Empirica at International DeFi Day 2023
The world of decentralized finance (DeFi) is evolving at an astonishing pace, and our company is at the forefront of this revolution. On the occasion of International DeFi Day 2023, which brought together DeFi enthusiasts and industry experts, Empirica’s co-founder Piotr Stawinski delivered an enlightening presentation titled “Building Token Liquidity on Decentralized Exchanges“.
The core of Piotr’s presentation revolved around the analysis of key liquidity metrics on Uniswap V3, one of the most prominent decentralized exchanges in the DeFi ecosystem. Piotr analyzed the nuances of token liquidity.
One of the key takeaways from Piotr’s presentation was his explanation of the concept of Market Depth and its significance within the DeFi landscape. By comparing it to TVL (Total Value Locked), he shed light on the dynamics that drive liquidity provision on decentralized exchanges. This comparison provided attendees with a new view of the different facets of liquidity management in DeFi.
However, what truly captured the audience’s attention was the explanation of Slippage and its implications. Slippage, the change in the price of an asset between the time a trade is initiated and when it is executed, is a crucial factor for liquidity providers. Piotr delved into the intricacies of slippage and market depth and offered valuable insights into how capital can be used effectively to provide liquidity on DEX platforms.
Furthermore, Piotr underscored the critical importance of trading and inventory management across decentralized (DEXes) and centralized exchanges (CEXes) using price-stabilizing algorithms. This holistic perspective emphasized the interconnectedness of the crypto ecosystem, where liquidity providers need to navigate seamlessly between different trading venues to optimize their returns while managing risk.
Piotr also showed the ranking of the TOP 500 most liquid tokens on Uniswap V3 – the Report prepared by Empirica Liquidity Lab and published here.
As the DeFi space continues to evolve, it is clear that we will continue to share knowledge driving innovation and excellence in the world of decentralized finance. You can see the presentation here.
If you are considering the help of a market maker in the cryptocurrency space
We excel where others stumble. We are a crypto market maker and liquidity provider for token projects and exchanges connected to major centralized (CEX) and decentralized (DEX) digital asset exchanges. What are the effects of our market making service? We notice that by adequately setting our liquidity algorithms, we very often lead to an increase in volumes by 30-50% in the short term and up to several hundred percent in the long term.
We increase the volumes of our partners by significantly increasing the depth of order books and pools, building investor confidence in the token, and always being there when investors need us as the other party to the transaction, regardless of the market situation. We know it works because we’ve done it more than it many times.
You can discover how we can conduct an effective crypto market making projects here: