Source: Novora.
“The most significant gap in the transparency of our industry,” described the situation by Novora founder Connor King.
According to him, similar agreements are regularly disclosed in traditional markets, while “in the crypto sector, every participant operates without this information.”
The lack of transparency in agreements with market makers remains a long-standing issue in the crypto industry. Some agreements are poorly thought out and carry hidden risks.
For instance, under a common credit option model, projects provide market makers with tokens on credit. They use these to maintain trading activity and volumes—often as part of listing agreements.
Critics argue that this structure merely encourages the sale of borrowed coins. Prices drop, benefiting the intermediary. Consequently, startups face immediate liquidity declines and worsening market performance.
Reporting Gap for Investors
The study revealed a systemic shortcoming: projects rarely establish communication with investors. According to Novora, 91% of protocols generate traceable revenue, but only 18% of teams release quarterly reports, and just 8% provide materials for token holders.
Meanwhile, external analytical infrastructure has matured, with coverage on major platforms exceeding 85%. Basic data is widely available but rarely turns into formal reporting, specialists noted.
Breakdowns by project type showed uneven transparency. For example, perpetual futures protocols and decentralized exchanges lead in information disclosure and value extraction mechanisms. In contrast, L1 projects and infrastructure platforms lag behind, despite higher capitalization.
Among networks, Ethereum ranks highest in transparency. Source: Novora.
Recall that in early 2025, market maker CLS Global admitted to fictitious trading of the AI token NexFundAI, created by the FBI to detect fraud.