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Where does liquidity come from on Lyra V2?
Where does liquidity come from on Lyra V2?
Updated over a week ago

Lyra V2 Liquidity Sources

  1. Market Makers:

    • Market makers are key to providing liquidity on Lyra V2. They place buy and sell orders in the orderbook, ensuring that there are always options available for trading.

    • They might be incentivized through fee discounts or rewards, encouraging continuous order placement and tight spreads.

  2. Takers:

    • Takers are active participants who respond to the orders placed by market makers, contributing to the platform's liquidity.

    • Their actions, which include executing trades against the orders in the orderbook, help maintain a dynamic and liquid market environment.

  3. Orderbook Depth:

    • The depth of Lyra V2's orderbook is a direct contributor to its liquidity. A deeper orderbook means more orders at varied price levels, leading to better liquidity and price stability.

  4. Incentive Programs:

    • Lyra V2 may implement incentive programs aimed at boosting market-making and taking activities.

    • These can include rewards for maintaining an active trading presence or engaging in a high volume of transactions.

These elements collectively ensure a liquid and efficient trading environment on Lyra V2's orderbook-based system.

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