Arthur Hayes encouraged fellow Bitcoin enthusiasts to stay focused, highlighting a significant uptick in dollar liquidity.
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.
The LSDFi sector’s total value locked has grown 5,870% since January as ETH holders seek better yields.3364
Coinbase crypto exchange has been removing dozens of trading pairs in an effort to improve liquidity on its platforms.6420
Unsustainable financials and low fees generated by Lido on Solana were two of the main reasons for the sunsetting.5804
The initial impact amounted to 20 Ether, worth $31,000, while the validator involved has now been taken offline.3043
The Ethereum co-founder proposes a solution that could lower the likelihood of any individual liquid staking provider growing to a point where it poses a systemic risk.7779
Tashi and Swing will integrate Wormhole bridged tokens for USDC, USDT, wETH and others, potentially making Cosmos DeFi easier to use.2696
Despite the so-called FUD, Changpeng Zhao said in reality, the crypto industry has scored a number of massive wins in recent weeks.4470
The VC firm had received a grant from the project in return for locking $40 million worth of liquidity in SYN.6391
Imperial College London announced a collaboration with AI startup FluidAI to tackle major issues in the crypto market, such as liquidity aggregation.6348
The liquidation event saw one trader lose $55.9 million, while another saw $10 million worth of hedged positions get liquidated.9953
Coinbase’s Base network completed its phased launch on Aug. 9 and is officially open to end-users.11116
The exchange faces ongoing rumors about its falling stablecoins reserves and an alleged investigation by Chinese authorities.13501
The hacker drained several pools on Curve Finance, stealing roughly $70 million, but has gradually started returning funds to various projects.8123
The proposal drew mixed reactions from the community, with some criticizing the strategy for buying more CRV even as others are looking to shed exposure.3303