Market structure

Liquidity withdrawal as an exit

A provider removes the asset buyers need to sell against.

Reference note · Sources below

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In this article

Overview

A provider removes the asset buyers need to sell against.

Holders retain tokens while executable exit depth vanishes.

Check LP ownership, locks, position NFTs and withdrawal transactions.

markets

The capital recorded in a pool is not necessarily available around the current price.

markets

Fee income and inventory changes must be evaluated together.

history

Automated market makers changed who could create a market and where execution costs appeared.

history

Compound's distribution helped popularise an incentive model that made activity and sustainable demand harder to separate.