Cell Protocol wants to “Democratize” Liquidity in DeFi

Accessing liquidity is a constant problem for any market, but particularly for decentralized finance (DeFi). Although the aim in crypto is to have fully interoperable networks and tools, users and assets currently are spread across different platforms – stretching capital thin.

Cell Protocol, a smart automated market maker, uses bots in an effort to provide liquidity. Its founder would say “more fairly,” too.

“We want to democratize end-user liquidity on CLOBs DEXs,” Cell Protocol strategy lead and co-founder Felix Xu said, referring to “central limit order book decentralized exchanges.” These exchanges are an open-source crypto platform that uses a similar orderbook as traditional asset markets.

It’s a tool to “provide liquidity just like professional market makers,” Xu explained.

Xu along with his pseudonymous founder @0x5_7 CLOBs are, according to them, the future of decentralized trading platforms. Today, many DEXs use what’s called an “automated market maker” to power trades – like the popular Ethereum-based Uniswap. CLOBs based on Solana, such as Mango Markets and Serum, are increasing in popularity.

@0x5_7 indicated that it is likely that you will “have to be programmer” to understand current CLOBs. To provide liquidity, you need to be able to code. That is blocking a lot of the DeFi users,” he said.

Although small for the world of DeFi – Cell only has $250,000 in total value locked (TVL) – it has big ambitions. It appears to be the king of liquidity provisioning. It launched in August 2021 and was the “first to market” within the world of Solana.

So it’s not surprising Cell is a finalist for Web 3 Pitch Fest, a hackathon hosted by Extreme Tech Challenge with winners to be announced at CoinDesk’s Consensus Festival.

0x5_7, a Stanford grad who is now based China and requested anonymity. Previously, Wu worked as an engineer for Coinbase providing services in blockchain integration and indexing. Wu is a self-declared serial blockchain entrepreneur who founded the privacy-preserving ARPA network as well as Bella Protocol. Cell Protocol uses non-fungible token cartoon characters to preserve anonymity for some of its founder members.

Cell Protocol is looking to grow “horizontally, vertically”, and become a unified liquidity platform across DeFi. Next is integration with other DEXs on Solana, including Serum Drift and Zeta Markets.

“We are expanding our reach to multiple networks, protocols,” 0x5_7 stated. “We are like building a unified liquidity layer on top of DEXs … then we can pour liquidity and users into our DEXs.”

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