Trade.io, a new exchange, has launched and is serving its first 1000 users, with more on a waiting list. The exchange is currently offering crypto trading only, but has plans to branch out into “asset classes such as forex, commodities and others.” Trade.io is promising zero downtime, a customizable interface, and transparent source code hosted on GitHub. The exchange will use SelfKey, a cross-site ID system, to streamline the KYC process. But Trade.io’s major feature is its peer liquidity pool.

Liquidity is the degree to which cryptocurrency can be exchanged without affecting the market value. This liquidity is facilitated by pools of assets. Typically, liquidity depends on an exchange’s private assets, but this isn’t the case with Trade.io. Instead, users will be able to pay into the exchange’s liquidity pool and receive some of the rewards of that investment:

The TIO [token] acts as an access key to the company Liquidity Pool. By ‘lending’ a minimum of 2500 Trade Tokens to the pool, the company will pay out interest to the trade holders on a daily basis according to a variety of factors influenced by the environment, conditions, performance and underlying company costs

This is just one of many approaches to liquidity in the crypto world. Dark pools are another prominent example, in which large trades are made outside of a standard exchanges to avoid shifts in market value during the transaction.

Various altcoins have their own approaches: Ripple’s XRP token is designed to serve as a liquidity or “bridge currency” in trades.  Stasis and other stable coins tie their value to fiat currencies to avoid liquidity shortages. Meanwhile, 0x is creating liquidity pools that platforms can share instead of creating their own.

Clearly, by rewarding users, Trade.io is taking a new approach to liquidity and the problem of market volatility. Time will tell whether it is ultimately a profitable approach.

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