Below I explain how free trading venues are profitable and why they can offer tighter spreads, by highlighting...They monetize the bid-ask spread....It’s a win-win: retail users trade free, the maker earns the spread, the platform earns the maker’s fee...RPI/segmentation is what keeps spreads tight, sometimes on par with Binance, so you get “Binance spreads...

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.

Over the last month, the bid-ask spread on BTC perps, particularly Deribit, has improved dramatically...The spread on Deribit went from 60 basis points to under 30 basis points....The spread reducing from 0.6% to 0.3% would save a trader close to $15,000 ([0.6%-0.3%]*$5 mn).

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...

Take a look at the bid-ask spread for a $5M BTC futures buy....The spread was never above half a percent, until suddenly it jumps up to 4% on Deribit and around 1.5...With few traders looking to sell, the ask side of the orderbook dried up, causing 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.

BTC Spread Widens As is usually the case with sudden collapses in market structure, liquidity on the...When one side of the orderbook gets exhausted and has few orders, the bid-ask spread widens.

...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.

Trading Activity Takes a Dip Throughout November, we’ve seen Binance’s total spot volume stagnate while spreads...The reason for the daily high on this spread spiking on certain days is almost certainly a consequence...as lively, large orders cannot be filled as easily and incur more slippage, which causes the bid-ask spread...

...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.

...implied volatility, as options sellers want to price volatility in a way that allows them to earn a spread...This spread is often referred to as the variance premium — a price option buyers pay sellers for bearing...

They make their money off the bid-ask spread on each trade....“Binance spreads, but with zero fees.”...Why not keep tight spreads and just charge normal (even high) fees?”...“Binance spreads, zero fees” is simple, verifiable, and shareable....Execution cost is not just spreads. Execution cost = spread + fees + slippage.

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.

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.

...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...

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...

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...