Liquidity Depth: Why It Matters for High-Value Settlements

Learn the in-depth difference between deep liquidity and shallow liquidity and how they impact high volume settlements and mitigate risk in decentralized finance.

Decentralized finance (DeFi) has emerged as a revolutionary force, reshaping traditional financial systems. However, liquidity is one critical factor that can make or break the success of DeFi protocols. The availability of liquidity, or the ease with which an asset can be bought or sold, is essential for the smooth functioning of DeFi markets.

What is Liquidity?
Liquidity refers to the ease with which assets can be bought, sold, or exchanged on decentralized platforms. It's crucial for efficient trading, fair price discovery, and the growth of various DeFi applications.

Read more How Deep and Shallow Liquidity Impacts High Volume Settlements