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Liquidity Management

CEX Integration

Liquidity Sourcing

  • Direct integration with major Centralized Exchanges
  • Real-time price feeds and market depth
  • Automated order execution and settlement
  • Multi-exchange redundancy

Market Making Strategy

  • Continuous market monitoring
  • Dynamic spread adjustment
  • Risk-based position sizing

Hedging Mechanism

Position Management

  1. Opening Hedges
    • Triggered by USER_HTLC_CHAIN_IN creation
    • Size matched to swap amount
    • Executed across multiple venues
  2. Risk Mitigation
    • Delta-neutral operations
    • Real-time position monitoring
    • Automated rebalancing

Market Risk Control

  • Price slippage prevention
  • Volatility exposure management
  • Liquidity depth monitoring
  • Counter-party risk assessment

Price Management

Rate Determination

  1. Base Rate
    • CEX market price aggregation
    • Volume-weighted averaging
    • Spread calculation
  2. Fee Components
    • Network fees
    • Protocol commission
    • Risk premium
    • Operational costs

Dynamic Pricing

  • Real-time rate updates
  • Market depth consideration
  • Volatility adjustments
  • Network congestion factors