Summary:
- FLUID’s audience includes institutional and professional traders, trading platforms, and retail users
- Institutions will encounter more difficulties locating liquidity and obtaining Best Execution for their crypto trades as the use increases
- For institutional users and professional traders, FLUID offers deep liquidity and ultra-low latency with a manual trading interface and API connectivity
Few financial inventions have captured attention like crypto. When Bitcoin first emerged in 2009 from the turbulence of the global financial crisis, it appeared pretty ordinary: a peer-to-peer electronic payment system introduced through an academic white paper by an unidentified author -Satoshi Nakamoto. It had no cost.
Barely ten years later, there are over 19,000 cryptocurrencies and growing interest and participation from institutions globally. El Salvador and numerous other countries declared Bitcoin legal tender; several businesses changed part of their cash into cryptocurrency, and over 300 million people are said to hold some globally, with wild tales circulating of riches earned and lost.
Cryptocurrency usage by institutions is expanding quickly. Institutions will encounter more difficulties locating liquidity and obtaining Best Execution for their crypto trades as this use increases. With more than 500 distinct exchanges, tremendous volatility, and wide bid-ask gaps, the cryptocurrency market is incredibly fragmented. Best Execution, which is nearly assured for huge institutions in TradFi, is not yet covered by regulations in digital asset markets.
Who Uses FLUID?
FLUID’s audience includes institutional and professional traders, trading platforms, and retail users. The desire for two things—liquidity and users—unites them all. Users cannot trade without liquidity, and traders cannot supply liquidity without additional users.
How will FLUID Benefit Institutional and Professional Traders?
For institutional users and professional traders, FLUID offers deep liquidity and ultra-low latency with a manual trading interface and API connectivity. FLUID will also offer execution algorithms, low commissions, and a customized professional trading interface available via FLUID Terminal.
Some of the benefits include:
1. FLUID API FOR ACCESSING DEEP LIQUIDITY FOR INSTITUTIONS AND EXCHANGES
There are two main solutions available through FLUID’s API:
- FLUID Trading API: Easily access FLUID’s real-time data for analysis or building proprietary strategies and trading with FLUID’s predictive modeling algorithms
- FLUID Liquidity Integration API: Access to liquidity for exchanges that lack liquidity and want to provide their users with a better trading experience
2. FLUID TRADING UI FOR PROFESSIONAL TRADERS: FLUID’s Trading UI will be available for professional traders through FLUID T (Terminal), a professional trading terminal also available on the web for sophisticated manual trading requirements.
3- FLUID EXECUTION ALGORITHMS FOR INSTITUTIONS: FLUID will leverage its core AI prediction platform to provide the following execution algorithms that will work with its Smart Order Router (SOR) to provide the Best Execution and benchmark pricing to institutions. Key algorithms included:
- VWAP: A trading benchmark that represents the average price of a security traded during a certain period (or throughout the day) based on volume and price
- TWAP: A strategy that breaks up a large order into smaller child orders and is released dynamically to the market using evenly divided time slots during a certain period
- Volume Participation: A trading strategy that calculates the order quantity as a percentage of the total trade volume of an asset during a certain period and places an appropriate order
- Arrival Price: Minimizing pre-trade arrival price Transaction Cost Analysis (TCA) and slippage. Post-trade TCA reports will also be provided
4. AI-DRIVEN PRICING MODEL: By utilizing machine learning and deep learning methodologies, FLUID can grasp the macroeconomic and microeconomic aspects required to estimate the price of an aggregated order book accurately.
FLUID’s AI uses a hybrid prediction model for cryptocurrencies that combines machine learning and deep learning to forecast real-time order book values accurately. Preprocessing and feature selection impact the model’s performance while collecting real-time data since bitcoin values are dynamic and highly volatile with massive amounts of data.
5. FUTURES AND OPTIONS TRADING: FLUID’s proprietary AI-based platform provides futures and options trading on all major cryptocurrency pairs to institutional customers. For large crypto derivatives (block trades), customers can utilize FLUID’s proprietary RFQ-based technology to source deep liquidity. Features include:
- Dynamic delta and volatility trading strategies
- Spread trading and peg-to-parity algorithm
- Ability to trade large blocks anonymously using RFQ technology
6. CROSSING ENGINE FOR PROFESSIONAL AND INSTITUTIONAL TRADERS: FLUID’s Crossing Engine is a deep liquidity pool that provides fiat-to-crypto liquidity to its network of institutions and professional traders. FLUID’s goal is to become the liquidity hub across all digital assets. Features include:
- Crossing at the best available price across exchanges
- Ability to execute large block trades without impacting the price at the exchanges
- Anonymity and minimizing market impact
FLUID’s Competitive Edge
FLUID is building the crypto platform of the future. FLUID wants to stay ahead of the curve by bringing deep expertise and best practices from traditional finance and electronic trading to digital assets.
FLUID is on a mission to build a smart order router that uses a low-latency colocated infrastructure to aggregate deep liquidity across CEXs and DEXs. FLUID ensures Best Execution to clients by using AI-based predictive modeling for order book prices.
This is in addition to pre-trade and post-trade analytics, building execution algorithms for large institutions that want to trade in size, and a Crossing Engine for cross-institutional trades.
FLUID is the low-latency digital asset liquidity aggregator delivering Best Execution for institutions, trading platforms, and retail investors using predictive AI-based models to address fragmented liquidity. FLUID makes trading and accessing liquidity easier, more efficient, and faster with accurate pricing.
