GLOSSARY/Economics

Liquidity Protection

Safeguards designed to prevent sudden, catastrophic drains of assets from decentralized exchange pools.

Liquidity protection involves implementing "circuit breakers" that pause trading during extreme volatility and "exit fees" that penalize those who attempt to drain pools during a panic. It is essential for maintaining market stability in DeFi.

RELATED INDUSTRIES

TradingMarket Making

OPERATIONAL LOCATIONS

Global