One important concept in the world of cryptocurrency and blockchain network is liquidity. Liquidity can simply be described as the concept or factor that determines how stable the price of a particular cryptocurrency or token is in the crypto market especially from the impact of large order trades and transactions so basically a liquid market is not easily susceptible to price swings and volatility as well as being able to facilitate large order transactions therefore the importance and advantages of liquidity in a cryptocurrency market is invaluable and can serve as a hedge or solution to the problem of market volatility and market manipulation and distortion.

So basically the cryptocurrency world like I mentioned earlier is volatile and posses other significant risks and challenges so basically the most effective solution to the challenge or problem of volatility, market distortion and price swings is increasing volatility and basically as the world of cryptocurrency and the crypto market continues to grow and involve more advanced provisions have been made to manage these risks that I mentioned earlier which is just some of the many in the cryptocurrency space, these provisions involve adopting the use of multiple liquidity sources so as to increase the liquidity of the market.

Increasing the liquidity of a market like I said is very important especially when making large volumes and order transactions based on puss coin which is a rising cryptocurrency so their liquidity might not be at its optimum value but with the innovation of adopting multiple liquidity sources for their transactions so by adopting this strategy in the early stages of their growth and journey puss coin will basically be able to facilitate large order transactions and still reduce the risks that comes with them like price swings and market distortion etc.

OFFERS BETTER PRICING

One of the immediate and direct benefit and advantage of adopting multiple liquidity sources for a single cryptocurrency or puss coin based transaction is that it gives traders opportunities and access to better pricing mind you in the world of cryptocurrency trading pricing can simply be defined as the current value or price of a token which a trader can buy and sell at that given time. In the cryptocurrency market space each of the different exchanges offer different bid to ask price although the difference is not that much or you can say its very slight but still there is a difference.

Therefore by combining the liquidity of these multiple or different exchanges cryptocurrency or puss traders can carry out and execute transactions at competing rates across the market and across multiple exchanges, so because the trader did not depend on just one exchange he was able to get access to the pricing of all the exchanges so this strategy reduces the risk of something like slippage occurring and it is most effective in larger order transactions and more efficient and in time this efficiency that this strategy of multiple liquidity sources offer will lead to increased returns and better risk management.

REDUCED MARKET DISRUPTION AND SLIPPAGE.

Another advantage of implementing multiple liquidity sources is that serves as a hedge against market disruption and slippage. Market disruption can be said to be surges or swings of prices that affects the market as a result of large order transactions and as a result of adequate liquidity it leads to rapid changes in the market and on the other hand slippage simply refers to the difference between the showcased or expected price and the executed or traded price this difference basically occurs as a result of price swings in the market these differences are also not all that significant but for large order transactions the changes adds up increasing profits or reducing it, it depends.

So basically all this artificial market manipulation and price swings can also be explained by the concept of market impact, and it has devastating effects mainly of misleading traders who may interpret these price movements as the opportunity to take or exit a position in their trade however we are grateful to puss that by implementing and adopting the use of multiple liquidity sources it can battle this issue, the strategy works because by distributing orders and transactions across multiple exchanges the market impact that would have been suffered by one single exchange or market is now shared across many others thereby reducing the riks and its effects.

CONCLUSION

In conclusion, I share the opinion that this multiple liquidity source strategy is effective and really important especially for large order trades and transactions and that way puss can change its narrative of not an adequately liquid cryptography project.