Re: [ANN][ICO] LIQNET is a cryptoexchange solves the problem of market fragmentation
And how the investments in this project can be spent?
LEN token holders will get a discount on the exchange's fees of up to 90% depending on the number of tokens spent on it.
One token gives a 0,5% discount on the sum of fees for one day. The discount is activated for 24 hours in the personal account right after the withdrawal of tokens or at the set time. Increment size is 0,5%, the highest possible discount is 90%. The timing of the discount can be chosen in the personal account. For example, 10% discount on the fees for a day costs 20 tokens, 50% discount for a week requires 700 tokens.
LEN token holders get access to the voting service to decide on the following crucial matters:
● Choice of trading pairs that should be present on the exchange initially, the system has only one or two pairs, and the token holders choose the first 20 pairs, which will be added to the system immediately after the ICO;
● Choice of the ways of spending 50% of collected fees.
The detailed information you can find in the WP, starting p. 12.
What can you tell about the fragmentation of liquidity?
By the end of the decade, global cryptocurrency trading is scattered among various platforms, which ledto severe fragmentation of liquidity. The lower the liquidity, the lower the average volume of a trading position in
comparison to stock
It isn't a bad thing per se to have hundreds of exchanges as they also compete with each other for offering the best prices and security.
Today, the number of exchanges has grown so much that the market needs unification to be able to continue to develop as a single organism. Users and their assets are split; therefore, liquidity is split, too. Cryptocurrencies should unite people, companies, and financial streams, but the fragmentation of trading over several platforms leads to increased volatility of many cryptographic currencies and assets.
This scares traditional investors away from investing in cryptocurrencies. Low level of liquidity and considerable spreads don't help the development of the cryptocurrency industry. Naturally, exchanges should seek to get into a unified trading place to be able to use the combined liquidity to increase revenue.
The abundance of exchange and trade tools on the market should also be critically reviewed. At first glance, the market is filled with stock and cryptocurrency exchanges. However, when filtered by such parameters as reliability, accessibility for end users (many exchanges are selective in allowing residents of different countries and jurisdictions to trade), ability to trade with required tools (fiduciary currencies included), the choice is narrowed drastically, and the illusion of abundance goes away.
At the remaining optimal exchanges, liquidity will be limited. Therefore, during a market move or when buying or selling a significant amount of funds, a trader risks to fail to get the required amount or get it at an unacceptable price. We solved this problem by uniting liquidity streams from different platforms into one order book.
The project looks quite promising. A rather interesting vision, wondrous plan, rational results!
We grateful for your support
It is much important for us!Being an exchange on its own makes Liqnet a stand out. I'm sure it has a well cut out plan on how to solve the fragmentation issues associated with cryptocurrency exchanges. Hopefully, the project will be a success.
Liqnet has very detail plans to build up its own exchange.I wish that the exchange will have different trading pairs, including fiats.
I like this idea. he has great prospects. I will use this product.
Nice you are with LIQNET
We appreciate it.Circulation capital is the main thing this project will invest in.
What exactly do you mean?
Ok so how does it work taking a single trade as an example: you unite the liquidity streams by providing aggregated order books of various/all exchanges. If someone actually makes a trade via LIQNET, does the exchange where the order was pulled from also still make money? And do you make money on top of that?
The thing is that LEN is a mechanism that through an API allows to collect and combine data on requests to sell/buy from many cryptocurrency exchanges located anywhere in the world and to form a unified order book. LEN aggregates requests into a single stream, and because of that users can make deals at the most favorable price with a minimal spread. LEN allows the LIQNET system to get an improved model from the standard model of market depth. The new model offers added liquidity at the intersection of supply and demand. As a result, LIQNET users work with a unified order book, which contains both orders of clients of this exchange and orders relayed from other platforms.
Trading has either zero-fee or small fee depending on the trader's trading activity in the last 30 days. Trading fees have a distinction of a "maker" fee or a "taker" fee.
Maker fees are paid when you add liquidity to our order book by placing a limit order under the ticker price for buy and above the ticker price for sell.
Taker fees are paid when you remove liquidity from our order book, by placing any order that is executed against an order of the order book.
A note about hidden orders: If you place a hidden order, you will always pay the taker fee. If you place a limit order that hits a hidden order, you will always pay the maker fee.
Deposits are free except for international wires. Each withdrawals change small transaction or international wire fee (you can set up "Express" option which automatically collects additional fee).
See the complete and current fee information at liqnet.com/fees/