Fractal describes itself as ‘The Liquidity Source’. Projects, protocols, and traders, live and die by liquidity, and thus the marginal change in liquidity possesses quantitative value for particular entities. Fractal is building a decentralized liquidity network that allows FTL holders to direct the flow of liquidity towards particular assets and venues, in such, Fractal can be seen as a dynamic liquidity surfacing protocol. 

Fractal is able to 

 

  • Surface proprietary (Fractal reserve) and network liquidity (LPs staking and pledging assets)
  • Direct this liquidity to particular venues/markets. 

 

The dynamic portion of Fractal stems from its venue/asset agnosticism. Fractal is neither the exchange nor the aggregator, but an asset reservoir at the protocol level and the mechanism for incentivising asset liquidity.  

 

In the most basic sense, Fractal is a decentralized market maker. FTL holders dictate where and for what asset the Fractal “DAO” market makes for. Unlike centralized market makers, Fractal, taps into a decentralized network of liquidity providers who stake and pledge assets (in a non-custodial manner) for Fractal market making. If a centralised market maker’s limiting factor for scale is capital, Fractal alleviates this inhibitor. Fractal, as of day 1, works only with an order book, but plans to be adapted to map

To read this full report and get access to Delphi's research portal, become a member!

Subscribe Now