Non-fragmented liquidity describes a market state where the total trading volume for a specific asset is concentrated in a single or a limited number of easily accessible venues. This concentration, rather than dispersion across many platforms, generally results in tighter bid-ask spreads and improved price execution for trades. It signifies market depth and efficiency.
Context
In digital asset markets, news often highlights the challenges posed by fragmented liquidity across numerous exchanges and decentralized protocols. Discussions frequently center on aggregation solutions and cross-chain initiatives aimed at consolidating liquidity to enhance market efficiency and reduce slippage for traders. Achieving this state is a goal for many market participants.
The custom-built DeFi application chain abstracts fragmentation, creating a high-performance liquidity layer now strategically positioned to capture the derivatives market.
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