Liquidity lowers the cost for people to access your token and unlocks institutional participation. Done right, tighter spreads → higher volumes → more venues want you. Done wrong, you inflate circulating supply and add downside convexity.
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LOWER TRADING COSTS
Tighter spreads and smaller price impact reduce execution costs.
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GREATER PARTICIPATION
Depth and lower slippage attract larger trade sizes and institutional interest.
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STRONGER FLYWHEEL
Better execution → higher volumes → more venue interest → more avenues for demand.