Author: Orderly Network
As one of the largest perpetual contract liquidity providers in DeFi, Orderly provides the best liquidity in the form of order books, thanks to the strong pillars behind us - top liquidity providers, Wintermute being one of them.
Wintermute is an industry-leading global liquidity provider and a leading global algorithmic trading firm in the digital asset space, providing liquidity across all major trading platforms and OTC channels, and is extremely competitive in the market.
Simply put, with the same purpose as Orderly, Wintermute provides the required liquidity services for any cryptocurrency trading platform in CeFi and DeFi, using the most advanced algorithmic trading system on a large scale.
Wintermute has accumulated a trading volume of over $4.8 trillion, providing liquidity to over 60 exchanges and trading platforms, and creating liquid and efficient markets for over 320 assets including Binance, Bybit, Coinbase, Uniswap, Orderly Network, etc.
Orderly is a leader in top-level liquidity for perpetual contract order books in DeFi, and Wintermute plays a crucial role.
Many traders focus on fees but overlook liquidity and best quotes, which can significantly impact their trading costs. Insufficient trading volume and liquidity in an asset results in traders needing to execute orders at a worse price, often with wider spreads on larger trades.
As a professional liquidity provider, Wintermute provides strong liquidity support to Orderly's infrastructure, allowing Orderly's traders to execute trades with minimal slippage and smaller spreads.
Orderly Network: There is over 1.584 BTC in funding at price levels above $61,500. This high liquidity means that trades can be executed with little to no slippage.
Other DEXs: At the same price level, there is only 0.49 Bitcoin in funds. Low liquidity may increase slippage, so you can only accept worse transaction prices.
Wintermute's efficient liquidity market covers more than 50 assets, helping related partners attract a large number of traders and helping Orderly's total trading volume climb to more than US$60 billion.
In addition, the quote data provided by Orderly Network in its order book is accurate to decimal points, and the quotes are more accurate than other DEXs. Compared with other mainstream DEXs, traders who cross the middle price only need to pay 0.1 BTC instead of 1 BTC.
Wintermute also shared insights on trading liquidity: Top of order book liquidity is so important, why do traders often ignore it?
The head of Wintermute said, “In any market, the top level of order book liquidity is crucial because it largely determines whether trades are executed efficiently without significant slippage. Order book depth liquidity ensures fast matching Large orders and execution at stable prices are critical to both spreads and trading experience.
However, many traders tend to overlook this aspect as they focus more on overall trading volume or recent transaction prices. They may not realize that insufficient liquidity can lead to higher trading costs. When traders execute large orders in shallow pools, they may experience greater slippage, which can negatively affect their trading results. This is particularly troublesome in the perpetual contract market, as leverage can magnify the impact of slippage.
Wintermute said, “The main role of liquidity providers is to provide initial liquidity to support the development of transactions and market activities. This liquidity ensures sufficient trading volume and assets are traded smoothly, thereby attracting traders and investors so that they can execute transactions at the best price. It is worth noting that liquidity providers promote price discovery rather than increase price volatility. By providing liquidity, they help new projects gain a foothold in the market and win the trust of the trading community, which in turn drives more organic liquidity.
“Wintermute’s long-term goal is to work closely with projects on over 60 CeFi and DeFi platforms, integrate with top aggregators, etc.”
What conditions does a crypto project need to meet in order to get the support of a reputable liquidity provider? Regarding the criteria for Wintermute to screen projects, its head said, "To get the support of a liquidity provider like Wintermute, a project must demonstrate solid fundamentals, including a clear vision and an experienced team. We look for projects with innovative technology, application capabilities and market potential. Transparency is also very important, and we value open communication and long-term cooperation and alignment of interests."
