Quote from: mirek92 on December 07, 2023, 01:54:21 PM

Hello, I would like to ask, how the add crypto token to Centralized exchange (CEX) works?
I know you need to apply at first and if they think your project have good qualities, the will add your crypto to applied centralized exchange but I am interested how does it works mathematically.

You will need to provide the token of yours and equivalent token that you will pair on it such as stablecoins (USDT,Bitcoin and other asset). It’s not the same with DEX that you need a 1:1 value both pair since you will only need to provide initial liquidity and the rest of the order will be setup by the market maker bot of CEX.

The CEX itself will spread your liquidity that you will provide for the pair and you will be the one that will decide on what’s the minimum price you will start to distribute your liquidity for your pair. Exchange is using market maker to create fake trades. I’m not sure if anyone can provide you an exact mathematical explanation on how market maker works on CEX unlike DEX which everything is transparent on the blockchain.