By Steven McKie CEO and Matthew Prewitt  cryptoeconomic advisor at Amentum Capital
By Steven McKie CEO and Matthew Prewitt cryptoeconomic advisor at Amentum Capital

Decentralized Liquidity is the backbone of DeFi

Algorithmic-based smart contract liquidity pools such as Ethereum’s Uniswap, or privacy-focused, off-chain decentralized exchanges such as Starkware’s StarkDEX are just two examples of projects leading the charge. Inbound/outbound liquidity is essential for the creation and growth of financial markets.

Algorithmic-based smart contract liquidity pools such as Ethereum’s Uniswap, or privacy-focused, off-chain decentralized exchanges such as Starkware’s StarkDEX are just two examples of projects leading the charge. Inbound/outbound liquidity is essential for the creation and growth of financial markets. Price discovery, and the ability to move in and out of trade positions, whether they’re from a big institutional firm, or a small-time trader, remains key if crypto is to reach maturity; where its aggregate daily volume could sustain at levels comparable to the legacy financial system. It is not exactly a secret that the blockchain and cryptocurrency industries have a liquidity problem. Large trades in all but the most popular assets move the market to an alarming degree. This volatility then causes a cascade of ills.  First, it decreases the credibility of the markets due to the reality or appearance of manipulation.  Second, it makes people nervous about holding assets,...continued

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