Singapore-based Broctagon Fintech Group has upgraded its NEXUS 2.0 liquidity aggregator technology, with the launch of Native Altcoin Liquidity Management.
The precision-based liquidity management system (LMS) allows exchanges to regulate the demand and supply of their native altcoins via algo-automated execution to achieve healthy liquidity and enhance token tradability.
Unlike bitcoin and major altcoins such as ethereum and litecoin, most exchange tokens still suffer from chronic illiquidity. This lack of liquidity often leads to high slippage and huge spreads, making conditions undesirable for trading, let alone holding it for the long term. Without sufficient participation by traders and investors, the prices of native tokens remain low which negatively impacts the potential growth of the respective crypto exchange.
To tackle this, the Price Mapping function of the LMS helps exchanges implement a successful growth roadmap for their native altcoin, while achieving volume consistency. Utilising pre-configured parameters based on inhouse research insights to formulate an ideal price trajectory, the LMS rebalances bid/ask to achieve tight spreads for traders to enter and exit with ease. Customisable liquidity depth with multiple levels help to further ensure price stability. This upgrade is available immediately and being part of the NEXUS system means it is API ready to connect your altcoin price feed seamlessly to other exchanges for wider exposure and STP execution.
Ted Quek, Chief Technology Officer of Broctagon, says: “Native tokens are essentially the backbone of exchanges and the NEXUS LMS sets the stage for exchanges to evolve to the next phase of maturity. Credible liquidity at both entry and on exit encourages broader market participation which fuels growth for native tokens. The rising value of Native Tokens ultimately validates not only crypto exchanges, but the industry at large, advancing crypto one step further towards mainstream recognition.”
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