All termsMarkets and TradingCross reference
Liquidity Provider
A liquidity provider supplies assets or capital to a market so that other participants can trade more easily. Depending on the market structure, liquidity may be provided through an order book, market making arrangement or liquidity pool.
Why it matters to you
Markets need available liquidity for buyers and sellers to transact efficiently. For tokenized assets, the existence and quality of liquidity providers can have a major effect on spreads, trading costs and how easily investors can enter or exit positions.
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