News
Crypto markets see $635 million in liquidations as Bitcoin surges past $94,000, with traders eyeing a potential short squeeze toward $100,000.
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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.
- News
Blockchain analysts can provide clues in investigating the Mantra’s OM crash, but definitive conclusions would require a full forensic study, according to a CertiK executive.
1674 - News
Incoming US Treasury buybacks and a weakening US dollar may bolster Bitcoin’s appeal as a hedge against turbulence in the traditional financial system.
16026 - Opinion
The race to scale blockchain networks has created an unexpected problem of isolated pools of capital that make crypto harder, not easier, to use.
3095 - Analysis
Market makers are turning token loans into a profit machine and a death spiral for smaller crypto projects.
3476 - Opinion
Boutique market makers offer tailored liquidity solutions that address local challenges and provide stable financial access, while bridging liquidity gaps in emerging markets.
1260 - Opinion
The disconnect between Asia’s crypto liquidity hubs and US capital markets has hindered institutional adoption of digital assets.
5634 - News
President Donald Trump has overturned the IRS’s DeFi broker rule, a measure that had threatened to curb DeFi innovation.
8619 - News
ZKasino’s exploit wallet lost $27 million in Ether after a leveraged position was liquidated, as investors remain empty-handed nearly a year later.
31091 - News
The whale’s $340 million short position faces liquidation if Ether’s price falls below $1,119 amid growing investor fear.
12625 - News
The firm behind the Gutter Cat Gang NFTs said “niche technical issues” prevented the GANG tokens from launching on ApeChain on March 31, as initially planned.
1673 - Markets News
Bitcoin lost a key price support today, and one analyst says liquidity conditions forecast another BTC price drop to $72,000.
9460 - Analysis
The meltdown of the JELLY token on Hyperliquid is the latest DeFi exploit in a year already riddled with hacks.
2600 - News
The unknown whale netted at least $6.26 million from the Hyperliquid exploit and still holds over 10% of the total supply.
4141 - Opinion
DeFi needs to move from inflationary token emissions and to sustainable yield models to build lasting value and achieve mainstream adoption.
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