Liquidity

Liquidity is the degree to which an asset can be bought or sold quickly and near its current price without causing a significant price change.

A liquid market absorbs large orders with little price movement, while a thin one moves sharply on modest size, producing slippage. On centralized venues liquidity lives in the order book; on DEXs it sits in liquidity pools whose reserves set the price curve. Assessing liquidity matters before trusting a spot price, since a quote on a shallow market is easy to move. Our on-chain data exposes pool reserves and token metadata that let a caller gauge how deep a market really is.