What Is Liquidity? (And Why It Matters for Onchain Trading) Liquidity is one of those words that gets thrown around constantly in crypto, but most people can’t explain it. At its core, liquidity is how easily and efficiently you can trade a token without moving the price too much. Think of it like this: If you’re selling a Taylor Swift ticket, there are thousands of buyers. You can sell instantly at market value. If you’re selling a ticket to @JohnWRichKid's garage band, you’ll have to wait or slash the price (we would recommend just not attending). That’s the difference between high liquidity and low liquidity. In crypto, high liquidity means: - You can enter and exit positions easily - Prices don’t swing wildly up or down with each trade - Market makers are active, and spreads are tight - Confidence grows — for traders, builders, and LPs Low liquidity means: - Trades take longer to fill - Slippage eats you alive. Even small orders can push the price up or down, so you pay more to buy or get less when you sell. - You can’t size up without affecting price - As a result, everyone gets spooked and volume dries up At Kuru, we care a lot about liquidity and how it's structured in our mission to be the trading hub for Monad. We’re a hybrid DEX (decentralized exchange): a fully onchain central limit order book (CLOB) backed by an integrated automated market maker (AMM) that gives you the assets you want, when you want them, at the best price possible. The CLOB gives you surgical control with limit orders, precision fills, and tight spreads. The AMM acts as a backstop, always there, even in thin markets, placing passive liquidity deployed by users across price bands. Together, they create a trading experience on Kuru that’s: - Fast, transparent, and composable - Appealing to pros but accessible to all users - Deep enough for size, but nimble enough for memes and long-tail assets In other words: Kuru provides liquidity that works for everyone. And that’s what onchain markets have been missing.