Own Liquidity Module v1
The Own Liquidity Module changes the exchanger’s role in a deal. Instead of instantly reselling the flow to an external counterparty, the exchanger first buys the asset from a user at a fixed price, then sells that same asset to the next user. This turns the system from a classic “exchanger” into a micro-OTC desk with flow hedging through users.
What changes
In the standard scheme every order is hedged externally: the exchanger receives BTC from a client — and immediately sells BTC on an external market to close the position. No position accumulates, but every hedge means external fees, slippage, and dependence on external liquidity.
With the Own Liquidity Module, the system deliberately accumulates a position (inventory) and closes it against the opposite flow of its own clients:
- User A sells BTC to the exchanger → the system buys BTC and accumulates it in inventory.
- User B buys BTC from the exchanger → the system sells BTC from the previously accumulated inventory.
Opposite orders are netted inside the platform: the BTC bought from user A is sold to user B, and the spread between the buy and sell prices stays in the system.
Why it matters for a partner
- Earn the spread on both sides of the flow — the margin is formed inside the platform instead of going to an external hedging counterparty.
- Less dependence on external liquidity — the opposite client flow closes the position by itself.
- Controlled risk — target inventory levels, deviation control, and dynamic pricing keep the position from growing uncontrollably.
How the module is organized
The module is built on a two-phase model (buy → sell), per-currency inventory accounting, and pricing that takes into account not only the market but also the system’s current position:
- Two-Phase Model: Inventory Fill / Inventory Release
- Component Architecture
- Inventory Model: Balances and States
- Swap Execution Logic
- Pricing Engine: final_rate and inventory_skew
v1 limitations
- The module works on configured trading pairs (e.g. BTC/USDT) with set target inventory levels.
- Deviation risk is controlled through price and target levels; sensitivity parameters are tuned individually.
- This is the first version of the module: behavior and the parameter set will expand in future releases.
See also