A programmable, inclusive financial infrastructure like Velo’s can solve challenges of cross-border settlements and access to liquidity.
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.
- Recap11845
- Explained
By deploying a bot on a perpetuals exchange, the trader scaled $6,800 into $1.5 million through maker rebates and microstructure precision.
- 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.
1136 - 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.
51562 - 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.
1661 - 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.
4985 - News
Flare Network’s bridging technology and FAssets are bringing institutional and retail XRP holders into DeFi, tapping a massive pool of idle liquidity.
6304 - 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.
5506 - News
The project said several wallets had “coordinated a liquidity attack with an egregious malicious attempt” followed by “aggressive ZKJ sell-offs.”
3068 - Opinion
Despite crypto's rapid growth and decentralized ideals, its liquidity remains fragmented and fragile — mirroring traditional finance's hidden risks and exposing the market to sudden shocks when sentiment shifts.
3734 - Market Analysis
Bitcoin's recent rally occurred as funding rates turned negative, and BTC held on exchanges and OTC desks shrank.
27557 - News
PancakeSwap now offers one-click crosschain swaps with Across Protocol, aiming to reduce bridge risk and improve DeFi user experience across Arbitrum, Base and BNB Chain.
6842 - News
The mysterious $300 million leveraged Bitcoin long comes days after Wynn’s second $100 million leveraged Bitcoin position was liquidated, causing a near $25 million loss.
3484 - Use Case
A new generation of crosschain architecture aims to fix DeFi’s lack of coordination by aligning ecosystems rather than replacing them.
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