SO WHAT’S THE BIG DEAL ABOUT LIQUIDITY?

For those who are not familiar with the concept, Liquidity refers to the extent to which a market allows assets to be bought and sold at stable prices. Lower liquidity tends to result in a more volatile market (especially when large orders are placed), and it causes prices to change more drastically; whereas higher liquidity creates a less volatile market, and prices do not fluctuate as significantly. Decentralized exchanges have historically lacked a large enough user base to command a liquidity base. Therefore, the user experience was poor and the fees were high.

HOW WILL KYBER NETWORK EXPAND LIQUIDITY FOR DEX BROKERAGE?

The Kyber Network is an on-chain liquidity protocol with a unique reserve system model that not only provides our traders the liquidity for price matching, but also provides a stable environment to trade in.

Each of the reserves on Kyber represents decentralized liquidity powered by the community. The reserves comprise of dedicated liquidity providers that are connected to diverse stakeholders in the ecosystem. These include anyone tapped into the system creating an extensive network of reserves for everyone to trade through.