Liquidity Management
Status: Planned
TEZEX plans to make liquidity easier to discover, understand, and manage across the Tezos ecosystem.
Liquidity positions may exist across different pools and applications, each with its own interface and management process. A more unified experience can make participation substantially easier for liquidity providers while helping capital move more efficiently between markets.
A Unified Liquidity View
Section titled “A Unified Liquidity View”TEZEX plans to provide a consolidated view of supported liquidity positions.
Relevant information can include:
- assets supplied;
- position value;
- market liquidity;
- trading volume;
- fees and earnings;
- historical performance;
- estimated returns;
- and other measures of position performance.
This makes it easier for users to understand how their capital is being used and where additional opportunities may exist.
Managing Capital
Section titled “Managing Capital”Liquidity management should extend beyond displaying information.
TEZEX plans to support actions such as:
- adding liquidity;
- removing liquidity;
- monitoring positions;
- rebalancing capital;
- and moving liquidity between supported markets.
This creates a more active capital-management layer around Tezos markets.
Liquidity Migration
Section titled “Liquidity Migration”As markets evolve, capital can remain in older or less active pools even when stronger opportunities have developed elsewhere.
TEZEX intends to make redeployment easier.
A migration process can simplify the steps required to exit one liquidity position, perform any necessary asset conversions, and enter another market.
This helps capital respond to changing market conditions instead of remaining stranded by fragmented interfaces or cumbersome workflows.
Better Information
Section titled “Better Information”Providing liquidity is an investment decision.
Liquidity providers benefit from understanding market depth, volume, fee generation, utilization, historical performance, and risks such as impermanent loss where applicable.
Better analytics make capital allocation more deliberate.
They also strengthen the relationship between the two sides of the market:
trading activity makes liquidity productive, and deeper liquidity improves execution for traders.
TEZEX intends to connect those two sides more directly.