What Is the Role of a “Market Maker” in a CLOB System?

In a CLOB system, a market maker provides liquidity by simultaneously placing both buy and sell limit orders for an asset. They profit from the bid-ask spread ▴ the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask).

Their activity tightens the spread and ensures continuous liquidity, reducing slippage for other traders.