Singapore-based Broctagon has upgraded its Nexus 2.0 liquidity aggregator technology to include native altcoin liquidity management – a solution it says allows exchanges to regulate the demand and supply of their native altcoins via algo-automated execution to “achieve healthy liquidity and enhance token tradability”.
The firm observes that 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,” Broctagon asserts.
To tackle this issue, it adds that the price mapping function of the new liquidity management system helps exchanges implement a growth roadmap for their native altcoin, while achieving volume consistency. Utilising pre-configured parameters based on in-house research insights to formulate an ideal price trajectory, the system rebalances bid/ask to achieve tight spreads for traders to enter and exit with ease, Broctagon claims, adding customisable liquidity depth with multiple levels helps to further ensure price stability. The upgrade is available immediately and is API ready to connect an altcoin price feed to other exchanges for wider exposure and STP execution.
“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,” says Ted Quek, chief technology officer of Broctagon. “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.”