Sidepit Proof Run

Bitcoin dropped hard this week, and structurally, nothing broke. The spreads held. The books held. The drama wasn't in the plumbing — it was in the behavior: people sold the bottom, and the machines kept trading straight through it.

That's the whole point of the Proof Run. We launched Alpha, our first incubated market maker, and ran it live, in public, on real Bitcoin, every day. When the market goes crazy, the structure holds.

What we're proving

1 · Better fills for takers. A better price than the open market, even at size.

2 · Spread capture for the maker. Alpha earns the spread it quotes — the engine that bootstraps the venue's liquidity.

The week

Alpha held a tight market, and tightened into the volatility.

Two-sided quotes every day, ~99% of the liquidity, capturing about half the spread on every fill. As the tape got more violent, the spread didn't widen out and run — it tightened. By Day 5 it was the tightest of the run yet (8.1 bps), with the Deribit hedge reference covering the full session for the first time.

Sidepit vs Hyperliquid 5-minute candles — Sidepit's wicks stop short of Hyperliquid's on every spike.

Sidepit (blue) vs Hyperliquid (orange). Hyperliquid's wicks stab deeper on every spike; Sidepit's stop short — the firm quote that doesn't get dragged to the tick-low.

Half-spread captured per fill held as volatility rose; quoted spread stayed tight near 10 bps and tightened to 8.1 bps by Day 5.

Capture held as volatility rose; the quoted spread stayed tight and tightened into the week.

Run to date · 5 days: 1,026 fills · 1,553 contracts · ~99% maker-provided · 9.0 bps avg spread · 5.1 bps captured per fill. Capture-stream floor — true counts run higher.

Straight about what this is: a closed proof loop — our own maker, our own aggressive taker, on live price action — and pre-hedge while we finish the Deribit book. Not external revenue yet; the mechanism and the edge are what week one proves. Figures are basis-clean (Sidepit trades the dated future; the basis vs the reference is measured and removed).

The raw charts — Sidepit vs reference, per day

Day 1 · 06-02 Day 2 · 06-03 Day 3 · 06-04 Day 4 · 06-05 Day 5 · 06-06

From the desk · Jay

The market may have found its bottom at 59,100, and it could be breaking out from here. We called the capitulation — bearish since 112k — and it happened.

This could be the low. Could be an interesting summer.

Follow @jaybny for the calls →

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The structure held.

The week

From the desk · Jay

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