Chart of The Day: CEXs’ Liquidity Drying up The bid/offer spread is the difference between an asset...This spread can be used as a measure of liquidity....A small spread indicates higher liquidity as there are more market participants, and a larger spread...The bid/offer spreads for BTC and ETH are widening to new highs.

Liquidity is spreading across layer 1s and 2s as multi-chain becomes the new norm.

...given point in time, which can be impacted by a variety of factors, such as: Order book and bid/ask spread...Tight bid-ask spreads High levels of trading activity – this can be indicative of participation, interest...Bid-ask spreads have, on average, continued to decline, reaching multi-year lows.

...works on the technical level shortly; but it’s worth understanding that aside from offering tighter spreads...A searcher takes advantage of the price discrepancy, capturing the spread....The goal here is better execution: tighter spreads, reduced slippage, and latency-competitive fills,...Today Solana spot spreads are sub 1 bps, in many cases even tighter than Binance.

Namely, this model spread liquidity thin across an infinite price range leading to poor capital efficiency...The formula then calculates the optimal bid-ask spread of a pair depending on the book’s depth....Finally, Elixir begins placing bids and asks based on the spread.

...at 9.36%, or supply USDT, earning 7.74% while borrowing at 9.68%.Note that USDC creates a positive spread...(earning more than you pay), while USDT creates a negative spread (paying more than you earn)....This creates a leveraged position where users earn the spread between Hyperion’s LP yields and Echelon...

This is akin to traditional market makers who widen bid-ask spreads in volatile markets to generate higher...XYK models are not capital efficient, with liquidity spread over an infinite range....As seen above, liquidity is spread thinly over every price point, causing trades to incur high slippage...is added) and magnitude of the bid-ask spread.

This results in a spread between borrow and lending rates....It enables zero-spread loans by automatically matching lenders to borrowers wherever possible....Improved Borrow and Lending Rates As mentioned above, the spread between borrow and lending rates is...However, once the positive spreads between the rates return, Morpho will re-enable P2P matching.

All three protocols have no spread on BTC/ETH/AVAX, and a small spread on other long-tail assets....LPs pocket the spreads, adding an additional source of yield for them....But if we consider the total cost (trading fee + spread), swapping an asset on Mycelium is likely to...

...quickly dumped into the market could certainly cause some brief dislocations, however the ETH/ETH-PERP spread...And although Ethena’s exchange risk is spread across numerous CEXs, these risks ultimately apply to all...While there should be some spread given that the delta-neutral basis trade is more risky than simply...

As a result, liquidity is spread thinly across the true range....Liquidity is spread uniformly....Liquidity spread is discretized through its segmentation of prices into different price bins....The unique surge pricing mimics a traditional market maker’s strategy of charging high spreads (or, in...

...need to consider the liquidation risk from borrowing ETH from Aave and interest rate risk from the spread...This results in a spread between borrowing and lending rates....It enables zero-spread loans by automatically matching lenders to borrowers wherever possible.

...finance, evidenced by year-over-year increases in deal activity, reduced closure times, tighter bid-ask spreads...Secondary market platforms like Forge and PM Insights reported tighter bid-ask spreads on late-stage...Acceleration of tokenization and more wide spread participation among sophisticated investors and retail...

This created a favorable environment for banks because funding costs were low and the spread they could...Banks started raising deposit rates but the spread between the rates they were offering and those that...US Treasuries are typically considered to be highly liquid securities, but spreads started widening in...

For the fixed rate, the AMM uses quantitative models to place a spread on the IPOR rate, with the goal...Morpho alleviates the high spreads between lending and borrowing rates by matching borrowers and lenders...USDT utilization on Aave and Compound reached 100%, and the IPOR AMM had very wide spread quotes on USDT...

Aggregators provide users access to tighter NFT spreads and the ability to sort NFTs by traits and floor...listing program, users are encouraged to list NFTs at reasonable prices, resulting in tighter price spreads...Tighter price spreads mean traders and collectors receive optimal prices and a better experience overall...

Aggregators provide novice and professional users access to tighter NFT spreads and the ability to sort...Users are encouraged to list NFTs at reasonable prices, which results in tighter spreads....Tighter spreads mean traders and collectors experience optimal prices.

...adoption will undoubtedly still be rocky, there does seem to be rationality around digital assets that is spreading...

Eventually, trading upcoming car makes, models, and new/used spreads will be a thing. 2030 is really...This leads to some egregious rate spreads that are unacceptable for a mature financial system....Rate spreads need to be fixed for DeFi to go mainstream....The negative impact of rate spreads holds everything back.

HL’s orderbooks embed custom logic that biases market makers over toxic takers resulting in tighter spreads...HLP vault; this provides both lucrative yield to passive LPs while concurrently enabling even tighter spreads...