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Jul 08, 2024
Ecosystem Spotlight
Ecosystem Spotlight: Wintermute, Powering Orderly Network's Stellar Liquidity
by Orderly Network
Ecosystem Spotlight: Wintermute, Powering Orderly Network's Stellar Liquidity

As one of the largest perps liquidity sources in DeFi, boasting the best top of orderbook liquidity, it's only right that we turn the spotlight to the pillars behind this feat—our liquidity providers.

One such pillar is the industry-leading global liquidity provider – Wintermute, and we are certainly excited to work with them.

Wintermute is a leading global algorithmic trading firm in digital assets that provides the most competitive liquidity in the crypto market across all major trading venues and OTC distribution channels.

In simpler terms, this means anywhere crypto trading occurs, across CeFi or DeFi, they are consistently providing the necessary liquidity - much like Orderly, but on a far larger scale, powered by the most advanced algorithmic trading systems.

Boasting over $4.8 trillion in cumulative trading volume, Wintermute powers liquidity to over 60 exchanges and trading platforms creating liquid and efficient markets for over 320+ assets across both CeFi and DeFi including Binance, Bybit, Coinbase, Uniswap, Orderly Network, etc.

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Orderly has the best top of orderbook liquidity for perps in DeFi compared to other DEXs – a feat Wintermute plays a vital role in helping us achieve. What does this mean?

Slippage is one aspect traders often overlook in favor of focusing on trading fees. Caused by insufficient volume and liquidity for an asset, slippage occurs when traders are forced to execute their orders at the next available price, often leaving them to deal with wider spreads on larger transactions.

By providing robust liquidity to Orderly’s infrastructure as pro liquidity providers, traders on Orderly execute trades with minimal slippage and tighter spreads. Don’t simply take our word for it. See for yourself;

Let’s look at the orderbooks from Orderly Network and other leading DEXs:

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  • Orderly Network: At the price level of 61,500 and above, there is over 1.584 BTC available. This high liquidity means trades can be executed with minimal slippage.
  • Other leading DEX: At the same price level, only 0.49 BTC is available. Lower liquidity increases the likelihood of slippage, resulting in a worse execution price.

That’s precisely what Wintermute provides – an efficient and liquid market for the 50+ assets listed on your favorite brokers powered by Orderly. This attracts more traders, boosting total trading volumes on Orderly to over $60 billion.

Besides having the best top of orderbook liquidity, Orderly also offers superior precision in price points, characterized by the extra decimal places when compared to other DEXs. The extra decimal point means we have tighter quotes compared to the other DEX, providing higher precision. Traders crossing the mid pay only 0.1 on BTC versus 1 on the other leading DEX. IMG_9739.JPG

Speaking to Wintermute, we asked for some insights; What’s the importance of top of orderbook liquidity and why is it often overlooked by traders?

“Top of orderbook liquidity is crucial in any market because it directly impacts the ability to execute trades efficiently without significant price slippage. Having deep liquidity at the top of the orderbook ensures that large orders can be matched quickly and at stable prices. This is essential for maintaining tight spreads and providing a reliable trading experience.

However, many traders tend to overlook this aspect because they focus more on overall trading volume or the last traded price. They might not realize that insufficient top orderbook liquidity can lead to higher execution costs. When traders place large orders in a shallow order book, they can experience significant price slippage, which negatively impacts their trading outcomes. This is particularly problematic in perpetual markets where leverage can amplify the effects of slippage.”

Wintermute lives and breathes DeFi, notably emphasized by its investment in over 100+ projects, demonstrating a commitment to driving growth, innovation, and transparency in the crypto market.

Still speaking to Wintermute we asked “What’s the primary role of LPs in bootstrapping liquidity for new projects and how does Wintermute stand out ?”

“The primary role of liquidity providers is to supply the initial liquidity needed to enable trading and market activity from the outset. This liquidity is crucial for attracting traders and investors by ensuring there is enough volume for assets to be traded smoothly, allowing them to execute trades of the desired size at the best possible price. Contrary to popular belief, liquidity providers facilitate price discovery rather than moving the price. By providing liquidity, they help new projects establish a market presence and gain the trust of the trading community, which in turn drives more organic liquidity.

Wintermute is long-term-oriented and, beyond trading tokens, we offer comprehensive guidance on all aspects of liquidity, as well as other key areas like networking through our events and introductions to venture investments. Our strong in-house DeFi team collaborates closely with projects, providing support on every level, including exchange listings and protocol design. We have a broad reach in liquidity venues. This is evidenced by our operations across 60+ platforms in both CeFi and DeFi, our integration with top aggregators and institutional brokers, and our status as one of the largest on-chain trading firms. By working with Wintermute, you also gain access to our OTC desk, providing exposure to a broader institutional investor base, and increasing token visibility and market penetration.”

We further asked Wintermute; What does it take for a crypto project to get the backing of a reputable LP like yours? What criteria does Wintermute look for in a project?

“To get the backing of a liquidity provider like Wintermute, a project must demonstrate strong fundamentals, including a solid team with a clear vision and proven track record. We look for projects with innovative technology, a viable use case, and significant market potential. Transparency is key; we value open communication and alignment of interests for long-term collaboration.”

By being the backbone of our liquidity infrastructure, Wintermute helps bring our omnichain shared liquidity model to life, allowing us the flexibility to flex our muscles and continue leading as one of the largest liquidity sources in DeFi.

On every chain we go, for any asset, Wintermute’s dedication to continuous innovation delivers market-leading liquidity powered by advanced algorithms. This partnership enables Orderly to maintain its edge in the competitive world of crypto trading, ensuring our traders always have the best possible trading experience.

Trade on an Orderly-powered DEX today: Trade on Orderly

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