Learn with Alium: Hybrid Liquidity Explained

Learn with Alium

What is Liquidity?

Liquidity is a simple term used in a financial market as a measure of how quickly or easily a cryptocurrency or any asset can be converted to cash or other assets without difficulty or a significant impact on the market price. To further break it down, Forex is considered a liquid market considering the volume of daily transactions in comparison to real estate, or rare artifacts which are considered illiquid because they are not easily sold off or require a long process.

What is a Liquidity Aggregator?

A liquidity aggregator is a piece of software that enables users to access a pool of buy and sell orders from multiple liquidity providers/pools at the same time. Due to cryptocurrency market volatility, assets can be offered at different prices on different platforms.

What are Hybrid Liquidity Aggregators?

A Hybrid Liquidity Aggregator is exactly what it sounds like. In order to give traders the best possible pricing, a hybrid liquidity aggregator combines liquidity from both centralized and decentralized exchanges. With this, the trader will be able to place an order at the best possible price with little slippage.

Hybrid Liquidity Model by AliumSwap

Hybrid Liquidity Feature by AliumSwap

Due to liquidity problems in the market, AliumSwap has created a Hybrid Liquidity feature as a solution for its decentralized AMM exchange with multi-chain options, and cross-chain features. Multi-chain DEX allows users to trade any cryptocurrency from one token to another within the same blockchain, or exchange their assets by using the cross-chain feature. To fully understand what I mean, current DEXs AMM (Automated Market Marker) offer their users unique advantages at the expense of enjoying maximum profits and benefits. Also, DEXs suffer severe setbacks due to a lack of interoperability in transferring assets and platform interaction. And this is when Hybrid Liquidity features come into action…

Hybrid Liquidity Feature Release

Current Achievements of AliumSwap

Since its launch, there have been several significant progress and currently, the company’s Multi-chain DEX supports 10 blockchains, namely — Polygon, BnB Chain, Ethereum, HECO Chain, Fantom, Metis Andromeda, Moonriver, Moonbeam, Aurora, and OKC. Cross-chain feature together with the hybrid liquidity feature makes AliumSwap safe and secure from liquidity problems associated with DEXs.

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AliumFinance

AliumFinance

DeFi and NFT Ecosystem with AliumSwap Decentralized AMM Exchange with multi-blockchain option and NFT’s #blockchain #NFT #DeFi #cryptocurrency