News
In a new staff statement, the SEC clarifies that certain crypto liquid staking practices do not constitute securities offerings, marking a step toward clearer digital asset regulation.
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Liquidity News
In the cryptocurrency market, liquidity fundamentally refers to how simple it is to exchange one coin for another (or government-issued fiat currencies). Order books, similar to those seen on a stock market, are one method to achieve liquidity. Here, buyers and sellers of assets enter orders, detailing the price and quantity they are willing to pay for the asset they wish to acquire or sell. The asset’s price is then determined by an exchange, such as a centralized exchange, matching buy and sell orders.
A market maker, an agent who is always prepared to purchase and sell specific assets, can be used as an alternate method of supplying liquidity to the market. For example, decentralized finance (DeFi) has centralized exchanges that serve as market makers, like Binance (a company). However, a decentralized counterpart that replaces a centralized market maker is one of the intriguing features of DeFi. For instance, tokens can be swapped using a decentralized exchange (DEX) like Uniswap rather than a centralized exchange.
Furthermore, to establish a liquid DeFi system, liquidity pools are important. In order to have enough funds in a liquidity pool, liquidity providers (LPs) are needed, who put a large sum of money into the pool. Because liquidity providers help the protocol provide liquidity, they receive a reward in return. This reward is generated by the transaction fees, which are paid by the pool’s users.
- Market Update
Bitcoin eyes upside breakout to $122,000, but fading spot ETF flows, lack of volumes and seasonality could stall bullish momentum thereafter.
2479 - Market Analysis
Bitcoin delivers a classic liquidity grab with a correction below $115,000 only to bounce back, while traders eye a BTC price showdown with new all-time highs next.
7331 - Altcoin Watch
Ether’s bullish outlook strengthens as Bitcoin dominance falls below 60%, its lowest since February.
4981 - News
Societe Generale will provide liquidity for 21Shares’ Bitcoin and Ethereum ETPs, expanding access for institutional crypto investors in Europe.
3201 - Altcoin Watch
XRP price is down today due to overheated conditions, but analysts say it’s a normal market pullback that could precede a stronger rebound in the short term.
19572 - Explained
By deploying a bot on a perpetuals exchange, the trader scaled $6,800 into $1.5 million through maker rebates and microstructure precision.
- Recap
A programmable, inclusive financial infrastructure like Velo’s can solve challenges of cross-border settlements and access to liquidity.
15251 - Explained
Understanding the distinction between tax season and tax year is crucial for managing deadlines and avoiding penalties.
- Opinion
Unified liquidity breaks DeFi’s oracle dependency, enabling truly permissionless leverage and shorting for long-tail tokens, and ushering in a scalable, composable and censorship-resistant financial market.
1205 - News
A crypto trader turned $6,800 into $1.5 million with a one-sided quoting strategy, dominating over 3% of maker volume on a major exchange in just two weeks.
52050 - Opinion
The explosion of new blockchains has fractured DeFi’s once-unified liquidity, threatening its core advantage of composability. Without infrastructure that seamlessly connects siloed markets, DeFi risks losing its revolutionary qualities.
1798 - News
“The panic of ‘22 showed that much like in TradFi, liquidity and solvency are intimately bound up with each other,” said Cycles’ Ethan Buckman.
5023 - News
Flare Network’s bridging technology and FAssets are bringing institutional and retail XRP holders into DeFi, tapping a massive pool of idle liquidity.
6717 - News
Over 28% of the total Ether supply is now staked, signaling that many investors are gearing up to hold their assets for the long term.
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