The web3 revolution has brought about the concept of tokenization, which allows for a project to create digital assets through transferable tokens. While it is easy to issue a new token (and the numbers are growing at an unprecedented rate), it is incredibly difficult to grow a community and reach sufficient liquidity.
Exchanges, whether centralized (CEX) or decentralized (DEX), are where the trading takes place, but market makers play an essential role in making these markets liquid, especially for smaller projects. The role of a market maker is to be a counterparty to buy from and sell to, ensuring that whenever someone wants to buy or sell, they can do so at a relatively fair price even if they want to trade large amounts. A market maker is successful when it is possible to immediately trade a given quantity of token without significantly affecting the price on the exchange they operate on (i.e. with reduced bid-ask spread and slippage).
A key issue is that with the multitude of blockchains and their diverse trading flows, along with the increase in CEXs and DEXs (more than 200, compared to the controlled environment of traditional finance with NYSE, CAC 40 FTSE, etc.), it is challenging to find a market maker that can trade on each of them. The emergence of Automated Market Makers (AMM) during the DeFi summer has made it possible to bring liquidity on-chain. Crypto projects need a market maker that can include DEXs in their market-making strategies as they are essential for the community and beneficial to the decentralization of finance.
This is where Flowdesk’s integration into 100+ exchanges comes in. Our service is designed to meet the demands of crypto projects that need to be listed on CEXs and the exchanges' requirement for professional market makers to guarantee good liquidity at all times. We are able to integrate new ones on demand in a matter of days.
We can also trade on any layer-1 or layer-2 DEXs which are currently used to hedge positions and harmonize prices with CEXs. We are currently trading on more than eight blockchains and their associated Automated Market Makers (AMM). We understand that each project has unique needs, therefore additional exchange integrations are possible on request.