Liquidity is the total value of offers to buy or sell Bitcoin for close to the market price. Liquidity prevents orders from “slipping” to higher prices as you trade on an exchange. For this reason, high liquidity is critical to any exchange.
All exchanges get their liquidity from market makers, traders that continuously buy and sell assets to retail customers. Exchanges offer discounts to market makers, which gives them an advantage in making profit over retail users.
LVL does not work with third party market makers, nor do we employ payment-for-order-flow. All liquidity on LVL is provided by Market Making, an automated market making strategy available to LVL Premium users. Market Making earns a potential income by selling liquidity to LVL users, 24/7.
We believe that liquidity ultimately belongs to the community, not the exchange. This is an experiment in democratizing market making, ensuring high liquidity, and capturing value for LVL Premium members.