Market depth foundation refers to the underlying availability of buy and sell orders at various price levels for a specific digital asset on an exchange. A robust market depth indicates high liquidity, meaning large orders can be executed without significantly impacting the asset’s price. This characteristic is crucial for efficient price discovery and minimizing slippage for traders. It provides a reliable environment for substantial trading activity.
Context
Building a strong market depth foundation is a primary goal for exchanges and decentralized protocols aiming to attract and retain trading volume. News often reports on liquidity incentives and partnerships designed to enhance order book density. A key future development involves integrating liquidity from various sources, including centralized and decentralized venues, to create more resilient and efficient markets.
MOVA Liquid's native derivatives platform leverages modular decoupling to achieve CEX-level execution, setting a new standard for institutional DeFi infrastructure.
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