Wintermute, a cryptocurrency market maker and liquidity provider with over $3.6 trillion in total trading volume, has partnered with Woo X, a cryptocurrency exchange platform. Wintermute is going to serve as the cryptocurrency exchange’s official liquidity provider.
The two cryptocurrency-focused platforms’ most recent collaboration is a part of an aggressive and open initiative to bring in premier liquidity providers. Wintermute, a liquidity provider with offices in Singapore and London, is one of several market makers working with the cryptocurrency platform.
WOO X is also supported by additional liquidity providers like Black Code Group and Selini Capital. For instance, on Perpetual Protocol, Selini Capital has continuously contributed between 15 and 25 percent of the total maker volume.
According to WOO CEO Jack Tan, the transaction was made after watching the trading company maintain a solid track record for years and standing. Tan informed Coinbrit that Wintermute is a leading brand and market maker in the cryptocurrency space. He continued by saying that working with Wintermute helps WOO X gain more credibility among institutional circles in addition to increasing liquidity in the order books.
“It’s a strong signal to professional traders that we are serious about making WOO X an essential venue for trading.”
Both centralized and decentralized exchange (DEX) platforms are part of the Woo ecosystem. Tan informed Cointelegraph that the design of WOOFi’s v3, a decentralized order book and swap exchange, is currently being actively explored. The v3 version is expected to launch at the end of Q1 2024.
“The v2 is already processing over $100 million in daily volume, placing it at rank eight on DefiLlama for all DEXs. Being able to add additional LPs [liquidity providers] of the caliber of Wintermute could be a source of even better pricing for the exchange.“
To break free from reliance on a single liquidity source, WOO X is aggressively onboarding more market makers who are leaders in the industry and implementing competitive and long-lasting market maker incentives.
This stands in stark contrast to its 2019 launch, which employed a single market maker model. Currently, 60%–70% of futures volumes are supplied with liquidity by designated market makers.