Yilihua: It is recommended that exchanges establish liquidity adjustment funds to cope with extreme market conditions.
Jinse Finance reported that Yilihua posted on the X platform, stating that the market has seen liquidations totaling tens of billions of US dollars, mainly affecting market makers and active traders, causing far more damage to the market than imagined. He suggested that exchanges should allocate part of their profits to establish a liquidity regulation fund to avoid liquidity exhaustion in extreme situations. Otherwise, the market will suffer devastating damage, and not only exchange users but also the market and the exchanges themselves will be harmed.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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