Why L2 Exchange will a pioneer for future exchanges
L2 Exchange is an upcoming innovative exchange that is looking to take advantage of the benefits of both decentralized and centralized exchanges. Currently centralized exchanges are offering way more features than decentralized exchanges as well as liquidity, something crucial if you are a trader. The only real downside to centralized exchanges is the vulnerability to hacks and that they are controlled by a central authority.
Decentralized exchanges are a solution to those problems but they lack one very important feature, liquidity, there is almost no volume on decentralized exchanges which make it really hard if not impossible to trade, sometimes you can’t even find buy or sell orders. Clearly decentralized exchanges have to solve this somehow and that’s when L2 Exchange comes into play.
Level 2 Exchange will solve the problem of liquidity by offering a few benefits to market markers and institutional investors which in return will help with the liquidity. Additionally, L2 Exchange also enables traders to margin trade and margin fund, as well as trading using derivatives. Keep in mind that all these features work with a decentralized deposit system similar to most DEX’s.
L2 Exchange will also solve the problem of slow trades and high latency using FPGA technology as well as FIX API.