Cryptocurrency data provider Kaiko has launched a new decentralised exchange (DEX) liquidity pool data feed, covering the Uniswap, SushiSwap, Curve Finance and Balancer markets.
Building on the launch of Kaiko’s DEX data feed in November 2021, which provides trade data for the same four DEX exchanges, Kaiko will now display comprehensive liquidity data from those endpoints, both historically and in real time, enabling Kaiko’s clients to have visibility over all four DEX liquidity pools.
“Unlike traditional markets, where centralised exchanges provide order book data, decentralised exchanges don’t actually operate order book,s everything is deployed on the blockchain. So from an order entry perspective, to create a feed of liquidity events, what we have to do is capture all individual addresses submitting or removing supply on-chain,” says Bediss Cherif, Head of Product at Kaiko.
Kaiko is looking to address the fact that access to standardised liquidity pool transactions and token reserves on multiple DEXs has, until now, been limited. Kaiko’s Liquidity Pool data enables financial institutions and enterprises to easily analyse market depths and the activities of liquidity providers, to better understand the market.
“The problem we are solving is that DEX liquidity pool data is supposed to be public, but there is a lack of transparency, because no one can see who’s providing liquidity where, and what is the actual state of the liquidity pool at any given point in time, even though the data is there,” says Cherif.
“With our DEX Liquidity Pool Data Feed, we not only capture the data, we also reverse engineer all the rules of the automated matching algorithm and the code embedded in the smart contracts, and build the market data feed out of that. And because we capture everything going to these pools, we can provide the services to track – on chain – which addresses are putting money in and where the money is going, which can also help with things like market abuse monitoring and surveillance, which is essential for financial institutions.”
Launching with these four liquidity pools provides a good foundation for further DEX coverage, says Cherif.
“With this set of four, we have the hardest, the most popular, the most institutional, and one that gives us an idea of the complexity to add coverage. So with these four, we have a pretty good idea of the road ahead and the challenges that will need to be overcome as we grow our coverage.”
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