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Finance articles keep using the word "liquidity". What is liquidity and where can I get it? Quote: Liquidity Is a Slippery Slope The two major challenges wit
by man-and-laptop 8y ago
Finance articles keep using the word "liquidity". What is liquidity and where can I get it?
Quote:
Liquidity Is a Slippery Slope
The two major challenges with most DEX’s today are liquidity and UX. The DEX that will win over the masses in the next couple of years is going to be the one that has the liquidity of Binance and the UX of Coinbase. The problem is that there is a lack of standardization across DEXs — no common trading and liquidity protocol. This is the reason that most DEXs have low liquidity and volume — they simply do not share a common liquidity pool. There are many projects trying to solve this protocol problem today. The leader by number of DEX integration partners in this space currently is the 0x protocol and has a great chance of becoming that standard in 2019.
My understanding is that an asset is liquid if it can be sold for cash in little time.
- exolymph 8y agoLiquidity is provided by a sufficiently large pool of buyers.