The Future Of Connected Liquidity, Transformed
FLUID is the trading system that consists of an AI-based smart order routing protocol and cross-chain liquidity aggregator enabled by FLUID’s proprietary hedging pool providing high throughput at ultra-low costs, ultra-low latency, and zero counterparty risk. Its architecture provides seamless interoperability between exchanges, resulting in shared global liquidity and providing market stability.
A Polkadot-based blockchain infrastructure to leverage parachain low-latency utilizing new MPC wallet architecture will mean that multi-party transactions will be settled almost instantly at ultra-low costs.
This article will dive into key aspects that the future of connected liquidity, transformed will impact.
Regulation Will Unlock EndlessOpportunities In DeFi
Blockchain is complicated for many who do not have a deep understanding of the topic, but it’s important to understand due to various implications for society. Regulation can correct the current state of blockchain and its crucial social issues such as money laundering or transparency in economic transactions.
A company with a detailed compliance structure can help users navigate regulations such as KYC and AML policies. Furthermore, to ensure all investors are protected, DeFi projects should develop rules and processes to protect everyone involved. This includes background checks, screening, and due diligence.
Although it seems like plenty of work on the surface, it can be incredibly beneficial for aggregators because compliant blockchain regulation protects users. If a hack occurs and users lose their funds, the company will have done all the research necessary to develop a contingency plan.
We’re in the midst of a significant transformation of the cybersecurity landscape
The Covid-19 disruption and subsequent changes made by organizations to navigate this new reality opened the door for unknown IT risks, cyberattacks, and compliance. In addition, compliance challenges are increasing year by year in technology operations today due to its fast rate of evolution.
FLUID follows a zero-trust security architecture meaning all parties are equally scrutinized internally and externally for cybersecurity risk audits.
Eying Virtual Asset Markets for Improved Efficiency
Virtual asset markets are an emerging area of the investment space identified as having significant growth potential. The crypto space does however suffer from liquidity fragmentation, lack of best price discovery and execution, market manipulation, and a developing regulatory framework for institutional participation.
As a result, the crypto assets space has experienced a rapid rise in interest by institutional investors looking to enter.
Many institutional investors may find it challenging to access virtual asset markets due to high operational risks resulting in significant losses if not carefully managed. While many factors contribute to the lack of liquidity in these markets, there is another more important factor that is the issue of all existing virtual asset markets being fragmented because they’re not tied together with any single exchange or trading platform.
FLUID’s blockchain-powered institutional-grade system is designed to allow institutions, porfessionals, and retail partners to buy and sell virtual assets in real-time. With a novel order matching algorithm, the platform offers a variety of benefits for its users, such as increased liquidity, ultra-lowtrading costs, and enhanced transparency.
Integrating glocalization methods to foster a seamless trading experience across multiple exchanges
There’s no uniform trading exchange for blockchain participants, with each exchange implementing unique trading rules and best practices. In addition, it’s time-consuming to switch between exchanges, wallets, and fiat-to-crypto conversion tools. In combination, these factors can prove cumbersome and inefficient for an engaging trading process.
But what if there was a more effective way? What if we could integrate glocalization methods into blockchain trading and have a seamless experience across multiple exchanges? This is where FLUID excels.
Glocalization refers to the adaptation of local laws or regulations for global entities. In the context of blockchain, it can refer to the process of making specific regulatory changes in a jurisdiction without disrupting the wider international adoption of blockchain-based infrastructures. This can mean, for example, adding an exemption clause within a smart contract so that certain transactions are outside the purview of local law enforcement. Or it could mean adopting a distributed ledger protocol such as Proof-of-Work (PoW) or Proof-of-Stake (PoS) with zero restrictions on its use in a particular jurisdiction.
