Multiple exchange integration

Features > Integration > Multiple exchange integration

Overview

Flowdesk is a market maker for 120+ global and emerging exchanges, including centralized spot and derivatives exchanges (CEXs) and decentralized exchanges (DEXs). This level of exchange integration helps facilitate the overall liquidity and trading activity of tokens.

To connect to an exchange, Flowdesk uses API keys to authenticate the connection and retrieve relevant data such as order book, ticker, and trade history. This data is used to analyze market conditions and identify opportunities for providing liquidity.

Once a connection is established, Flowdesk deploys proprietary algorithms to continuously monitor the market and execute trades on the connected exchanges. These algorithms are designed to provide liquidity by placing both buy and sell orders at various price points.

By connecting to multiple exchanges, Flowdesk is able to provide liquidity across a wider range of trading pairs and capture a larger share of the overall trading volume.

To facilitate fair exchange integration, Flowdesk utilise cross exchange market making and exchange and asset agnostic market making:

Cross exchange market making + Exchange and asset agnostic market making

Cross exchange market making refers to the practice of providing liquidity across multiple exchanges simultaneously. This allows Flowdesk to access a wider range of customers and potentially increase profits. It also allows token issuers to access a more diverse set of exchanges and potentially achieve better prices. There are several challenges to cross exchange market making, including the need to maintain separate accounts and order books on each exchange. However, there are also several potential benefits, including the ability to harmonize prices across exchanges and the potential for increased liquidity and trading volume.

Exchange and asset agnostic market making refers to Flowdesk’s practice of providing liquidity across a variety of exchanges and assets, rather than focusing on a specific exchange or asset. This allows clients to diversify their risk and potentially increase profits. It also allows traders to access a wider range of assets and potentially achieve better prices.

Benefits

One of the main benefits of listing on a centralized exchange (CEX) is that they typically have higher liquidity, which can make it easier for investors to enter and exit positions. They also tend to have more established processes and regulations, which can increase trust and credibility for your project.

Decentralized exchanges (DEXs), on the other hand, offer more anonymity. DEXs also give you more control over your assets, as you do not need to trust a third party to hold them. Flowdesk works with DEXs and liquidity pools where a certain amount of each asset is available for trading at a fixed rate. If a trade is executed that depletes the pool, the rate may change based on the new balance of assets. It is important to note that there are fees associated with trading in liquidity pools, including fees for liquidity providers and the protocol (such as Uniswap or PancakeSwap), as well as slippage due to the size of the trade. In order to have a well-functioning pool, with low slippage, a token issuer would need to have sufficient value inside (with a large pool of locked capital).

Connecting to multiple centralized and decentralized crypto exchanges has a number of benefits for token issuers. These benefits include:

• Improved liquidity: By connecting to multiple exchanges, Flowdesk can provide liquidity across a wider range of trading pairs and capture a larger share of the overall trading volume. This can help to improve the liquidity and trading activity of the token.

• Greater reach: Centralized exchanges typically have a larger user base and higher trading volume compared to decentralized exchanges. By connecting to both types of exchanges, Flowdesk can reach a wider audience of potential buyers and sellers, increasing the potential for trading activity.

• Flexibility: Decentralized exchanges operate on a peer-to-peer basis and do not require the same level of regulatory compliance as centralized exchanges. This can make them more flexible and easier to list on, especially for tokens that may not meet the listing requirements of centralized exchanges.

• Diversification: Connecting to multiple exchanges helps to diversify the liquidity and trading activity of the token across different platforms. This can help to mitigate the risk of relying on a single exchange and ensure that the token is less vulnerable to platform-specific issues such as downtime or security breaches.

• Better pricing: By connecting to multiple exchanges, Flowdesk can utilize arbitrage opportunities to help ensure that the token is being traded at a fair market price. This can help to attract more buyers and sellers, leading to increased trading activity.

• Increased exposure: Listing a token on multiple exchanges can increase its visibility and exposure to potential buyers and sellers. This can help to raise awareness of the token and potentially drive up demand.

• Improved order execution: Connecting to multiple exchanges can help to improve the execution of orders, especially in cases where one exchange may be experiencing high volume or latency issues. By spreading orders across multiple exchanges, Flowdesk can ensure that trades are executed in a timely and efficient manner.

Table of key benefits

Benefit	Description
Improved liquidity	Connecting to multiple exchanges allows for more hedging opportunities hence the possibility to increase liquidity on each of those exchanges.
Greater reach	Centralized exchanges typically have a larger user base and higher trading volume compared to decentralized exchanges. By connecting to both types of exchanges, the token can reach a wider audience of potential buyers and sellers.
Flexibility	Listing requirements on different exchanges differ, with some offering increased flexibility in terms of timeline, cost, and liquidity requirements.
Diversification	Connecting to multiple exchanges helps to diversify the liquidity and trading activity of the token across different platforms, mitigating the risk of relying on a single exchange.
Better pricing	By connecting to multiple exchanges, Flowdesk can take advantage of arbitrage opportunities and help to ensure the uniformity of token price across venues..
Increased exposure	Listing a token on multiple exchanges can increase its visibility and exposure to potential buyers and sellers, potentially driving up demand.
Improved order execution	Connecting to multiple exchanges can help to improve the execution of orders by using a best route approach, ensuring best execution in a seamless manner.