We are happy to present to you our new Swarm website at swarm.autonio.io
NIOX Swarm - Crowdsource Liquidity
Liquidity has long been a central concern, not only for cryptocurrency and blockchain projects, but for financial markets in general. It is a prerequisite for the growth of a project, financially and otherwise. Efforts have been made to solve the liquidity problem by providing it from some concentrated or centralized venue. But this conflicts with the decentralized ethos of the DeFi economy itself.
When liquidity is truly crowdsourced from a diverse audience whose behavior and interests are uncorrelated, liquidity is fundamentally more robust. It is less likely to evaporate in a crisis and more indicative of a healthy market.
Token issuers spend an estimated 1.2 billion dollars every year compensating market makers, like quantitative hedge funds that specialize in crypto assets, in the form of rebates, fees, and opportunity cost of inventory.
Birth of Liquidity Mining
Liquidity is one of the most important requirements for all financial assets and trading venues. However, many market participants are unclear as to what drives liquidity and how to measure its effects. This is because market making, the business of providing liquidity, has traditionally been accessible to only a limited number of participants, such as quantitative hedge funds and trading desks of large financial institutions. Crypto exchanges and token issuers spend an estimated $1.2 billion per year compensating market makers, typically quantitative hedge funds that specialize in crypto assets, in the form of rebates, fees, and opportunity cost of inventory.
A marketplace driven approach can promote consistent liquidity provision, mitigate the risk of manipulative practices, and improve matching efficiency in the market for liquidity.
Financial markets can only be as decentralized as the source of their liquidity.
NIOX Swarm — Autonio’s Liquidity Mining Protocol
A marketplace driven approach to market making can promote consistent crowdsourced liquidity provisions, mitigate the risk of manipulative practices, and improve matching efficiency in the market for liquidity.
Intelligent market making solutions enable a fairer economy, true to the nature of decentralization, and a sustainable solution to crowdsourced liquidity. The use of AI agents to create an intelligent network for market making can be the next breakthrough empowering a new class of crowdsourced liquidity that’s sensitive to price variations.
Autonio’s liquidity mining protocol and infrastructure for crowdsourced liquidity incorporates a marketplace-based approach to market maker compensation that leverages competitive dynamics to align rewards earned by market makers with risks that they bear in different market regimes.
Leading to a reduction in coordination costs and improved matching efficiency between liquidity buyers and sellers by connecting liquidity buyers (sponsors) & sellers (market makers)
We’re thankful for all the support and are excited about pushing the boundaries of DeFi with our automated trading tools and infrastructure.
Have fun trading with Autonio!