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Announcing bullish range bound liquidity pools

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By Mark Woods, Product Manager

Since the launch of Bullish in November 2021, we have been offering our clients a reliable and comprehensive trading platform, backed by $3 billion in liquidity pools funded by our own Treasury. Now we are releasing Bullish’s first upgrade to our liquidity pool technology by introducing a range bound liquidity pool for the BTC/USD trading pair. This upgrade triples the order book depth within the quoted price range, making it one of the world’s deepest BTC/USD trading pairs and offering liquidity pool participants greater capital efficiency.

What are divisional liquidity pools?

We now offer two types of Bullish Liquidity Pools for trading asset pairs on the Bullish Exchange: Standard Liquidity Pools and Ranged Liquidity Pools.

Standard liquidity pools generate bids (buy orders) for every price increase below the current market price up to a price of zero and bids (sell orders) for every price increase above the current market price up to a theoretical maximum of infinity. In contrast, range-bound pools provide liquidity within a specific price range. This is more efficient and increases the depth of the offering with the same capital.

What are the advantages of compartmentalized liquidity pools?

Simply put, it is about market depth for traders and capital efficiency for liquidity pool participants. Because standard liquidity pools provide capital across all prices, most of the bid-ask offers generated are outside the daily trading range and the capital required to generate the bid-ask is neither useful nor efficient.

In area-bound liquidity pools, the same total amount of capital is aggregated to generate bids and asks within a given price range – resulting in greater order book depth and greater capital efficiency.

Optimistic about innovations

With the addition of dedicated pools of liquidity, we are taking an important and innovative step forward. This is just the beginning of what we have planned to create ever more efficient and customizable liquidity pools.

We are constantly innovating and developing new ways to provide traders and liquidity pool participants with the tools they need to maximize performance in a regulated and safe market. I can’t wait to share more details on our Earn product roadmap, including enhanced liquidity pool technology, in the coming months.

Trade our range-linked liquidity pools and experience the difference

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