Cross-chain liquidity enables the exchange of cryptocurrencies and digital assets across multiple blockchain networks. It is the solution to the traditional “fragmented liquidity” that keeps digital assets locked to separate blockchains. By enhancing connectivity to enable asset exchange between networks, it establishes a more efficient decentralized finance ecosystem. That benefits both businesses and their clients.
Businesses with crypto exchanges can leverage cross-chain liquidity to build a more profitable model. ChangeNOW is a platform offering a suite of advanced financial solutions that enable small, medium, and large enterprises to conduct secure, stable cryptocurrency exchanges, payments, and asset management. It is transformative to any crypto exchanges operating within the iGaming, FinTech, investment, or lending sectors.
Below are the six ways cross-chain liquidity is transforming crypto exchanges for businesses.
1) Access Wider Markets
Businesses no longer need to rely on one blockchain ecosystem. Cross-chain liquidity enables small, medium, and large-sized enterprises to create cryptocurrency exchanges that can access a wider range of crypto markets. Some of these markets include ecosystems like Ethereum, Avalanche, and Solana.
Use ChangeNOW’s Crypto Exchange API to build a cryptocurrency exchange service from scratch or integrate it into your current platform. You will have access to more than 1,500 exchangeable coins on over 110 supported blockchain networks and 70+ fiat options. Offering such a diverse range of digital assets will make it easier for businesses to attract new users and investors from both popular and less-popular blockchains.
All assets are inter-exchangeable and sourced from centralized and decentralized exchanges for unparalleled liquidity.
2) Get the Best Possible Market Rates
Fragmented liquidity across various blockchains causes “slippage,” in which the expected trade price differs from the executed trade price. Slippage usually occurs when larger-volume trades are executed on exchanges.
Cross-chain liquidity fixes this problem. It empowers cryptocurrency exchanges to obtain the best possible market rates, with both standard and fixed-rate options, thereby improving liquidity. Furthermore, it can enhance the flexibility of your crypto exchange, enabling it to expand your client base to levels you could never imagine.
The decentralized aggregator scans liquidity pools across multiple blockchain networks to find the most efficient trading routes. That way, the exchange can reduce slippage and execute trades at prices as close as possible to the expected trade prices.
3) Access Millions of Trading Pairs
Cryptocurrency exchanges offer access to over 2,250,000 exchange pairs across popular blockchains, trending tokens, and stablecoins. Just embed ChangeNOW’s full-flow cryptocurrency exchange widget into your website or mobile app. Not only will it earn you at least 0.4% from its trading volume, but it will also allow you to accept deposits directly into your crypto wallet in the over 1,500 crypto and 70+ fiat assets available.
Alternatively, if you built your website with WordPress, you can use the ChangeNOW WordPress Crypto Exchange Plugin to add crypto exchange flows to it quickly. No coding or programming skills are needed.
4) Faster Digital Asset Listings with Wider Reach
Cross-chain liquidity enables faster, easier trading of digital assets and tokens from any location. Businesses can create a custom liquidity pool with any supported asset after listing their tokens. It can be either a standard asset listing or a multichain bridge.
A standard asset listing is suitable if your asset is represented on a centralized or decentralized exchange. It should already be trackable on the markets via CoinMarketCap and have a substantial liquidity pool to ensure continuous transaction flow.
A multichain bridge service is reserved for developed assets that need to connect to other blockchain networks for migration. It would be an asset not yet supported for exchange. To successfully bridge networks or assets, there can be no service fees involved.
5) Multiple Streams of New Revenue
Cryptocurrency exchanges can enjoy multiple streams of new revenue from cross-chain liquidity. You can set lower transaction fees for your cross-chain swaps to attract more users and receive more commissions.
As previously mentioned, you can earn at least 0.4% from every transaction that takes place on your platform. These are fully customizable and flexible commissions by assets, training pairs, and exchange amounts (swap sizes).
When your business is ready to withdraw its profits, you can do so in up to 11 supported cryptocurrencies or fiat currency of your choice. Then, as your monthly volume grows, you will be entitled to exclusive partner privileges and discounts from ChangeNOW.
Cryptocurrency exchanges can also join ChangeNOW’s partner programs to earn referral and affiliate commissions. Some crypto projects have the potential to earn up to 25% commission through the affiliate program.
6) More Operational Reliability to Reduce Risk
Cross-chain liquidity establishes more operational reliability for cryptocurrency exchanges. After all, a cross-chain is only effective for a business if it is reliable. That is one more reason to integrate ChangeNOW’s Crypto Exchange API into your new or existing cryptocurrency exchange.
The API offers 99.99% uptime, 350ms response time, and 10-minute accident warning time. If you do the math, it comes to no more than five minutes of downtime per month. You cannot ask for a more reliable API than that.
In addition, your cryptocurrency exchange can receive 24/7 support from a dedicated personal manager and support team to assist you with whatever you need, whenever you need it. That way, you can quickly resolve whatever issues your exchange may face before they negatively impact your business.
Conclusion
If your cryptocurrency exchange does not have cross-chain compatibility yet, now is the time to get it with ChangeNOW’s Crypto Exchange API or Widget. It makes all assets interchangeable, allowing users to make cross-chain swaps in a single, simple flow without complication.
Cryptocurrency exchange developers no longer need to reinvent or build their infrastructure from scratch. Within days, you can have your exchange up and running by using either the Crypto Exchange API or White Label Crypto Exchange. You will have the power to brand the exchange however you want and to offer both standard and fixed rate options.
In the end, you will have a crypto exchange that improves your users’ experience and increases your organization’s revenue.
