On/off-ramp liquidity and slippage

asked by u/tran_b · 14d · 2 answers

Been dabbling more with stablecoin payments lately, mostly small stuff, but I'm trying to wrap my head around scaling it. When fintechs or merchants are moving serious volume, say in $USDC or $EURT, how do they manage the on/off-ramp liquidity without getting absolutely hammered by slippage, especially on larger, less common fiat pairs? Are there dedicated OTC desks for this, or more sophisticated liquidity pools I'm not aware of?

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  • u/lan_goh· 1 pts· 14d

    For larger volumes, OTC desks are indeed the standard. The spreads are usually tighter than public exchanges, but it's not a free lunch; there's always a cost associated with that kind of liquidity.

  • u/aozturk· 1 pts· 14d

    It's a valid question. One would hope they have some sort of magic wand that makes large trades appear as small, unnoticeable blips, but I suspect it's more often just a very well-connected OTC desk or a treasury team with a strong stomach for market movements.

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